Module ECOS2011: CORPORATE FINANCE

Department: ECONOMICS FINANCE AND BUSINESS (BUSINESS FINANCE) [Queen's Campus, Stockton]

ECOS2011: CORPORATE FINANCE

Prerequisites

• All Level 1 compulsory modules.

Corequisites

• All level 2 compulsory modules.

Excluded Combination of Modules

• None.

Aims

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

Content

• 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

• Have knowledge and understanding of essential principles of Corporate Finance

• Be able to use principles of Corporate Finance to analyse financial issues

• Written Communication - 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 class and 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 not more than 1500 words. Summative assessment is by means of an unseen written examination of 2 hours and 15 minutes.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

One piece of written work of not more than 1500 words.

■ 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