Undergraduate Programme and Module Handbook 2024-2025
Module FINN2041: Corporate Finance
Department: Finance
FINN2041: Corporate Finance
| Type | Tied | Level | 2 | Credits | 20 | Availability | Available in 2024/2025 | 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 | L100 |
| Tied to | L106 |
| Tied to | L109 |
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.
- Project appraisals and real option analysis
- Measures of risk, mean variance analysis and portfolio theory.
- The Capital Asset Pricing Model (CAPM), its extensions and Arbitrage Pricing Theory (APT).
- Cost of capital
- Efficient markets
- Long term equity financing.
- Capital Structure: Theory and empirical evidence
- Dividend and payout policy: Theory and empirical evidence.
- Mergers, Acquisitions and Corporate Control.
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 - 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 workshops. Learning takes place through attendance at lectures, preparation for and participation in workshops, and private study.
- Formative assessment is by means of online test.
- Summative assessment is by means of an online multiple-choice test and an in-person written exam.
Teaching Methods and Learning Hours
| Activity | Number | Frequency | Duration | Total/Hours | |
|---|---|---|---|---|---|
| Lectures | 10 | 1 per week | 2 hr | 20 | |
| Workshops | 4 | Fortnightly | 2 hr | 8 | ■ |
| Preparation and Reading | 172 | ||||
| Total | 200 |
Summative Assessment
| Component: Online Test | Component Weighting: 30% | ||
|---|---|---|---|
| Element | Length / duration | Element Weighting | Resit Opportunity |
| Online Test | 1.5 hours | 100% | same |
| Component: Examination | Component Weighting: 70% | ||
| Element | Length / duration | Element Weighting | Resit Opportunity |
| Written in-person exam | 2 hours | 100% | same |
Formative Assessment:
Online 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