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:
Current from: 2018/9

Module Convenor: Dr Gianluca Marcato

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

Type of module:

Summary module description:

The module presents concepts of real estate finance both theoretically and empirically. It can be seen as a course in corporate finance (funding and valuation) applied to real estate topics. It is particularly relevant for investment appraisal because it presents models to determine the discount rate in real estate investment decisions and it reconcile types of cash flows and discount rates to obtain investment values.


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. 

  • 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 and to 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. In particular they will understand the forms of financing available to real estate companies/funds and their relative costs. Finally, students will be able to apply formal models to determine discount rates to be used in investment appraisal.


Additional outcomes:

Students will have improved their analytical and presentational skills through the preparation and discussion of case studies.

There will also be opportunities to improve their IT, and specifically, their spreadsheet skills.


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. Modelling of cost of financing. Understanding company accounts, identifying capital structure and the role of real estate in influencing capital structure. Application of lease or buy decision analysis.


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

Summative assessment- Examinations:
None

Summative assessment- Coursework and in-class tests:

5th November 2018 – Term 1 – Week 6



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:

Students will receive feedback on the work they produce during the week delivery. Plus there will be opportunities of feedback on the actual assignment via conference calls. The in-class feedback will be done through practical sessions (workshops) where they can compare their work with a proposed solution and ask questions to develop their knowledge further. In some workshops they may also be asked to present their work to facilitate the discussion.



 


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


Assessment 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.

Additional Costs (specified where applicable):

No Additional Costs


Last updated: 31 July 2018

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

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