Durham University
Programme and Module Handbook

Undergraduate Programme and Module Handbook 2005-2006 (archived)




Type Open Level 2 Credits 20 Availability Available in 2005/06 Module Cap None. Location Durham


  • Economic Methods (ECON1021) AND Elements of Economics (ECON1011) (or equivalent).


  • None.

Excluded Combination of Modules

  • None.


  • To develop your knowledge and understanding of key issues in Corporate Finance by building on the skills gained in level 1
  • To provide you with a good grounding for undertaking a dissertation in the finance field
  • To offer you the opportunity to develop some key skills.


  • An introduction to Financial Economics and Financial Markets: An introduction to finance and organisational goals.
  • The financial objectives of the corporation, the principle-agent relationship.
  • The valuation of securities.
  • Investment Decision Making under Conditions of Certainty.
  • Investment decisions in practice.
  • Dealing with risk and Uncertainty: Measuring risk.
  • Diversifiable and non-diversifiable risk.
  • The Capital Asset Pricing Model.
  • Is Beta dead?
  • The Efficient Market Hypothesis.
  • The capital structure decision.
  • The dividend decision.
  • Option pricing theory.

Learning Outcomes

Subject-specific Knowledge:
  • Have knowledge and understanding of essential principles of Corporate Finance
Subject-specific Skills:
  • Be able to use principles of Corporate Finance to analyse financial issues
Key Skills:
  • Written Communication - e.g. by completing formative assignments and through summative assessment.
  • Planning, Organisation and Time Management - e.g. by preparing for examinations.
  • Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to manipulate concepts in corporate finance, in undertaking assessed work.
  • Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of examination questions.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Teaching is by lectures, tutorials and support for student-centred learning. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes and private study (inlcuding student-centred learning). Formative assessment is by means of one piece of written work of 1500 words. Summative assessment is by means of an unseen written examination of two and a quarter hours duration.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 22 1 per week 1 hour 22
Tutorials 8 Fortnightly 1 hour 8
Preparation and Reading 170
Total 200

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
one two-and-a-quarter-hour written examination 100%

Formative Assessment:

1 multiple choice test at the beginning of term 2

Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University