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| Module Availability |
| Spring |
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| Assessment Pattern |
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Unit(s) of Assessment
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Weighting Towards Module Mark (%)
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Group Presentation and a Report of 2000 words
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40
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Two hour closed-book examination
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60
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| Module Overview |
| This module is a continuation of earlier Foundation of Finance module and further develops finance for students interested in corporate finance. The module is to demonstrate the link between those various decisions and areas. In particular, we will explore how the firm's financing, investment and payout policies interact with each other and how those decisions have implications for corporate bankruptcy and takeovers. |
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| Prerequisites/Co-requisites |
| None |
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| Module Aims |
| This module aims to provide the theoretical background to fully understand how risk concept is incorporated into corporate capital budgeting, and the cost of capital. It also explores how corporate financing relate to the financial goals of corporations and its implication for corporate bankruptcy and takeovers. This module is designed as a substantial course in corporate finance at Master's level appropriate to a degree in financial studies. |
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| Learning Outcomes |
On successful completion of this module the students will be able to:
- Understand and apply the theory of capital markets and portfolio theory to corporate capital budgeting
- Introduce various sources of finance and cost of capital
- Understand and apply the theory of corporate financing, including capital structure decision, debt management and dividend policy
- Explores how corporate financing relate to the financial goals of corporations and its implication for corporate bankruptcy and takeovers
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| Module Content |
- Capital market and portfolio theory and its implications for corporate risk management
- Risk and corporate capital budgeting
- Source of finance and cost of capital
- Corporate capital structure
- Corporate dividend policy
- Mergers and acquisitions
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| Methods of Teaching/Learning |
The teaching and learning strategy is designed to allow students to come to grips with the essential quantitative nature of the subject and more importantly, to facilitate the application to practical problems
The teaching and learning methods include formal lecture and tutorial to impart theory, use of case studies and exercises to reinforce and test learning and the use of U-Learning to facilitate teaching, enhance the learning outcomes and direct students to the relevant reading in the set textbooks and in journal articles |
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| Selected Texts/Journals |
Recommended
Ross, S.A., Westerfield, R.W. and Jaffe, J.F. (2007), Modern Corporate Financial Management, (8th international edition), McGraw-Hill
Supporting
Copeland, T.E. and J.F. Weston and K. Shestri (2005), Financial Theory and Corporate Policy (4th edition), Addison Wesley.
Buckley, A., Ross, S.A., Westerfield, R.W. and Jaffe, J.F. (1998), Corporate Finance Europe, McGraw-Hill.
Brealey (2005), Principles of Corporate Finance (8th edition), McGraw-Hill.
Other Indicative Reading
Articles and other material from the financial pages of newspapers and academic journals, such as:
- Journal of Finance
- Journal of Financial Economics
- Journal of Financial Research
- The Review of Financial Studies
- Journal of Business Finance and Accounting
- Journal of Business Research
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| Last Updated |
| 22/05/2008 |
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