The University of Southampton
Courses

MANG6028 Corporate Finance

Module Overview

This module provides a deep insight in some key theories and topics in Corporate Finance. The module looks at how firms and corporation manage financial investment and decisions in the long term and short term. The module will discuss topics ranging from simple time value of money to how firms evaluate financial performance, decision regarding investment in capital, capital structure, how firms decide in dividend policy.

Aims and Objectives

Module Aims

• Provides an understanding of the modern theories of corporate finance • Analyses optimal financial policy on a firm level • Provides an understanding how the actual financial decisions of firms may be explained in theoretical terms.

Learning Outcomes

Knowledge and Understanding

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

  • understand how firms and individual investors evaluate investment projects using certain rules regarding the time value of money;
  • understand the theoretical setup of the risk and return relationship of a financial investment relationship and how this may be used to price financial assets, such as stocks and bonds;
  • comprehend the capital structure of a firm and how firms decide between bonds and stocks.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • analyse the effect of time on the value of financial assets and money;
  • understand the basic concepts of risk and return in capital markets and traditional portfolio theory paradigms (CAPM and APT);
  • analyse the Modigliani and Miller theories regarding payout policy and capital structure.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • succeed in team work in the context of corporate finance;
  • carry out a comprehensive financial analysis.

Syllabus

• Overview of Corporate Finance Valuation of Bonds and Common Stocks • Introduction to Risk and Return • Portfolio Theory • Dividend Policy and Capital Structure.

Learning and Teaching

Teaching and learning methods

The module is taught over a period of six weeks. Each week consists of 3.5 hours plus of teaching. The teaching consists of 3 lectures per week plus one class involving case studies and numerical problem solving.

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

Brealey, Myers and Allen. Principles of Corporate Finance. 

Assessment

Formative

Feedback

Summative

MethodPercentage contribution
Examination  (2 hours) 70%
Group Assignment  (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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