Corporate Finance

Module description


Note: cannot be taken with BEE3059 Investment Analysis and Portfolio Management or BEA3008 Finance for Managers

This module provides a thorough treatment, grounded in the academic literature and pertinent for the practitioner, of the following key financial questions which are faced by the directors and managers of firms – in which projects should the firm invest; how should this investment be financed; and how should the financial relationship with providers of finance be managed?

 Additional Information:


The content of this module takes an international perspective, particularly when considering the financial market, financing and investing decisions.

External Engagement

This module content meets the standards and is accredited by major accreditation bodies, including the ACCA, ICAEW and CIMA


Students acquire knowledge in this module, including a solid understanding of basic financial theory, which is highly relevant to jobs related to finance and accountancy. This module also offers an opportunity to develop their numeracy and logical thinking skills.


All of the resources for this course are available on the ELE (Exeter Learning Environment).

Full module specification

Module title:Corporate Finance
Module code:BEA2018
Module level:2
Academic year:2016/7
Module lecturers:
  • Dr Bill Peng - Convenor
Module credit:15
ECTS value:





Cannot be taken with BEA3001 or BEA3008

Duration of module: Duration (weeks) - term 1:


Module aims

This module is designed to introduce students to corporate finance theory and enable them to apply it to main problems faced by financial managers and corporate decision makers. In particular, this module provides a thorough treatment of the key aspects in the financial decision making process in a corporation, including project appraisal under uncertainty, cost of capital, source of finance, capital structure, dividend policy and working capital management.


ILO: Module-specific skills

  • 1. describe, illustrate and compare alternative capital project appraisal techniques
  • 2. derive models for capital budgeting under uncertainty
  • 3. explain short term source of finance and derive models for working capital management
  • 4. describe the long-term source of finance
  • 5. calculate the costs of equity and debt capital
  • 6. explain the capital structure debate; derive and apply relevant models to solve problems in capital structure
  • 7. explain factors that influence a firm’s dividend policy

ILO: Discipline-specific skills

  • 8. interpret financial data in the light of established theories
  • 9. apply and criticise finance models in a ‘real world’ context
  • 10. develop theoretical arguments based on analytical reasoning

ILO: Personal and key skills

  • 11. use information technology for information retrieval and numerical analysis
  • 12. develop teamwork and presentation skills in debating discussion topics and producing team solutions to problems
  • 13. work independently as well as in groups, and develop effective and efficient self-study techniques

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact hours22Lectures
Contact hours10Tutorials
Contact hours10Seminars

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Assigned work for each tutorial3 hrs preparation by student / 1 hr in-class discussion1-13Suggested solutions
Mid-term Mock Exam1 hour in-class1, 2, 8-10Suggested solutions and individual feedback meetings

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Coursework test (MCQ and short-form questions)201 hour1-10Suggested solutions; Students be offered opportunity to view scripts; Students who failed to pass will be invited for dedicated help sessions
Final exam802 hours1-10Suggested solutions; Students be offered opportunity to view scripts

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Coursework Test & ExamExam (100%) 2 hours1-10August/September

Re-assessment notes

Should a re-sit be required for this module, it will be by means of one two-hour examination accounting for 100% module marks [ILOs 1-10]

Syllabus plan


  • Introductory topics
  • Time value of money
  • Advanced capital investment decisions (uncertainty; replacement decisions)
  • Short-term financing and working capital management
  • Long-term source of finance: debt and equity
  • Cost of capital
  • Capital structure: M&M theories
  • Capital structure: alternative views
  • Dividend policy
  • Review session

Indicative learning resources - Basic reading

The module recommended purchase texts (from which a number of the self-study assignments will be drawn) are:

  • Hillier, D., Ross, S., Westfield, R., Jaffe, J., and Jordan, B. (2010) Corporate Finance,1st EuropeanEdition, London: McGraw-Hill
  • Brealey, R.A., Myers, S.C. and Allen, F. (2008) Principles of Corporate Finance, 9th(International)Edition, London: McGraw-Hill.

For wider reading, there are a large number of texts upon the subject areas of this module. Titles such as‘Financial Management’, ‘Finance’, ‘Corporate Finance’, ‘Investments’, ‘Investment Analysis’ and similar may be found in the library and through any good book seller. Having the most up-to-date edition of such books is rarely important.

Module has an active ELE page?


Indicative learning resources - Web based and electronic resources


Indicative learning resources - Other resources

Other materials/sources which you are expected to access/use will be apprised to you during the module.

Origin date


Last revision date