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: 2020/1

Module Convenor: Prof Carol Padgett

Email: c.padgett@icmacentre.ac.uk

Type of module:

Summary module description:

This module focusses on corporate value, considering how it is measured and how companies can create value through their strategies, financial decisions and governance practices. 


Aims:

The module aims to offer students a good grounding in corporate finance theory and an appreciation of the related empirical evidence. There will be a focus on shareholder value maximisation and alternative corporate objectives, including a consideration of the impact of ownership and control on those objectives. 


Assessable learning outcomes:

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





  • Explain how and why the ownership and control of companies affects their objectives 




  • Evaluate investment projects 







  • Value companies using discounted cash flows and multiples 




  • Understand and communicate key corporate finance theories relating to capital structure and dividend policy 




  • Understand and communicate the aims and outcomes of acquisitions and divestments  





In addition students have the opportunity to: 





  • Gain experience of using databases 




  • Improve their verbal an d online communication skills 




Additional outcomes:

Outline content:








Ownership and governance of companies 



Value and valuation 



Initial public offerings 



Seasoned equity issues and capital structure 1 

Capital structure 2 



Returning cash to shareholders 



Mergers and acquisitions 1 



Mergers and acquisitions 2 



Divestitures  



 



Global context:

The module uses real-world examples taken from a variety of markets across the world. 


Brief description of teaching and learning methods:

The lectures are used to present theory and evidence, concepts are reinforced and understanding tested in face to face seminars and wikis. Revision webinars are also provided. 


Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 9
Guided independent study:      
    Wider reading (independent) 25
    Wider reading (directed) 50
    Exam revision/preparation 10 34
    Other 2
    Preparation for seminars 14
    Essay preparation 14
    Reflection 22
       
Total hours by term 0
       
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written exam 70
Written assignment including essay 30

Summative assessment- Examinations:

One, 2 hour exam


Summative assessment- Coursework and in-class tests:

One written assignment of 2500 words, submitted in week 5 of the spring term.


Formative assessment methods:

Question sets discussed during the seminars with feedback provided during those seminars and on the Blackboard wiki.


Penalties for late submission:


Assessment requirements for a pass:
40%

Reassessment arrangements:

A 2-hour exam


Additional Costs (specified where applicable):


  1. Required text books (£54)

  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: 27 August 2020

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

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