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: 2019/0

Module Convenor: Dr Carol Padgett

Email: c.padgett@icmacentre.ac.uk

Type of module:

Summary module description:

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



The 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 face-to-face and online communication skills. 


Outline content:








Ownership and governance of companies 



Security issues: Initial Public Offerings and further offerings 



Mergers and acquisitions 



Capital structure: theory and evidence 



Private equity and leveraged buyouts 



Dividend policy: theory and evidence 



 



 



Global context:

The recommended reading and the examples used in the lectures reflect a range of practice from around the world. 


Brief description of teaching and learning methods:

Lectures will be used to present and explore theory and evidence. Seminars will be used to discuss problem sets and cases. 


Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 9
Guided independent study:      
    Wider reading (independent) 25
    Wider reading (directed) 45
    Exam revision/preparation 45
    Other 2
    Preparation for seminars 10
    Revision and preparation 13
    Essay preparation 16
    Reflection 15
       
Total hours by term 0 200 0
       
Total hours for module 200

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:

Questions are assigned for each seminar. Students are encouraged to record their answers on the wiki where the module convenor gives feedback which supplements the feedback offered by the teaching assistant during the seminar itself. 


Penalties for late submission:


Assessment requirements for a pass:
40%

Reassessment arrangements:

One, 2-hour resit exam. 


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 £60.99. 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: 16 April 2019

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

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