CORPORATE FINANCE - 2019/0
Module code: ECO3039
The module analyses applications of the theory of finance to corporate policy. Broadly defined, this area comprises all operations directed towards the procurement of funds and their investment in the various types of assets.
RISPOLI Luciano (Economics)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 6
JACs code: N300
Module cap (Maximum number of students): N/A
Prerequisites / Co-requisites
Indicative content includes:
- Risk and return
- Portfolio theory
- The capital asset pricing model and the arbitrage pricing theory
- Investment criteria and project analysis
- Capital budgeting under uncertainty: real options analysis;
- Capital structure and the cost of capital;
- Valuation and tax policy;
- Dividend policy;
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||CLASS TEST - NUMERICAL AND THEORETICAL QUESTIONS (1 HOUR)||30|
|Examination||2 HOUR EXAMINATION - NUMERICAL AND THEORETICAL QUESTIONS||70|
The assessment strategy is designed to provide students with the opportunity to demonstrate
- Knowledge of the key skills required to take investment decisions and corporate valuation.
- Ability to analyse and model investment appraisal.
- Ability to apply the course’s content to unfamiliar problems.
- Discuss real world issues in light of the course’s content.
Thus, the summative assessment for this module consists of:
- A mid-term test, lasting 1 hour. Designed to give them practice in investment appraisal and corporate valuation. It is a combination of numerical and theoretical questions, meant to teach students to think about the real world through the lens of what they have been taught.
- A final exam, in the style of the previous assessment.
Formative assessment and feedback
Students will receive verbal feedback in classes and office hours through direct questioning and solving exercises together.
They also receive feedback following the class test as I post solutions online and if necessary, go through the correct answers in class.
- Help students understand the various investment and funding strategies available to firms;
- Help students understand the factors that determine the value of the firm. Discuss the importance the firms' capital structure and the implications of various changes to the capital structure.
- Analyse various other corporate policies and their implications: dividend policy, tax policy e.c.t.
|1||Explain and perform investment appraisal||CP|
|2||Understand the principles of corporate valuation||KPT|
|3||Understand the rationales and implications of various corporate policies||KPT|
|5||Financial market awareness||T|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Overall student workload
Independent Study Hours: 123
Lecture Hours: 22
Tutorial Hours: 5
Methods of Teaching / Learning
The learning and teaching strategy is designed to:
- enhance skills in capital budgeting and corporate valuation
- facilitate a critical analysis of various corporate policies
The learning and teaching methods include:
- 2 hour lecture per week x 11 weeks
- 1 hour feedback sessions on problem sets x 5 weeks
- Solutions to problem sets and other materials to accompany lectures which are posted on SurreyLearn.
Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.
Programmes this module appears in
Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2019/0 academic year.