MNM3CFE-Corporate Finance

Module Provider: Henley Business School
Number of credits: 10 [5 ECTS credits]
Level:NA
Terms in which taught: Autumn / Spring / Summer module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Mrs Alison Hennell

Email: a.hennell@henley.ac.uk

Summary module description:

This module covers important financial decisions made by companies including decisions made with respect to investments and returns to shareholders and decisions relating to capital requirements and risk management. 


Aims:
• To enable programme members to: apply appropriate investment appraisal techniques taking into account other factors affecting investment decisions;
• identify capital requirements of businesses, assess financing options and recommend relevant methods of financing;
• identify the financial risks facing a business and the principal methods of managing those risks.

Assessable learning outcomes:
By the end of the module it is expected that programme members should be able to demonstrate their understanding of and critically evaluate:
• the relevance of corporate finance to management
• principles of capital investment appraisal: including cash flows, the time value of money, the discount rate, terminal values
• the valuation of shares and businesses using income and asset based approaches
• mergers and acquisitions
• how a business can be financed – debt vs equity
• the costs of different sources of finance and the weighted average cost of capital
• the effect of capital gearing both on investors’ perception of risk and reward and the weighted average cost of capital
• the features of different means of making returns to lenders and owners,including dividend policy
• different methods of managing interest rate risk and foreign currency risk appropriate to a given situation

Additional outcomes:
Programme members will also develop team working skills through completion of group work, as well as IT skills and presentation skills.

Outline content:
The key topics covered in this module are:

• Objectives of corporate finance
• Investment appraisal
• Business valuation
• Mergers and acquisitions
• Sources of finance
• Cost of capital
• Capital structure policy
• Dividends and payout policy
• Financial risk management

Brief description of teaching and learning methods:
This is a self study module, comprising an online study guide with core and further readings, supported by practice application exercises, a discussion forum and multi-media learning objects.

Contact hours:
  Autumn Spring Summer
Lectures 7
Guided independent study 93
       
Total hours by term 100.00
       
Total hours for module 100.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Other information on summative assessment:

Formative assessment methods:
Formative assessments are available in the text book for all topics in the module to enable programme members to gain the necessary practice. In addition, the module includes a series of practical applications designed to help develop a deeper understanding of module concepts and frameworks by applying them to contexts/problems identified by the programme member. An online discussion forum monitored by a Henley based tutor supports these activities.

Penalties for late submission:

Penalties for late submission on this module are in accordance with the mode of study arrangements laid out in the programme specification.
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Length of examination:
N/A

Requirements for a pass:
A minimum mark of 50% is required for a University pass.

Reassessment arrangements:
These are in accordance with the arrangements for resubmission laid out in the Programme Specification.

Additional Costs (specified where applicable):
1) Required text books:
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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