The University of Southampton
Courses

MANG6023 Corporate Finance 2

Module Overview

This module covers topics such as investment appraisal, evaluation of corporate investment, M&As, 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

Module Aims

To enhance your understanding of several key issues in corporate finance.

Learning Outcomes

Knowledge and Understanding

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

  • Demonstrate a rigorous understanding of key concepts in investment appraisal, managing foreign exchange exposure, corporate governance, managerial compensation and the market for corporate control.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Demonstrate qualitative and quantitative skills in evaluating alternative investments.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Demonstrate teamwork skills in analysing a contemporary issue

Syllabus

Investment Appraisal • The capital budgeting process. Methods of investment appraisal. • Identification of relevant cash flows. Net present value. Discount rate. Internal rate of return. • Capital rationing. Real options. International investment decisions. Managing Foreign Exchange Exposure • Foreign exchange exposure and the euro. Hedging and the value of the firm. • Types of foreign exchange exposure and methods of management. Transaction exposure. • Accounting exposure. Operating exposure. Corporate Governance • Corporate governance systems. Separation of ownership and control. Agency problems. Managerial Compensation • Compensation systems. Types of incentive structure. Executive share options. • Mergers and Acquisitions. • The market for corporate control.

Learning and Teaching

Teaching and learning methods

This module will involve 24 contact hours over a six-week period. Lectures are used to introduce and develop knowledge of individual topics. Lectures may involve formal lecture using OHP, case studies, with the remaining time being devoted to class exercises.

TypeHours
Teaching24
Independent Study126
Total study time150

Resources & Reading list

Hull, John C. (2009). Options, Futures and Other Derivatives. 

Brealey, R.A. & Myers, S.C (2011). Principles of Corporate Finance. 

Haugen, R. A. (2001). Modern Investment Theory. 

Berk, J. and P. DeMarzo (2007). Corporate Finance. 

Broyles, J. (2003). Financial Management and Real Options. 

Cuthbertson, K. and D. Nitzsche (2004). Quantitative Financial Economics: Stocks, Bonds and Foreign Exchange. 

Brigham, E. F. and M. C. Ehrhardt (2005). Financial Management: Theory and Practice. 

Bailey, R. E (2005). The Economics of Financial Markets. 

Assessment

Formative

Feedback

Summative

MethodPercentage contribution
Examination  (2 hours) 70%
Group Coursework  (3000 words) 30%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 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 core/recommended 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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