Note: cannot be taken with BEE3059 Investment Analysis and Portfolio Management 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?
The content of this module takes an international perspective, particularly when considering the financial market, financing and investing decisions.
This module content meets the standards and is accredited by major accreditation bodies, including the ACCA, ICAEW 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|
Cannot be taken with BEA3001 or BEA3008
|Duration of module:||
Duration (weeks) - term 1: |
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 firms 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 Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Assigned work for each tutorial||3 hrs preparation by student / 1 hr in-class discussion||1-13||Suggested solutions|
|Mid-term Mock Exam||1 hour in-class||1, 2, 8-10||Suggested solutions and individual feedback meetings|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Coursework test (MCQ and short-form questions)||20||1 hour||1-10||Suggested solutions; Students be offered opportunity to view scripts; Students who failed to pass will be invited for dedicated help sessions|
|Final exam||80||2 hours||1-10||Suggested solutions; Students be offered opportunity to view scripts|
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|
|Coursework Test & Exam||Exam (100%) 2 hours||1-10||August/September|
Should a re-sit be required for this module, it will be by means of one two-hour examination accounting for 100% module marks [ILOs 1-10]
- Introductory topics
- Time value of money
- Advanced capital investment decisions (uncertainty; replacement 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 recommended purchase texts (from which a number of the self-study assignments will be drawn) are:
- Hillier, D., Ross, S., Westfield, R., Jaffe, J., and Jordan, B. (2010) Corporate Finance,1st EuropeanEdition, London: McGraw-Hill
- Brealey, R.A., Myers, S.C. and Allen, F. (2008) Principles of Corporate Finance, 9th(International)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’, ‘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
ELE - TBC
Indicative learning resources - Other resources
Other materials/sources which you are expected to access/use will be apprised to you during the module.
Last revision date