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Unit information: Corporate Finance in 2020/21

Unit name Corporate Finance
Unit code EFIMM0111
Credit points 15
Level of study M/7
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Kim
Open unit status Not open
Pre-requisites

Financial Management (AFM)

Finance (EFM)

Co-requisites

None

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description

This unit aims to provide students with a well-rounded picture of firms’ investment decisions and financing decisions. Building on the basic tools introduced in TB1 pre-requisite units, the unit explores various topics in corporate finance. They include capital budgeting problems, the effect of capital market imperfections on the firms’ investment and financing decisions, the use of real options in project evaluation, mergers and acquisitions, and security offerings. The unit will be delivered via a mix of lectures, tutorials, and exercise lectures, as well as case studies and additional readings where appropriate.

Intended learning outcomes

On successful completion of the unit, students will be able to

(ILO-1) describe main questions of corporate finance, discuss underlying economic theories, and apply numerical techniques to analyse problems.

(ILO-2) discuss the key aspects of project evaluation and demonstrate a good command of valuation methods including real-option approach.

(ILO-3) explain market imperfections and their implications for firms’ investment and financing decisions drawing on appropriate theoretical frameworks and empirical evidence.

(ILO-4) discuss important issues and institutional details surrounding corporate activities, such as mergers and acquisitions and security offerings, and analyse related problems.

Teaching details

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Details

This unit will be assessed by 100% exam

Reading and References

Berk and DeMarzo, 2017, Corporate Finance, 4th Edition, Prentice-Hall

Ross, Westerfield, and Jaffe, 2016, Corporate Finance, 11th Edition, McGraw-Hill

Hillier, Grinblatt and Titman, 2012, Financial Markets and Corporate Strategy, 2nd Edition, McGraw-Hill

Case study materials (to be distributed)

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