Skip to main content


Corporate Finance

Module description


Note: cannot be taken with BEE3059 Asset Pricing or BEA3008 Finance for Managers

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 – in which projects should the firm invest; how should this investment be financed; and how should the financial relationship with providers of finance be managed?

Additional Information:


The content of this module takes an international perspective, particularly when considering the financial market, financing and investing decisions.

External Engagement

This module content meets the standards and is accredited by major accreditation bodies, including the ACCA, ICAEW, ICAS and CIMA


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:BEA2018
Module level:2
Academic year:2023/4
Module lecturers:
  • Professor Bill Peng - Convenor
Module credit:15
ECTS value:





Cannot be taken with BEE3059 or BEA3008

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


Module aims

This module is designed to introduce students to corporate finance theory and enable them to apply it to main problems faced by financial managers and corporate decision makers. In particular, this module provides a thorough treatment of the key aspects in the financial decision-making process in a corporation, including project appraisal under uncertainty, cost of capital, source of finance, capital structure, dividend policy and working capital management.

ILO: Module-specific skills

  • 1. describe, illustrate and compare alternative capital project appraisal techniques;
  • 2. derive models for capital budgeting under uncertainty;
  • 3. explain short term source of finance and derive models for working capital management;
  • 4. describe the long-term source of finance;
  • 5. calculate the costs of equity and debt capital;
  • 6. explain the capital structure debate; derive and apply relevant models to solve problems in capital structure;
  • 7. explain factors that influence a firm’s dividend policy.

ILO: Discipline-specific skills

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

ILO: Personal and key skills

  • 11. use information technology for information retrieval and numerical analysis;
  • 12. develop teamwork and presentation skills in debating discussion topics and producing team solutions to problems;
  • 13. 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 and Teaching Activity22Lectures
Scheduled Learning and Teaching Activity10Tutorials
Scheduled Learning and Teaching Activity10Seminars
Guided Independent Study108Reading, research, reflection; Preparation for lectures, tutorials, seminars; Preparation for assessments.

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 discussion1-13Suggested solutions
Mid-term Mock Exam1 hour in-class1, 2, 8-10Suggested solutions and individual feedback meetings

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
In class test201 hour1-5, 8-13Suggested solutions; Students be offered opportunity to view scripts; Students who failed to pass will be invited for dedicated help sessions
Final exam802 hours1-13Suggested solutions; Students will 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
In class test (20%)Individual assignment (2,000 words, 20%) 1-5, 8-13August/September Reassessment Period
Final exam (80%)Examination (2 hours, 80%) 1-13August/September Reassessment Period

Re-assessment notes

Should a re-assessment of the in class test be required for this module, it will be by means of an alternative individual assignment

Syllabus plan

Introductory topics

  • Time value of money
  • Advanced capital investment decisions 
  • Short-term financing and working capital management
  • Long-term source of finance: debt and equity
  • Cost of capital
  • Capital structure: M&M theories
  • Capital structure: alternative views
  • Dividend policy
  • Review session

Indicative learning resources - Basic reading

The module's main recommended texts are:

  • Lumby, S., & Jones, C. (2019). Corporate finance: Theory and practice (10th ed.). Andover: Cengage Learning.
  • Brealey, R., Myers, S. & Allen, F. (2020). Principles of corporate finance (13th ed.). Maidenhead: McGraw-Hill Education.
  • Hillier, D., Ross, S., Westfield, R., Jaffe, J., & Jordan, B. (2020). Corporate finance (4th European ed.). Maidenhead: McGraw-Hill Education.

For wider reading, there are a large number of texts upon the subject areas of this module. Titles such as‘Financial Management’, ‘Finance’, ‘Corporate Finance’, ‘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