Advanced Corporate Finance

Module description

 

 

Summary: 

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:

 

Internationalisation 

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.

 

Employability 

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.
 
Sustainability 

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

 

 

 

 

 

Full module specification

Module title:Advanced Corporate Finance
Module code:BEA3024K
Module level:3
Academic year:2016/7
Module lecturers:
  • Dr Fani Kalogirou - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEA1010K

Co-requisites:

None

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

11

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.

 

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. describe the different sources of firm financing
  • 2. calculate the price of fixed income securities
  • 3. estimate the cost of equity and value stocks
  • 4. describe the optimal payout policy
  • 5. evaluate leases
  • 6. evaluate merger and acquisition targets
  • 7. understand the derivatives market and price options
  • 8. use financial derivatives to manage interest rate and foreign exchange rate risks
  • 9. use option theory in investment appraisal

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

  • 13. use information technology for information retrieval and numerical analysis
  • 14. 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
301200

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching activities20Lectures
Scheduled Learning & Teaching activities10Tutorials

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
20800

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 hour1-6, 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
0
0
0
0
0
0
0

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

4Should 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

  • Debt financing and valuation

  • Equity financing and valuation

  • Payout policy

  • Leases

  • Mergers and acquisitions

  • Options and option valuation

  • Derivatives and risk management

  • Real options

  • Revision 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.

ELE – http://vle.exeter.ac.uk/course/view.php?id=

 

Module has an active ELE page?

Yes

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

24/03/2014

Last revision date

17/08/2016