CORPORATE FINANCE - 2020/1
Module code: MAN2106
One of the most important decisions in the life of a firm is the financing decision. This module builds on the concepts introduced in Business Finance (FHEQ Level 5) and focuses on the cost of capital and long-term financial policy of the firm. Additionally, the module discusses a range of important topics in corporate finance such as Mergers and Acquisitions.
Surrey Business School
MALEKPOURKOLBADINEJAD Soheila (SBS)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 5
JACs code: N300
Module cap (Maximum number of students): N/A
Overall student workload
Independent Learning Hours: 117
Lecture Hours: 22
Tutorial Hours: 11
Prerequisites / Co-requisites
Students must have completed Business Finance (MAN2089)
Indicative content includes, but not exhausted to:
- Making Capital Investment Decisions
- Project Analysis and Evaluation
- Return, Risk and the Security Market Line
- Cost of Capital - determining a firm’s cost of equity and cost of debt and weighted average cost of capital. Impact of cost of capital on investments
- Raising Capital - (selling securities, rights issues, venture capital market)
- Initial Public Offerings (IPOs)
- Financial Leverage and Capital Structure Policy - the effect of financial leverage. The impact of taxes and bankruptcy on capital structure choice
- Mergers and Acquisitions
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||50 MINUTE MID-TERM TEST (CLOSED BOOK)||30|
|Examination||2 HOUR EXAM (CLOSED BOOK)||70|
The assessment strategy is designed to provide students with the opportunity to demonstrate a number of learning outcomes that are directly related to the topics delivered in various weeks. The assessments are designed to capture learning in all the topics and the summative assessment for this module consists of two parts: the Midterm test (30%) and the Closed-book exam (70%). Both types of examination are designed to assess the student’s ability to comprehend and critically discuss the relevant theoretical concepts. The midterm test will assess students on the theories and practical aspects of the first part of the course and will consist of short questions. The final exam consists of long questions where students have to answer theoretical questions and solve practical problems. This will assess the students in various theoretical and practical competencies in corporate finance.
Formative assessment and feedback
Tutorials provide a platform of frequent feedback in the topics covered preparing, thus, the student for his/her success in the Midterm test and final examination. Additionally, the module offers a platform for students to give and receive feedback via SurreyLearn. Finally, weekly office hours aim to provide additional feedback and assist students with the workload.
- The module aims to develop an understanding of the various aspects of risk/return and costs which are inherent in every financing decision and how these attributes affect the capital structure choice. Further, the module aims to enable students to discuss, analyse, and assess various topics in corporate finance.
|1||Carry out effective investment appraisal by calculating the appropriate discount rate for their investment while understanding the various aspect of risk and return||KCPT|
|2||Discuss about the most important elements of the firm's costs and how to correctly include flotation costs in capital budgeting projects||KCPT|
|3||Explain and critically analyse how securities are sold to the public, what are rights issues and how these are being valued||KCPT|
|4||Evaluate capital structure decisions and the implications on firm value||KCPT|
|5||Critically appraise ‘hot' topics in corporate finance through the understanding of the theoretical background and the empirical and anecdotal evidence||KCPT|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Methods of Teaching / Learning
The learning and teaching strategy is designed to allow students to familiarise themselves with an essential mix of theory and practice of various aspects in corporate finance.
- Weekly one two-hour lecture introducing the topic of discussion
- Weekly tutorial sessions for solving problems and understanding the underlying theory introduced in lectures. Tutorials are an integral part of the module as they provide a critical review and an empirical assessment of each topic
- Lectures and tutorials will be supported by directed reading in selected textbooks and relevant journal articles
- SurreyLearn is used as the main pool of resources including lecture handouts, tutorial problems, and mock test/exams.
- Feedback will be provided on a regular basis during lectures and tutorials as well as during weekly office hours
The learning and teaching methods include:
Total student learning time 150 hours.
- Lectures =22 hours
- Tutorials =11 hours
- Out of class lecture reading =60 hours
- Out of class tutorial reading =30 hours
- Out of class academic journal reading =13 hours
- Out of class relevant magazine/newspapers reading=14 hours
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.
Upon accessing the reading list, please search for the module using the module code: MAN2106
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 2020/1 academic year.