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 and 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:2016/7
Module lecturers:
  • Ms Claire Lavers - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

BEAM047 Fundamentals of Financial Management

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. evaluation of real options and default adjusted bond yields
  • 2. understand the strategic and financial issues involved in project finance, agency theory, financial distress prediction, mergers and acquisitions, advanced capital structure and dividend policy
  • 3. understand 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. understand and explain 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
Contact hours22Lectures
Contact hours11Tutorials
Contact hours10Review class (optional)

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Mock examination2 hours1-8Model 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
Final exam1002 hours1-8Model exam paper solutions and individual verbal feedback, upon request.
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
ExaminationExamination (100%) 2 hours1-8Aug/Sep

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

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 Modeling, 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

14/08/2016