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:
Current from: 2018/9

Module Convenor: Dr Carol Padgett

Email: c.padgett@icmacentre.ac.uk

Type of module:

Summary module description:

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



This module examines the 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 payments to shareholders, as well as strategic decisions about mergers, acquisitions and demergers. There is an emphasis on how these decisions affect the ownership and control of companies.


Aims:

To enable students to understand how financial decisions drive shareholder value and to appreciate why companies may make decisions that are not in the best interests of their owners.


Assessable learning outcomes:

By the end of the module students will be able to use databases, value companies and understand how changes in financial and organisational strategy will change their value. They will be able to explain to stakeholders why corporate financial decisions are important for their well-being.


Additional outcomes:

Students will have the opportunity to improve their communication skills by working in small groups and presenting their findings to their peers.


Outline content:








Ownership and governance of businesses and the way these are changed by specific corporate transactions



Security issues: initial public offerings and further issues



Mergers and acquisitions



Capital structure: theory and evidence



Private equity and leveraged buyouts



Dividend policy: theory and evidence



 



 



Brief description of teaching and learning methods:

Lectures will be used to present and explore theory and evidence. Where appropriate, participation will be encouraged through online quizzes. The accompanying seminars will give students the chance to discuss specific problems and cases.


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

Summative assessment- Examinations:

One, two-hour exam


Summative assessment- Coursework and in-class tests:

One written assignment to be submitted in week 5 of the spring term.



One in-class test held in week 10 of the spring term.


Formative assessment methods:

Seminar questions are assigned for each class. Students should work on them before the seminar then agree answers with a small group during the seminar. Feedback on the agreed answers is offered on the VLE.


Penalties for late submission:


Assessment requirements for a pass:
40%

Reassessment arrangements:

Re-examination will be by a two-hour exam taken during the August re-examination period


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: 20 April 2018

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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