FIN40410 Finance

Academic Year 2021/2022

This course is designed to introduce students to important concepts and theories in corporate finance and to investigate possible applications of these concepts in real-world situations, with particular focus on new venture and new project financing.

Value creation is one of the most fundamental concepts in corporate finance. If value maximisation is at the heart of management decisions made within the firm, then shareholders are properly looked after. The theme of value creation is operationalised through the Net Present Value concept (NPV) and a Real Options Valuation (ROV) perspective.


The student will be introduced to the study of project evaluation by modern methods (including NPV and ROV), bond and stock valuation, capital structure, portfolio theory, capital raising, Derivatives including (Real) Option valuation, and Mergers and Acquisitions.

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Curricular information is subject to change

Learning Outcomes:

Upon completion of this module the student will have acquired the ability to:

- Display a detailed understanding of investment appraisal techniques including Net Present Value (NPV) and Real Option
Valuation(ROV).
- Understand concepts like value, return, risk, diversification, portfolio theory and cost of capital.
- Analyse the appropriate capital structures vis-a-vis financing decisions.
- Value companies and projects.
- Appreciate the role of Financial Options for purposes of risk management, valuation of equity (and debt) and and use of real options in valuing Research and Development.


Indicative Module Content:

Time value of money
Present values,
Bond and stock valuation,
Risk and Return,
Cost of Capital,
Miller and Modigliani,
Issue of securities,
Corporate structure and Debt policy,
Valuing a corporate firm
Financial Options and the valuation of corporate securities.
Valuing Research and Development: A Real Options Perspective
Mergers and acquisitions

Student Effort Hours: 
Student Effort Type Hours
Autonomous Student Learning

100

Lectures

24

Total

124

Approaches to Teaching and Learning:
Students will attend on-line lectures to hear and understand the topics highlighted under indicative module content. Individual assignments will help the understanding of of the numerical analysis of and valuation of corporate financial securities and projects.

Finally, students will work in groups to produce a report analyzing and valuing the shares of a quoted company. 
Requirements, Exclusions and Recommendations
Learning Requirements:

This couse is designed for students pursuing the Masters in Industrial Engineering (MIE)


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: Mid-Semester Time Constrained Quiz Week 7 n/a Graded No

25

Essay: This essay will require the students to review specific financial theories and practices as identified by the module coordinator. Week 10 n/a Graded No

35

Group Project: Group Report and Presentation of Specified Company Throughout the Trimester n/a Graded No

40


Carry forward of passed components
No
 
Remediation Type Remediation Timing
In-Module Resit Prior to relevant Programme Exam Board
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Feedback individually to students, post-assessment
• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Mid Semester Quiz - feedback on performance Feedback on individual essay Feedback on Group Project and Presentation according to pre-specified template.

Brealey, Myers, Allen, Principles of Corporate Finance, McGraw Hill - Any Recent Edition
Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.
 
Spring
     
Lecture Offering 1 Week(s) - 19, 20, 21, 22, 23, 24, 25, 28, 29, 30, 32 Fri 19:00 - 20:50