IC201-Corporate Finance

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Spring term module
Pre-requisites: IC102 Introductory Finance/Trading Simulation I
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Carol Padgett

Email: c.padgett@icmacentre.ac.uk

Summary module description:
This module considers the important financial decisions made by companies from the point at which they enter the stock market. This includes decisions made regularly with respect to the management of assets and the payment of dividends to shareholders, together with more strategic decisions relating to both capital and organisation structure.

This module is delivered at University of Reading and University of Reading Malaysia.

Aims:
To enable students to understand the drivers of shareholder value and the factors affecting the financial decisions made within the treasury function and by the board of listed companies.

Assessable learning outcomes:
By the end of the module students will be able to value companies and to understand how changes in financial and organizational strategy will change their value. They will be able to explain the impact of financial decisions to a variety of corporate stakeholders.

Additional outcomes:
Class exercises will enable students to improve their research and communication skills.

Outline content:
1. Introduction: the corporate form, objectives and governance
2. Managing short- and long-lived assets
3. Issuing securities: Initial Public Offerings and secondary issues
4. Capital structure 1: the pecking order and Miller-Modigliani theories
5. Capital structure 2: the effects of agency costs and information asymmetries
6. Dividend policy
7. Corporate restructuring: restructuring, value creation and valuation
8. Mergers and acquisitions
9. Private equity
10. Insolvency

Brief description of teaching and learning methods:
Lectures will be used for the exposition of theory. Classes will be used to discuss cases and problem sets.

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 9
Guided independent study 171
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 60
Written assignment including essay 20
Class test administered by School 20

Other information on summative assessment:

Formative assessment methods:

Penalties for late submission:



The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.
  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:

    Requirements for a pass:
    40%

    Reassessment arrangements:
    Re-examination for Part 2 modules takes place in August/September of the same year.

    Additional Costs (specified where applicable):
    1) Required text books: Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B. (2013) Corporate Finance McGraw Hill second European edition, ISBN 9780077139148. RRP £56.99.
    2) Specialist equipment or materials:
    3) Specialist clothing, footwear or headgear:
    4) Printing and binding:
    5) Computers and devices with a particular specification:
    6) Travel, accommodation and subsistence:

    Last updated: 31 March 2017

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