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: | 2023/4 |
| Module lecturers: |
|
| 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 Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 33 | 117 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching Activity | 22 | Lectures |
| Scheduled Learning and Teaching Activity | 11 | Tutorials |
| Guided Independent Study | 117 | Reading, preparation for classes and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Mock examination | 1 hour | 1-8 | Model exam paper solutions and feedback during tutorial. |
| Practice short-answer exam questions | Variable | 1-8 | Written individual feedback |
| MCQ | Variable | 1-8 | Correct answers given in class |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In-term test | 50 | 1 hour | 1, 2, 4-8 | Model solutions |
| Final exam | 50 | 1 hour | 1-8 | Suggested solutions and individual feedback upon request |
| 0 | ||||
| 0 | ||||
| 0 | ||||
| 0 |
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 |
|---|---|---|---|
| In-term test (50%) | Test (50%) (1 hour) | 1, 2, 4-8 | August re-assessment period |
| Final exam (50%) | Exam (50%) (1 hour) | 1-8 | August 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