REMB31-Corporate Finance

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Gianluca Marcato

Email: g.marcato@henley.reading.ac.uk

Summary module description:

By the end of the module students will be able to:



Understand how financial issues influence decisions involving real estate within the firm.



Analyse the capital structure of a firm and its weighted average cost of capital.



Understand the problems that have to be overcome if real estate is to be treated on the same basis as other assets that are managed by companies.


Aims:
By the end of the module students will be able to:
Understand how financial issues influence decisions involving real estate within the firm.
Analyse the capital structure of a firm and its weighted average cost of capital.
Understand the problems that have to be overcome if real estate is to be treated on the same basis as other assets that are managed by companies.
Understand concepts of market efficiency as applied to property and the different approaches that can be taken to incorporate market perspectives into real estate management and decision making.
Describe the contribution of options, both real and financial, to management decision-making techniques.
Critically discuss the choices of target return required for real estate investments. Understand the forms of financing available to real estate companies and relative costs.

Assessable learning outcomes:
By the end of the module, students will demonstrate understanding of how financial issues influence decisions involving real estate within the firm. They will show awareness of the problems that have to be overcome if real estate is to be treated on the same basis as other assets that are managed by companies. They will be able to extract information from company accounts. In particular, they will understand the concepts of market efficiency as applied to property and the different approaches that can be taken to incorporate market perspectives into real estate management and decision making. They will also appreciate the contribution of options, both real and financial, to management decision-making techniques and will be able to value a traded option and understand how real options are modelled. Finally they will understand the forms of financing available to real estate companies and their relative costs.

Additional outcomes:
Students will have improved their presentational skills through the preparation for the presentation of the case study analyses.
There will also be opportunities to improve their IT, and specifically, their spreadsheet skills.
Tutorial help will be available to ensure that all students reach a professional understanding of the value of spreadsheet analysis to their decision-making.

Outline content:
Approaches to investment appraisal using financial techniques, capital budgeting and the use of the Weighted Average Cost of Capital. Financing decisions using different techniques to deal with property and other assets. How capital is raised and what the implications are for company decision makers. Understanding company accounts, identifying capital structure and the role of real estate in influencing capital structure. The relationship between the property market and the property owned or used by firms and the difficulties of linking the information about the two very different market environments. Evidence of the link between property value and the market value of firms drawn from the performance of property companies, measurement of property market behaviour. The lease or buy decision: whether to own (buy) or rent (lease) property. Aspects of international finance, showing how financial decisions faced by companies are altered when viewed internationally. Options, financial and real and their application to real estate financial decisions.

Brief description of teaching and learning methods:
The course will be delivered as a block release with on-line post course support. The block release teaching will comprise lecture, seminars, presentations and problem solving computer workshops. Following the block session, further help will be provided via Blackboard. Assessment will include a multiple-choice test set during the module week.

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 10
Guided independent study 170
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Report 80
Class test administered by School 20

Other information on summative assessment:

20% of the assessment will be in the form of multiple-choice test during the module week.

The remaining 80% will be a management report which will usually involve the student applying some aspect of the course to the individual's workplace or a relevant listed public company. This will include analytic, quantitative work and has a word guide of 3000 words.



As this is a core Module of Special Significance, any student joining the programmes from September 2012 must achieve a mark of at least 40 in order to be awarded the MSc.


Formative assessment methods:

Penalties for late submission:

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



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:
None

Requirements for a pass:
50%

Reassessment arrangements:
Single Project Assignment which will achieve a maximum mark of 50.
Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate.

Last updated: 25 July 2017

Letter 'IPO.MODCAT1STKT' - Generation started at 25/Jul/2017 16:16:07.35.

Things to do now