Module FINN2041: Corporate Finance

Department: Finance

FINN2041: Corporate Finance

Prerequisites

• Foundations of Finance (FINN1011)

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• Provide students with theoretical knowledge and practical understanding of key theories in finance and corporate policy decisions by building on and developing the knowledge and skills acquired at Level 1.
• To provide students with a good grounding for undertaking a dissertation in the finance field.
• Familiarise students with selected empirical issues and methods of analysis of corporate financial decisions within the broader framework of financial theories.

Content

• The following is indicative of the types of area to be covered:
• Asymmetric information, agency theory and corporate governance.
• Measures of risk, mean variance analysis and portfolio theory.
• The Capital Asset Pricing Model (CAPM), its extensions and Arbitrage Pricing Theory (APT).
• Corporate Valuation: Present Value Models (Free Cash Flow Valuation) and Multiplier Models (Enterprise Valuation).
• Long term equity financing.
• Capital Structure and the cost of capital: Theory and empirical evidence.
• Real option analysis.
• Dividend policy: Theory and empirical evidence.
• Mergers, Acquisitions and Corporate Control.

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 and seminars. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study.
• Formative assessment is by means of an online test.
• Summative assessment is by means of an online test and an online open book examination (2 hours lone) to be taken over a 24-hour window.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Online test which will consist of multiple choice questions, no longer than 1.5 hours in duration.

■ 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