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
Learning Outcomes
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- How to manage a portfolio of investments and financial assets as well as assess the risk-return trade off.
- Corporate governance and agency theory;
- How to evaluate a firm's operating, financing, investing and wealth distribution decisions;
- The operations of a finance department and the raising of capital;
- How to make investment decisions as well as how to measure investment and corporate performance;
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- Deal with corporate governance issues and agency problems in corporations;
- Determine the optimal capital structure and the costs of capital;
- Value company assets and financial securities;
- Measure the returns and risks associated with financial assets;
- 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:
- 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.
- Write effectively for business purposes;
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
| Type | Hours |
|---|---|
| Teaching | 30 |
| Independent Study | 70 |
| Total study time | 100 |
Resources & Reading list
Textbooks
Brealey, R. A., Myers S. C. (2014). Principles of Corporate Finance. McGraw Hill.
Jonathan Berk & Peter DeMarzo (2019). Corporate Finance - 5th Global Edition. Pearson.
Assessment
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
In-class formative opportunitiesSummative
This is how we’ll formally assess what you have learned in this module.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
| Method | Percentage contribution |
|---|---|
| Examination | 100% |
Repeat Information
Repeat type: Internal & External