Surrey University Stag

CORPORATE FINANCE & PORTFOLIO MANAGEMENT - 2023/4

Module code: ECO3064

Module Overview

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.

Module provider

Economics

Module Leader

RISPOLI Luciano (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 6

JACs code:

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 85

Lecture Hours: 22

Tutorial Hours: 5

Guided Learning: 38

Module Availability

Semester 2

Prerequisites / Co-requisites

None

Module content

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 pattern

Assessment type Unit of assessment Weighting
Online Scheduled Summative Class Test MIDTERM TEST 30
Examination Online FINAL EXAMINATION 70

Alternative Assessment

n/a

Assessment Strategy

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 content to conduct independent research. Discuss real world issues in light of the course content. Thus, the summative assessment for this module consists of: A mid-term test. A final exam. Formative assessment consists of: A portfolio simulation challenge which students can use to apply the methods and theory studied in class. Formative assessment and feedback Students will receive verbal feedback in tutorials and office hours through direct questioning and solving exercises. They also receive feedback following the midterm test as solutions are posted online and discussed in class after the appropriate University marking period. The portfolio challenge will provide a further chance to gain feedback.

Module aims

  • 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.
  • Analyze various other corporate policies and their implications: dividend policy, tax policy etc
  • Introduce students to principles in portfolio theory and management.

Learning outcomes

Attributes Developed
001 Explain and perform investment appraisal CP
002 Understand the principles of corporate valuation KPT
003 Understand the rationales and implications of various corporate policies CKPT
004 Understand elements of asset allocation CKPT

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 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.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: ECO3064

Other information

This module incorporates some of the University's five pillars of learning as follows: Resourcefulness and resilience: Students in this module will develop their understanding and skills through assessment and feedback in tutorials. Tutorial feedback sessions are designed to provide students with the opportunity to ask question and deepen their understanding of the topics.
Global capabilities: Real life examples will be utilized in this module which will build students global capabilities by providing different perspectives on finance.
Digital capabilities: The use of portfolio simulation software will leverage students' digital skills.
Sustainability: Teaching material and key readings will cover topics in sustainability and green economy. In addition, this module teaches adaptation to changing contexts in terms of technology, institutions, and markets.
Employability: The use of portfolio simulation software will further students' digital skills and employability. This module will provide students with relevant soft skills to prepare them to successfully compete in the labour market and continuing education.

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Business Economics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Economics and Finance BSc (Hons) 2 Compulsory A weighted aggregate mark of 40% is required to pass the module
Economics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module

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 2023/4 academic year.