Corporate Finance 1

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;
capital structure and the associated cost of capital;
the techniques of asset-backed securitisation.
present and future values;
convertible bonds and their uses;

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.

Study time
Type	Hours
Teaching	24
Independent Study	126
Total study time	150

Resources & Reading list

Textbooks

Brealey, R.A., Myers, S.C. and Allen, F (2011). Principles of Corporate Finance. McGraw-Hill.

Berk, J. and DeMarzo, P (2013). Corporate Finance. Pearson Education, Inc..

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.

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.

Breakdown
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.

Breakdown
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.

Breakdown
Method	Percentage contribution
Closed book Examination	100%

Repeat Information

Repeat type: Internal & External