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Courses

MANG6344 Corporate Finance

Module Overview

Corporate Finance is essential to the successful running of any corporation and includes maximising shareholders’ wealth, assessing investments, determining the costs of capital and making financing decisions. Most organisations make decisions pertaining to the above on an ongoing basis, which makes the understanding of corporate finance crucial to manage organisations effectively.

Aims and Objectives

Module Aims

to introduce the core corporate finance concepts and related key topic areas with a particular focus on the financing and investment aspects of managing business finances. Students will be exposed to both the theories of corporate finance as well as their applications using numerical examples. The aim is that by the end of the module, students will be expected to demonstrate proficiency in the application and critical assessment of the following learning outcomes:

Learning Outcomes

Knowledge and Understanding

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

  • The operations of a finance department and the raising of capital;
  • Corporate governance and agency theory;
  • How to make investment decisions as well as how to measure investment and corporate performance;
  • How to evaluate a firm’s operating, financing, investing and wealth distribution decisions;
  • How to manage a portfolio of investments and financial assets as well as assess the risk-return trade off.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Value company assets and financial securities;
  • Deal with corporate governance issues and agency problems in corporations;
  • Measure the returns and risks associated with financial assets;
  • Determine the optimal capital structure and the costs of capital;
  • Analyse the firm’s business environment using demand and supply analysis.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Write effectively for business purposes;
  • Manage time and tasks effectively in the context of individual study and group work activities;
  • Interpret and analyse quantitative data related to business issues, using appropriate financial and/or statistical skills and models to solve problems.

Syllabus

The finance function Corporate governance and agency theory Measurements of financial performance Capital markets and market efficiency Short-term finance and the management of working capital Long-term finance: equity finance Long-term finance: debt finance, hybrid finance and leasing Investment appraisal methods Portfolio theory and the capital asset pricing model The cost of equity and debt capital and the optimum capital structure Dividend policy and the methods to distribute wealth to shareholders The microeconomics of demand and supply

Learning and Teaching

Teaching and learning methods

Teaching methods include - Guided background reading - Lectures - Informal group work - The exploration of mini case studies - In-class discussions based on financial market developments current at the time of the course Learning activities include - Group exercise - Private study - Written exam

TypeHours
Independent Study70
Teaching30
Total study time100

Resources & Reading list

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

Brealey, R. A., Myers S. C. (2014). Principles of Corporate Finance. 

Assessment

Formative

In-class formative opportunities

Summative

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

Students will be given formative feedback as part of the exercises, mini case studies and discussions that the tutor will assign and manage in the classroom.

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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