Undergraduate Programme and Module Handbook 2024-2025
Module FINN3011: Financial Theory and Corporate Policy
Department: Finance
FINN3011: Financial Theory and Corporate Policy
| Type | Tied | Level | 3 | Credits | 20 | Availability | Available in 2024/2025 | Module Cap | None. | Location | Durham |
|---|
| Tied to | NN43 |
|---|---|
| Tied to | N302 |
| Tied to | N304 |
| Tied to | L100 |
| Tied to | L106 |
| Tied to | L109 |
Prerequisites
- Microeconomics (ECON2021) OR Corporate Finance (FINN2041)
Corequisites
- None
Excluded Combination of Modules
- None
Aims
- This module aims to:
- provide students with theoretical knowledge and understanding of key selected theories in finance and corporate policy decisions by building on the knowledge and skills acquired at level 2.
- familiarise students with selected empirical issues and methods of analysis of corporate financial decisions within the broader framework of financial theories.
Content
- Expected utility, stochastic dominance and state-preference theories.
- Mean-Variance criteria and portfolio theory.
- CAPM, CCAPM and APT.
- Asymmetric information and agency theory.
- Capital structure.
- Dividend policy.
- Corporate governance
Learning Outcomes
Subject-specific Knowledge:
- At the conclusion of this module students should have:
- knowledge and understanding of theoretical issues relating to corporate financial policy decision.
- had the opportunities to appreciate the applications in corporate financial policy decisions drawing on recent research.
Subject-specific Skills:
- At the conclusion of this module students should be able to apply their knowledge in decision making, in corporate financial policy and they should therefore also be able to critically judge the extent of each major financial policy decision on the wealth of the firm and solve relevant problems.
Key Skills:
- Written Communication - through summative assessment.
- Planning and Organising - by observing the strict assignment deadlines and by preparing for the examination.
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 an essay.
- Summative assessment is by means of a written examination and an assignment.
Teaching Methods and Learning Hours
| Activity | Number | Frequency | Duration | Total/Hours | |
|---|---|---|---|---|---|
| Lectures | 20 | 1 per week | 1 hr | 20 | |
| Workshops | 8 | 4 in term 1, 4 in term 2 | 1 hr | 8 | |
| Preparation and Reading | 172 | ||||
| Total | 200 |
Summative Assessment
| Component: Assignment | Component Weighting: 30% | ||
|---|---|---|---|
| Element | Length / duration | Element Weighting | Resit Opportunity |
| One written assignment | 2000 words max | 100% | same |
| Component: Examination | Component Weighting: 70% | ||
| Element | Length / duration | Element Weighting | Resit Opportunity |
| Online synchronous timed written exam | 2 hours | 100% | same |
Formative Assessment:
One 1500 word essay
■ 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