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
Transferable and Generic Skills
Having successfully completed this module you will be able to:
- Develop clear logical thinking;
- Compose and communicate ideas effectively
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- analyse critically theoretical material and case study evidence on the basis of an informed knowledge;
- develop logical and concise arguments and engage in independent enquiry grounded in appropriate source material.
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- companies and their sources of finance;
- convertible bonds and their uses;
- the techniques of asset-backed securitisation.
- capital structure and the associated cost of capital;
- present and future values;
Syllabus
- An Introduction to Business Finance.
- Present and Future Values (Time Value of Money).
- Bond and Stock Valuation.
- Cost of Capital and Capital Structure.
- Sources of long-term finance.
- Convertibles, Exchangeables and Warrants.
- Asset 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
Moles, P., Parrino, R. and Kidwell, D (2011). Corporate Finance. Wiley.
Brealey, R.A., Myers, S.C. and Allen, F (2011). Principles of Corporate Finance. McGraw-Hill.
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.
Berk, J. and DeMarzo, P (2013). Corporate Finance. Pearson Education, Inc..
Pike, R. and Neale, B (2006). Corporate Finance and Investment (decisions and strategies). FT Prentice Hall.
Stone, C.A. and Zissu, A (2012). The Securitization Markets Handbook: Structures and Dynamics of Mortgage- and Asset- backed Securities. 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