Surrey University Stag

CORPORATE FINANCE AND MARKETS - 2024/5

Module code: MAN2198

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 Financial Planning and Modelling module (FHEQ Level 5) and focuses on the cost of capital and long-term financial policy of a firm.

Module provider

Surrey Business School

Module Leader

DIAS Fabio (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 5

JACs code:

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

Overall student workload

Independent Learning Hours: 80

Lecture Hours: 20

Seminar Hours: 10

Guided Learning: 20

Captured Content: 20

Module Availability

Semester 2

Prerequisites / Co-requisites

N/A

Module content

Indicative content includes, but not exhausted to:
¿ Project Analysis and Evaluation
¿ Return, Risk and the Security Market Line
¿ Cost of Capital
¿ Debt Financing: Capital Markets and Private Funding Sources
¿ Equity Financing
¿ Financial Leverage and Capital Structure Policy
¿ Tax Implications in the Capital Structure Policy
¿ Business Valuation

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test School-timetabled exam/test 50 min 30
Examination Examination 4 hours 70

Alternative Assessment

N/A

Assessment Strategy

Assessment strategy

Assessments will include both quantitative and qualitative questions. Quantitative questions are designed to assess numerical, application of knowledge and analytical skills related to the module content. Qualitative questions will assess application of knowledge, synthesis, creative thinking and problem-solving skills. Students will be expected to demonstrate an adequate level of achievement of the learning outcomes previously described.

There are two summative assessments for this module: a class test and an end of semester examination.

Class test
The class test will comprise of multiple choice questions and/or questions requiring short written answers. The class test will cover only the module content taught during the first half of the module, which is broadly in line with learning outcomes 1, 2 and 3.

Examination
The exam paper will include scenario questions. Questions may contain several parts (part (a), part (b) etc). The exam paper will cover the entire module content.

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 earlier modules by providing students with further knowledge of various topics in Corporate Finance and Capital Market Analysis 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. CKPT
002 Discuss the most important elements of the firm's costs and how to correctly include flotation costs in capital budgeting projects. CKPT
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. CKPT
004 Evaluate capital structure decisions and the implications for firm value. CKPT
005 Discuss the principles of business valuation and perform valuation of companies using different valuation methods. 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 based on a hybrid teaching model, incorporating elements of both live and on-demand learning. Seminars will cover real life examples of situations that require knowledge of capital markets such as business valuation, risk and return profiles and leverage. Lectures will provide the student with a strong theoretical background on all topics of the module content.

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: MAN2198

Other information

Surrey Business School is committed to developing graduates with strengths in Employability, Digital Capabilities, Global and Cultural Capabilities, Sustainability, and Resourcefulness and Resilience. This module is designed to allow students to develop knowledge, skills, and capabilities particularly in the following areas: Global and Cultural Capabilities: The module includes financial modelling applicable to companies across the globe. Students are familiarised with concepts that are standard all over the world with some variations depending on country regulation and/or cultural differences. Students from diverse nationalities and backgrounds are encouraged to interact with one another, share views, and collaborate with one another in class and small groups in a friendly environment. Their intercultural awareness and appreciation of a diversity of culture will be developed via in-class view exchange and collaboration in group tasks. Digital Capabilities: Students are given access to E-learning environment (e.g., SurreyLearn, Microsoft Teams, Zooms) to facilitate their learning. They are encouraged to be familiar with investment tools (e.g., Bloomberg). They will also be made aware of the importance of searching for relevant digital resource to facilitate their learning. Employability: Students are given chance to solve tasks that mimic professional life to understand how finance theories can be applied to real-world business. The cultivation of cultural awareness in this module facilitates their interpersonal skills as well in the future work environment with colleagues and customers from a diverse nationalities and backgrounds. Resourcefulness & Resilience (R&R): The module reinforces and further develops knowledge and skills related to financial modelling. Students solve problems as well as critically analyse the solutions, thereby fostering an openness to different perspectives and developing their own viewpoint. In addition, through the independent and guided learning, students develop attributes such as confidence, adaptability, self-regulation, self-efficacy, problem solving and decision-making abilities.

Programmes this module appears in

Programme Semester Classification Qualifying conditions
International Business Management BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
International Business Management (SII DUFE) BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Business Management BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
International Business Management (Dual degree with SII-DUFE) BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Business Management with Business Analytics BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Business Management with Entrepreneurship and Innovation BSc (Hons) 2 Optional A weighted aggregate mark of 40% is required to pass the module
Business Management with Marketing 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 2024/5 academic year.