Durham University
Programme and Module Handbook

Undergraduate Programme and Module Handbook 2018-2019 (archived)


Department: Business School (Economics and Finance)


Type Tied Level 1 Credits 20 Availability Available in 2018/19 Module Cap None. Location Durham
Tied to NN43
Tied to N302
Tied to N304
Tied to N305
Tied to N306
Tied to N307
Tied to NN42
Tied to N204
Tied to N206


  • None.


  • None.

Excluded Combination of Modules

  • None.


  • Introduce the key principles of corporate finance and their importance to firms
  • Provide students with a solid grounding in issues of finance as they relate to business and financial markets
  • Provide students with foundations to build on their knowledge and understanding in level 2
  • Offer students the opportunity to develop key skills


  • An introduction to finance.
  • Organisational goals and the financial objectives of the corporation.
  • The financial environment.
  • The time dimension in finance and the time value of money.
  • Valuing bonds and stocks.
  • The appraisal of investment opportunities: payback, accounting rate of return, net present value, internal rate of return.
  • Practical issues of investment appraisal.
  • An introduction to risk and uncertainty.
  • Diversification.
  • Capital market efficiency.
  • Cost of capital.
  • Capital structure.
  • Dividend policy.
  • An introduction to corporate restructuring - mergers and acquisitions.
  • Introduction to international finance.

Learning Outcomes

Subject-specific Knowledge:
  • By the end of this module students should:
  • Understand the fundamental concepts of corporate finance.
  • Appreciate the relationship between these fundamental concepts and decision-making by practitioners and participants in financial markets.
  • Have knowledge of methods and applications of quantitative techniques relating to essential issues in finance.
  • Appreciate the framework in which financial issues and problems are presented, providing a foundation for appropriate analysis.
Subject-specific Skills:
  • Students will develop the following subject-specific skills over the course of the module:
  • Ability to explain and interpret key implications of fundamental concepts in corporate finance, for example relating to capital structure and dividend policy.
  • Practice in the application of core mathematical skills to foundational concepts in finance, such as the time-value of money and capital budgeting.
  • Critical thinking in terms of core concepts in finance and their application to real-world issues.
Key Skills:
  • Students will have the opportunity to develop the following key skills:
  • Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to demonstrate understanding and manipulate core concepts in finance, in undertaking seminar work and answering examination questions.
  • Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of seminar and examination questions.
  • Planning and Organisation and Time Management - e.g. by revising relevant material and preparing for the examination.
  • Computer Literacy - e.g. by accessing, and downloading teaching material from DUO, undertaking bibliographical search, and information retrieval for seminars and assignments.

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

  • Teaching is by lectures and seminars. Learning takes place through attendance at lectures, preparation for and participation in seminar classes and private study.
  • Formative assessment is by means of a group presentation and Multiple Choice test.
  • Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 38 2 per week 1 hr 38
Seminars 9 9 across terms 1 and 2 1 hr 9
Preparation and Reading 153
Total 200

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
One written examination 2 hours 30 mins 100% same

Formative Assessment:

Group presentation, individual Multiple Choice Test.

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