Corporate Finance

Module description


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 – Are capital markets efficient (to what extent)? How should investment portfolio be constructed? In which projects should firms invest? How should investments be financed?

Additional Information:


The content of this module takes an international perspective, particularly when considering the function of financial markets.

External Engagement

This module content meets the standards and is accredited by ICAS.


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:BEA3023K
Module level:3
Academic year:2016/7
Module lecturers:
  • Dr Fani Kalogirou - Convenor
Module credit:15
ECTS value:






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


Module aims

This module is designed to introduce students to how asset markets function and how firms should choose and finance their projects, with an aim to enable them to apply their knowledge to the problems faced by modern investors/firms. In particular, this module starts with a thorough examination of key aspects of assets markets, including portfolio theory and the capital asset pricing model (CAPM), and goes on to provide students with the tools they need to evaluate specific investment projects as well as the alternative forms of financing.



ILO: Module-specific skills

  • 1. understand the time value of money
  • 2. appraise investment projects
  • 3. describe the function of asset markets
  • 4. explain the risk-return paradigm for investment analysis and derive models for portfolio theory
  • 5. illustrate and derive factors models (CAPM and APT) and calculate the cost of capital
  • 6. explain the efficiency market hypothesis and its implications for investments
  • 7. evaluate alternative forms of financing in perfect markets
  • 8. evaluate alternative forms of financing in imperfect markets
  • 9. understand the basics of working capital management

ILO: Discipline-specific skills

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

ILO: Personal and key skills

  • 11. use information technology for information retrieval and numerical analysis
  • 12. 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
Scheduled Learning & Teaching activities22Lectures
Scheduled Learning & Teaching activities11Tutorials

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 discussion1-14Suggested solutions

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 hour1-5, 10-14Suggested solutions; Students be offered opportunity to view scripts; Students who failed to pass will be invited for dedicated help sessions
Final exam802 hours1-14Suggested 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 & ExamExamination (100%) 2 hours1-14August-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 1-12]

Syllabus plan

• Time value of money
• Investment appraisal
• Risk and return
• Portfolio theory
• CAPM and Arbitrage Pricing Theory
• Market efficiency
• Capital structure in perfect markets
• Capital structure in imperfect markets
• Working capital management
• Review session

Indicative learning resources - Basic reading

Basic reading:

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

• Berk, J. and DeMarzo, P. (2014) Corporate Finance,3rd(Global) Edition, Essex: Pearson.
• Bodie, Z., Kane, A. and Marcus, A.J. (2011) Investments and Portfolio Management, 9th(Global) 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’, ‘Asset Markets’, ‘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