Module ECON2101: CORPORATE FINANCE

Department: Business School (Economics and Finance)

ECON2101: CORPORATE FINANCE

Prerequisites

• Elements of Economics (ECON1011) AND EITHER Economic Methods (ECON1021) OR (MATH1061) Calculus and Probability I AND (MATH1071) Linear Algebra I OR (MATH1541) Statistics AND (MATH1561) Single Maths A OR (MATH1551) Maths for Engineers and Scientists AND (MATH1541) Statistics OR successful completion of Phase 1 of the Economics programme at Shandong University, China

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• 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.

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: theory and evidence.
• The Efficient Market Hypothesis.
• The capital structure decision.
• The dividend decision.
• Option pricing theory.
• Mergers and Acquisitions

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 - 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 and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study. Formative assessment is by means of an essay. Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

1,500 word written assignment.

■ 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