MWM022-Corporate Finance

Module Provider: ICMA Centre
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:
Current from: 2018/9

Email: c.padgett@icmacentre.ac.uk

Type of module:

Summary module description:

Managers today need a good working knowledge of finance. They need to understand the concepts and jargon to enable them to make internal decisions and to interact externally with stakeholders. It is important that whatever discipline a manager works in they can hold their own in boardroom discussions that are full of financial issues.

This module covers the key decisions that are at the heart of corporate finance and the tools and analyses that are available to ensure that optimal decisions are made. It aims to enable programme members to understand and participate in the vital investing, financing and risk management decisions that all companies have to make.

Aims:

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

Assessable learning outcomes:

On completion of the module, programme members should be able to explain, demonstrate and critically evaluate:

• The principles of capital investment appraisal: including cash flows, the time value of money, the discount rate, terminal values.


• Options for growth including mergers and acquisitions.


• The valuation of shares and businesses using income and asset based approaches.


• How a business can be financed using debt and equity.


• The costs of different sources of finance and the weighted average cost of capital (WACC).


• Capital structure and the impact of gearing both on risk and the WACC


• 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

Additional outcomes:

Programme members will also develop team working skills through completion of group work, as well as IT skills and presentations skills.

Outline content:

Key topics covered in this module are:

• Objectives of corporate finance


• Cost of capital


• Capital structure policy


• Sources of finance


• Dividends and pay out policy


• Business valuation


• Mergers and acquisitions


• Investment appraisal


• Financial risk management

Global context:

The module deals with International issues and gives a global perspective of corporate finance.

Brief description of teaching and learning methods:

This is a blended learning study module, comprising classroom teaching and guided independent study, with core and further readings, supported by practice exercises and tutor support. 

Summative assessment- Examinations:
N/A

Summative assessment- Coursework and in-class tests:

Individual assignment of 6,000 words which applies theories and frameworks to a specific organisational context in order to develop a critical analysis of the situation. Submission date: week 32.

Formative assessment methods:

Formative assessments are available in the core 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 practice questions and case studies designed to help develop a deeper understanding of module concepts and frameworks.

Penalties for late submission:

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

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

Reassessment arrangements:

Students who fail to achieve an overall module pass mark of 50% will be re-assessed by the failed element only, as below.

•         Reassessment by individual assignment (capped at 50%).  Date of resubmission to be advised by Programme Admin 

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: 7 November 2018