CORPORATE FINANCE - 2017/8

Module code: ECO3039

Module provider

Economics

Module Leader

DUMITRU A Dr (Economics)

Number of Credits

15

ECT Credits

7.5

Framework

FHEQ Level 6

JACs code

N300

Module cap (Maximum number of students)

N/A

Module Availability

Semester 2

Overall student workload

Independent Study Hours: 128

Lecture Hours: 20

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test CLASS TEST - NUMERICAL AND THEORETICAL QUESTIONS 30%
Examination 2 HOUR EXAMINATION - NUMERICAL AND THEORETICAL QUESTIONS 70%

Alternative Assessment

Not applicable

Prerequisites / Co-requisites

None

Module overview

The module analyses applications of the theory of finance to corporate policy. Broadly defined, this area comprises all operations directed towards the procurement of funds and their investment in the various types of assets.

Module aims

Help students understand the various investment and funding strategies available to firms;

Help students understand the factors that determine the value of the firm. Discuss the importance the firms' capital structure and the implications of various changes to the capital structure.

Analyse various other corporate policies and their implications: dividend policy, tax policy e.c.t.

Learning outcomes

Attributes Developed
Explain and perform investment appraisal CP
Understand the principles of corporate valuation KPT
Understand the rationales and implications of various corporate policies KPT
Problem solving T
Financial market awareness T

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:


Risk and return
Portfolio theory
The capital asset pricing model and the arbitrage pricing theory
Investment criteria and project analysis
Capital budgeting under uncertainty: real options analysis;
Capital structure and the cost of capital;
Valuation and tax policy; 
Dividend policy; 


 

Methods of Teaching / Learning

The learning and teaching strategy is designed to:


enhance skills in capital budgeting and corporate valuation
facilitate a critical analysis of various corporate policies


The learning and teaching methods include:


2 hour lecture per week x 11 weeks
problem sets and solutions to accompany lectures that are posted on SurreyLearn.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate


Knowledge of the key skills required to take investment decisions and corporate valuation.
Ability to analyse and model investment appraisal.
Ability to apply the course’s content to unfamiliar problems.
Discuss real world issues in light of the course’s content.


Thus, the summative assessment for this module consists of:


A mid-term test, lasting 1 hour. Designed to give them practice in investment appraisal and corporate valuation. It is a combination of numerical and theoretical questions, meant to teach students to think about the real world through the lens of what they have been taught.
A final exam, in the style of the previous assessment.


Formative assessment and feedback

Students will receive verbal feedback in classes and office hours through direct questioning and solving exercises together.

They also receive feedback following the class test as I post solutions online and if necessary, go through the correct answers in class.

Reading list

Reading list for CORPORATE FINANCE : http://aspire.surrey.ac.uk/modules/eco3039

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.