FINN2041: Corporate Finance

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FINN2041: Corporate Finance

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.
• Measures of risk, mean variance analysis and portfolio theory.
• The Capital Asset Pricing Model (CAPM), its extensions and Arbitrage Pricing Theory (APT).
• Corporate Valuation: Present Value Models (Free Cash Flow Valuation) and Multiplier Models (Enterprise Valuation).
• Long term equity financing.
• Capital Structure and the cost of capital: Theory and empirical evidence.
• Real option analysis.
• Dividend policy: Theory and empirical evidence.
• Mergers, Acquisitions and Corporate Control.

Learning Outcomes

• Have knowledge and understanding of essential principles of Corporate Finance.

• Be able to use principles of Corporate Finance to analyse financial issues.

• 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 seminars. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study.
• Formative assessment is by means of an online test.
• Summative assessment is by means of an online test and an online open book examination (2 hours lone) to be taken over a 24-hour window.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Online test which will consist of multiple choice questions, no longer than 1.5 hours in duration.