FIN40940 Corporate Finance

Academic Year 2021/2022

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

What will I learn?

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.

Indicative Module Content:

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

How will I learn?

Student Effort Type	Hours
Specified Learning Activities	30
Autonomous Student Learning	90
Lectures	24
Small Group	1
Total	145

Am I eligible to take this module?

Requirements, Exclusions and Recommendations

Learning Requirements:

No prior learning required

Module Requisites and Incompatibles

Not applicable to this module.

How will I be assessed?

Assessment Strategy

Description	Timing	Open Book Exam	Component Scale	Must Pass Component	% of Final Grade
Continuous Assessment: There will be 2 MCQ/Short Answer Questions tests	Throughout the Trimester	n/a	Alternative linear conversion grade scale 40%	No	30
Examination: Exam	Week 12	No	Alternative linear conversion grade scale 40%	No	30
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	Alternative linear conversion grade scale 40%	No	40

Carry forward of passed components
No

What happens if I fail?

Resit In	Terminal Exam
Spring	Yes - 2 Hour

Assessment feedback

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 within 20 days of submission. Each student will be required to write a one-page learning journal.

Reading List

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)

Associated Staff

Name	Role
Dr Tiffany Thng	Lecturer / Co-Lecturer

When is this module offered?


Autumn
Lecture	Offering 1	Week(s) - 1, 5, 6	Fri 11:30 - 13:20
Lecture	Offering 1	Week(s) - 8, 9, 10, 11	Mon 09:00 - 10:50
Tutorial	Offering 1	Week(s) - 3	Thurs 09:00 - 10:50
Lecture	Offering 1	Week(s) - 5, 6, 8, 9, 10, 11	Thurs 09:00 - 10:50
Tutorial	Offering 1	Week(s) - 6	Thurs 15:00 - 16:50
Tutorial	Offering 1	Week(s) - 7, 9, 10, 11	Tues 09:00 - 10:50
Lecture	Offering 2	Week(s) - 1, 5, 6	Fri 09:00 - 10:50
Lecture	Offering 2	Week(s) - 8, 9, 10, 11	Mon 11:30 - 13:20
Tutorial	Offering 2	Week(s) - 3	Thurs 11:30 - 13:20
Lecture	Offering 2	Week(s) - 5, 6, 8, 9, 10, 11	Thurs 11:30 - 13:20
Tutorial	Offering 2	Week(s) - 6	Thurs 15:00 - 16:50
Tutorial	Offering 2	Week(s) - 7, 9, 10, 11	Tues 11:30 - 13:20
Autumn