Module

Advanced Corporate Finance

Module description

Summary:

This module has two aims. Firstly, it extends the material covered in BEAM047, introducing students to a number of additional topics in corporate finance theory, including debt financing, mergers and acquisitions and pensions. Secondly, the module illustrates the application of corporate finance theory to practical problems in corporate valuation and strategy, through the use of practical exercises and external speakers.

 

Additional Information:

Internationalisation

This is a theoretical module discussing various aspects of financial theory which is relevant across the world, and covers current issues appearing in the news.

External Engagement

In the past we have had visiting speakers. Last year this included an Exeter alumni discussing project finance.

Employability

Students will have the opportunity to develop a number of valuable skills, including essay writing, critical thinking, and the ability to apply finance theory to the real-world.

Full module specification

Module title:Advanced Corporate Finance
Module code:BEAM050
Module level:M
Academic year:2020/1
Module lecturers:
  • Ms Claire Lavers - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

BEAM047 Fundamentals of Financial Management or BEAM072 Principles of Finance.

Duration of module: Duration (weeks) - term 2:

11

Module aims

This module has two aims. Firstly, it extends the material covered in BEAM047, introducing students to a number of additional topics in corporate finance theory, including debt financing, mergers and acquisitions and pensions. Secondly, the module illustrates the application of corporate finance theory to practical problems in corporate valuation and strategy, through the use of practical exercises and external speakers.

ILO: Module-specific skills

  • 1. evaluate real options and default adjusted bond yields;
  • 2. discuss the strategic and financial issues involved in project finance, agency theory, financial distress prediction, mergers and acquisitions, advanced capital structure and dividend policy;
  • 3. explain and discuss the principles of, and the current issues involved in, project finance and pension funding.

ILO: Discipline-specific skills

  • 4. rigorously analyse quantitative problems in finance;
  • 5. evaluate and explain competing financial theories of firm and investor behaviour;
  • 6. interpret financial data in the light of established theories.

ILO: Personal and key skills

  • 7. analyse and evaluate quantitative problems;
  • 8. explain and discuss competing financial theories and models.

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

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
331170

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity22Lectures
Scheduled Learning and Teaching Activity11Tutorials
Guided Independent Study117Reading, preparation for classes and assessments

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Mock examination1 hour1-8Model exam paper solutions and feedback during tutorial.
Practice short-answer exam questionsVariable1-8Written individual feedback
MCQVariable1-8Correct answers given in class

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
In-term test501 hour1, 2, 4-8Model solutions
Final exam501 hour1-8Suggested solutions and individual feedback upon request

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
In-term test (50%)Test (50%) (1 hour)1, 2, 4-8August re-assessment period
Final exam (50%)Exam (50%) (1 hour)1-8August re-assessment period

Syllabus plan

  • Advanced capital structure I & II          
  • Financial distress I: debt financing and financial distress prediction
  • Financial distress II: estimating default adjusted bond yields
  • Dividend policy
  • Agency theory
  • Pension funding
  • Mergers and acquisitions
  • Real options
  • Project Finance (timetable permitting)

Indicative learning resources - Basic reading

Hillier, D. Ross, S. Westerfield, R. Jaffe, J. and Jordan, B. Corporate Finance 2013. 2nd Ed. McGraw Hill.

Benninga, S. 2008. Financial Modelling, 3rd edition, Cambridge

Module has an active ELE page?

Yes

Indicative learning resources - Web based and electronic resources

All lecture and tutorial material is posted on the intranet.

Origin date

17/07/2014

Last revision date

29/09/2020