Unit name | Fundamentals of Corporate Finance |
---|---|
Unit code | EFIMM0029 |
Credit points | 15 |
Level of study | M/7 |
Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
Unit director | Dr. Xu |
Open unit status | Not open |
Pre-requisites |
None |
Co-requisites |
None |
School/department | School of Accounting and Finance - Business School |
Faculty | Faculty of Social Sciences and Law |
The unit introduces fundamental concepts in corporate finance. Topics covered include methods of investment project appraisal and factors shaping capital structure and dividend policies. The students are exposed to Modigliani-Miller irrelevance propositions and then study the impact of taxation and distress on financing choices.
Having successfully completed this unit students should be able to;
Discuss and critically evaluate how those core theories hold up in practice.
25 contact hours split between lectures and classes (typically 18 hours lectures, 7 hours classes).
The unit is assessed via a three-hour examination in January. The exam will require students to demonstrate their knowledge and understanding of contemporary issues in corporate finance. It will test student’s ability to interpret, critique and discuss academic literature and theories relevant to the issues raised. Students will be required to answer and analyse quantitative questions. In addition, the exam will test the students’ ability to think critically and communicate effectively in writing under exam conditions. Formative assessment will be undertaken through tutorials, where students will receive verbal and, occasionally, written feedback on their work. In addition to comments on their individual work, a 'model answer' will also be provided in order to inform students of what will be expected of them in the examination.
Hillier, D., Grinblatt, M., and Titman, S. (2012), Financial Markets and Corporate Strategy, Second European Edition, McGraw-Hill.
Brealey, R. A., Myers, S. C., & Allen, F. (2014). Principles of Corporate Finance. Eleventh Global Edition, McGraw-Hill/Irwin.
Berk, J. and DeMarzo, P. (2014). Corporate Finance. Third Global Edition, Pearson.