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?
The content of this module takes an international perspective, particularly when considering the function of financial markets.
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|
|Duration of module:||
Duration (weeks) - term 1: |
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 Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled Learning & Teaching activities||22||Lectures|
|Scheduled Learning & Teaching activities||11||Tutorials|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Assigned work for each tutorial||3 hrs preparation by student / 1 hr in-class discussion||1-14||Suggested solutions|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Coursework test (MCQ and short-form questions)||20||1 hour||1-5, 10-14||Suggested solutions; Students be offered opportunity to view scripts; Students who failed to pass will be invited for dedicated help sessions|
|Final exam||80||2 hours||1-14||Suggested solutions; Students be offered opportunity to view scripts|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Coursework Test & Exam||Examination (100%) 2 hours||1-14||August-September|
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]
• 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
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.
ELE – http://vle.exeter.ac.uk/course/view.php?id=XXX
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.
Last revision date