CORPORATE FINANCE - 2022/3
Module code: MAN2106
Module Overview
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.
Module provider
Surrey Business School
Module Leader
HAN Liang (SII DUFE)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 5
Module cap (Maximum number of students): N/A
Overall student workload
Independent Learning Hours: 117
Lecture Hours: 22
Seminar Hours: 11
Module Availability
Semester 2
Prerequisites / Co-requisites
NA
Module content
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
- Equity Financing
- Financial Leverage and Capital Structure Policy
- Business Valuation
Assessment pattern
| Assessment type | Unit of assessment | Weighting |
|---|---|---|
| School-timetabled exam/test | CLASS TEST SET TIME AND DATE | 30 |
| Examination | EXAM SET TIME AND DATE | 70 |
Alternative Assessment
Not applicable.
Assessment Strategy
There are two summative assessments for this module: a class test and an end of semester examination.
Class test
The class test will comprise multiple choice questions and/or questions requiring short written answers.
Examination
The exam paper will include scenario questions. Questions may contain several parts (part (a), part (b) etc).
Assessment questions
Assessments will include both quantitative and qualitative questions.
Quantitative questions are designed to assess numerical, application of knowledge and analytical skills.
Qualitative questions will assess application of knowledge, synthesis, creative thinking and problem-solving skills.
Formative assessment and feedback
Formative assessments such as a sample class test and exam paper will be available to support students in preparation for summative assessments and to provide ongoing feedback. Such feedback will help students identify their strengths and weaknesses and help develop revision plans for the summative assessments.
Students are also expected to engage with other feedback provided during seminars and feedback and advice hours throughout the semester.
Module aims
- Enable students to apply and expand on the knowledge brought forward from Business Finance by providing students with further knowledge of various topics in Corporate Finance covering their theoretical concepts as well as their practical aspects.
- Provide students with a clear 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 and capital investment choices.
- Equip students with techniques for business valuation and enable them to use their understanding and insight gained throughout this module to make/evaluate capital investment and sourcing capital decisions.
Learning outcomes
| Attributes Developed | ||
| 001 | Evaluating an appropriate discount rate for investment appraisal decisions taking into consideration various aspects of risk and return. | KCPT |
| 002 | Discuss the most important elements of the firm's costs and how to correctly include flotation costs in capital budgeting projects. | KCPT |
| 003 | Critically appraise how firms use equity financing to finance their operations, how securities are sold to the public, what are rights issues and how they are valued. | KCPT |
| 004 | Evaluate capital structure decisions and the implications for firm value. | KCPT |
| 005 | Discuss the principles of business valuation and perform valuation of companies using different valuation methods. | KCPT |
Attributes Developed
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Methods of Teaching / Learning
The learning and teaching strategy is based on a hybrid teaching model, incorporating elements of both live and on-demand learning.
On-demand learning is designed for students to explore the topics in their own time and includes a range of guided learning activities. Guided learning activities may include pre-recorded videos, practice questions & solutions, quizzes, discussion forum and links to further reading.
Live learning allows students to explore and engage in discussions on the topics, including current developments in the financial markets, and also to practise more complex questions and receive answers and feedback to queries from their tutor.
This learning and teaching strategy provides students with the opportunity to acquire knowledge and to understand the relevant theory in the context of current developments in the financial markets and develop effective solutions for decision making in the context of case study scenarios.
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.
Reading list
https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MAN2106
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 2022/3 academic year.