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The University of Southampton
Courses

MANG6023 Corporate Finance 2

Module Overview

This module covers topics such as investment appraisal, evaluation of corporate investment, M&A, corporate governance issues in both theoretical and empirical aspects, and thus provides the knowledge which may be required for managers. The materials may be extended by including new findings in the research literature and students can get more up-to-date knowledge in the corporate finance area.

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • The time value of money (present and future values of cash flows and series of cash flows).
  • Investment Appraisal Techniques (Net Present Value, Internal Rate of Return, Payback Period, etc.).
  • Real Options Valuation (focusing on the binomial lattice and the Black-Scholes formula estimation methods).
  • Corporate Governance (analysing concepts about corporations, define financial & real values and discussing the agency problem and its remedies).
  • Dividend Policy (defining dividends and their different variations, introducing the Modigliani and Miller dividend irrelevance theory and the Gordon Growth Model).
  • Mergers and Acquisitions (define mergers & acquisitions (M&A), analyse the drivers of M&A, overview basic concepts regarding M&A).
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Demonstrate deep understanding of theoretical material and the channels via which the theory supports case study evidence.
  • Demonstrate qualitative and quantitative skills in evaluating corporate investments.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Manage and prioritise workload when analysing complex contemporary issues.
  • Develop numeracy and analytical skills via solving exercises on the taught material.

Syllabus

1. Time Value of Money 2. Investment Appraisal 3. The Real Options Approach 4. Corporate Governance 5. Dividend Policy 6. Mergers & Acquisitions

Learning and Teaching

Teaching and learning methods

This module will involve 24 contact hours, taught in blocks (lectures) of 2 hours each. Each lecture will start by stating the learning outcomes (LOs). The LOs will be ranked from the essential to advanced understanding of the lecture materials.

TypeHours
Teaching24
Independent Study126
Total study time150

Resources & Reading list

Brigham, E., Ehrhardt, M., and Fox (2019). Financial Management: Theory and Practice. 

Brealey, R.A., Myers, S.C., Allen, F (2019). Principles of Corporate Finance. 

Lumby, S., and Jones, C. (2019). Corporate Finance: Theory and Practice. 

Watson, D., and Head, A (2016). Corporate Finance: Principles and Practice. 

Assessment

Formative

Feedback

Summative

MethodPercentage contribution
Examination  (3 hours) 100%

Repeat

MethodPercentage contribution
Examination  (3 hours) 100%

Referral

MethodPercentage contribution
Examination  (3 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the mandatory/additional reading text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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