MWM022-Corporate Finance

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites: MWM003 Financial Management
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 students to:
• make appropriate investment decisions
• recommend relevant options for financing a business
• recognise and manage financial risks and

On completion of this module, students will be able 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 students 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 sensitivity of an investment decision to changes in the input factors and risk • 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) • the valuation of shares and businesses using income and asset based approaches • different methods of managing interest rate risk and foreign currency risk appropriate to a given situation and determine the cost of hedging that risk


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

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

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

Brief description of teaching and learning methods:
The module uses a blended-learning approach, incorporating self study, face-to-face workshops and online tutor support. Key module content will be delivered in 5 one-day (7-hour) workshops. These workshops comprise a mixture of content delivery, discussion in class and break-out into group sessions.

Contact hours:
  Autumn Spring Summer
Practicals classes and workshops 35
Guided independent study 165
       
Total hours by term 200.00
       
Total hours for module 200.00

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 students to gain the necessary practice. In addition, questions are available on Blackboard and students will practice case study style questions in workshops. Marking guides and feedback are provided where appropriate so that students can assess their own performance.

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy.
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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