Overview:
- Credits:
- 7.5
- Level:
- 4
- Semester:
- Autumn
- Subject:
- Finance
- School:
- Business
- Coordinator:
- Ms Jiaman Xu
FIN40940 Corporate Finance
Academic Year 2023/2024
Corporate Finance is concerned with how corporations raise, manage and spend money.This is an introductory finance module designed to give students a foundation in financial
decision making within the corporation. On completing this module students will have an
understanding of the role of the financial manager in a company in appraising investments,
quantifying the risk/return relationship, evaluating sources of company funding, setting dividend
policy and producing value from mergers.
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Curricular information is subject to change
Learning Outcomes:
On completion of this module students should: -
1. Understand why shareholder wealth maximisation is considered to be the primary
objective of a business.
2. Achieve a good practical understanding of the 3 principal financial decisions that flow
from shareholder wealth maximisation, namely
• the financing decision,
• the investment decision, and,
• the dividend decision.
3. Appreciate the theoretical principles associated with the 3 principal financial decisions.
4. Develop an understanding of functional financial decisions, such as mergers and asset valuation.
5. Appreciate the linkages between finance and other key business disciplines.
Topics Covered:
1. Time Value of Money
2. Introduction to Corporate Finance
3. Bond and Stock Valuation
4. Risk and Return
5. The Cost of Capital
6. Capital Budgeting
7. Capital Structure
8. Corporate Payout
9. Risk Management and Derivatives
10. Mergers and Acquisitions
| Student Effort Type | Hours |
|---|---|
| Specified Learning Activities | 30 |
| Autonomous Student Learning | 90 |
| Lectures | 24 |
| Small Group | 1 |
| Total | 145 |
Requirements, Exclusions and Recommendations
Learning Requirements:No prior learning required
Module Requisites and Incompatibles
Not applicable to this module.
Assessment Strategy
| Description | Timing | Component Scale | % of Final Grade | ||
|---|---|---|---|---|---|
| Group Project: Students will work in groups to value a corporate firm and to present their findings in a report. | Coursework (End of Trimester) | n/a | Standard conversion grade scale 40% | No | 60 |
| Examination: Exam | 2 hour End of Trimester Exam | No | Standard conversion grade scale 40% | No | 40 |
| Resit In | Terminal Exam |
|---|---|
| Spring | Yes - 2 Hour |
Feedback Strategy/Strategies
• Group/class feedback, post-assessment
• Peer review activities
How will my Feedback be Delivered?
Students will receive group feedbacks on their project work.
Textbooks:
1. Hillier, D, Ross, S, Westerfield, R, and Jordan, B, (2016), Corporate Finance, 3rd European Edition, McGraw-Hill Education (ISBN: 9780077173630)
2. Brealey, RA, Myers, SC and Marcus, AJ, (2017), Fundamentals of Corporate Finance, 9th edition, McGraw-Hill Education (ISBN: 9781259722615)
1. Hillier, D, Ross, S, Westerfield, R, and Jordan, B, (2016), Corporate Finance, 3rd European Edition, McGraw-Hill Education (ISBN: 9780077173630)
2. Brealey, RA, Myers, SC and Marcus, AJ, (2017), Fundamentals of Corporate Finance, 9th edition, McGraw-Hill Education (ISBN: 9781259722615)
| Name | Role |
|---|---|
| Dr Tiffany Thng | Lecturer / Co-Lecturer |
| Ronald Wafula | Tutor |
| lanxin lu | Tutor |
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