Module overview
In this module we begin by looking at the types and sources of finance for a company. Next we seek to understand the cost of capital and the major theories that guide us. Next comes sources of long-term finance: capital, debt and hybrid finance. Finally, we study Asset-Backed Securitisation and Covered Bonds which are newer sources of long-term finance.
Aims and Objectives
Learning Outcomes
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- capital structure and the associated cost of capital;
- present and future values;
- companies and their sources of finance;
- convertible bonds and their uses;
- the techniques of asset-backed securitisation.
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- develop logical and concise arguments and engage in independent enquiry grounded in appropriate source material.
- analyse critically theoretical material and case study evidence on the basis of an informed knowledge;
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- Compose and communicate ideas effectively
- Develop clear logical thinking;
Syllabus
- Topic 1: An introduction to Business Finance and Interest rate mathematics
- Topic 2: Cost of Capital and Capital structure
- Topic 3: Sources of long-term finance
- Topic 4: Convertible Bonds
- Topic 5: Asset Backed Securitisation
Learning and Teaching
Teaching and learning methods
Teaching methods include:
- 24 contact hours over a six-week period.
- Lectures are used to introduce and develop knowledge of individual topics.
- Lectures may involve formal lecture using OHP, case studies, with the remaining time being devoted to class exercises.
Learning activities include:
Six 4-hour lectures with the remaining time being devoted to class exercises.
Type | Hours |
---|---|
Independent Study | 126 |
Teaching | 24 |
Total study time | 150 |
Resources & Reading list
Textbooks
Brealey, R.A., Myers, S.C. and Allen, F (2011). Principles of Corporate Finance. McGraw-Hill.
Stone, C.A. and Zissu, A (2012). The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset- backed Securities. Wiley.
Pike, R. and Neale, B (2006). Corporate Finance and Investment (decisions and strategies). FT Prentice Hall.
Berk, J. and DeMarzo, P (2013). Corporate Finance. Pearson Education, Inc..
Brealey, R. Myers, S. and Allen, F (2013). Principles of Corporate Finance. McGraw-Hill.
Watson, D. and Head, A. (2010). Corporate Finance Principles and Practices. FT Prentice Hall.
Moles, P., Parrino, R. and Kidwell, D (2011). Corporate Finance. Wiley.
Assessment
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
Peer assessment
- Assessment Type: Formative
- Feedback: Peer and self-assessment method will be used to help students assess their understanding; exercises, which students will be recommended to attempt by themselves, will be available in lectures or on online blackboard and the answer is available one week after.
- Final Assessment: No
- Group Work: No
Summative
This is how we’ll formally assess what you have learned in this module.
Method | Percentage contribution |
---|---|
Closed book Examination | 100% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
Method | Percentage contribution |
---|---|
Closed book Examination | 100% |
Repeat
An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.
Method | Percentage contribution |
---|---|
Closed book Examination | 100% |
Repeat Information
Repeat type: Internal & External