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

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

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

Transferable and Generic Skills

Having successfully completed this module you will be able to:

Compose and communicate ideas effectively
Develop clear logical thinking;

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;

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
Independent Study	126
Teaching	24
Total study time	150

Resources & Reading list

Textbooks

Brealey, R. Myers, S. and Allen, F (2013). 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.

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

Pike, R. and Neale, B (2006). Corporate Finance and Investment (decisions and strategies). FT Prentice Hall.

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..

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