Advanced Corporate Finance
| Module title | Advanced Corporate Finance |
|---|---|
| Module code | BEAM050 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Ms Claire Lavers (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 308 |
|---|
Module description
Summary:
This module has two aims. Firstly, it extends the material covered in BEAM047, introducing students to a number of additional topics in corporate finance theory, including debt financing, mergers and acquisitions and pensions. Secondly, the module illustrates the application of corporate finance theory to practical problems in corporate valuation and strategy, through the use of practical exercises and case studies.
Additional Information:
Internationalisation
This is a theoretical module discussing various aspects of financial theory which is relevant across the world and relates theory to current issues appearing in the news.
Employability
Students will have the opportunity to develop a number of valuable skills, including essay writing, critical thinking, and the ability to apply finance theory to the real-world.
Module aims - intentions of the module
This module has two aims. Firstly, it extends the material covered in BEAM047, introducing students to a number of additional topics in corporate finance theory, including debt financing, mergers and acquisitions and pensions. Secondly, the module illustrates the application of corporate finance theory to practical problems in corporate valuation and strategy, through the use of practical exercises and case studies.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. evaluate real options and default adjusted bond yields;
- 2. discuss the strategic and financial issues involved in agency theory, financial distress prediction, mergers and acquisitions, advanced capital structure and dividend policy;
- 3. explain and discuss the principles of, and the current issues involved in pension funding.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 4. rigorously analyse quantitative problems in finance;
- 5. evaluate and explain competing financial theories of firm and investor behaviour;
- 6. interpret financial data in the light of established theories.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 7. analyse and evaluate quantitative problems;
- 8. explain and discuss competing financial theories and models.
Syllabus plan
- Advanced capital structure I & II
- Financial distress I: debt financing and financial distress prediction
- Financial distress II: estimating default adjusted bond yields
- Dividend policy
- Agency theory
- Pension funding
- Mergers and acquisitions
- Real options
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 33 | 117 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching Activity | 22 | Lectures |
| Scheduled Learning and Teaching Activity | 11 | Tutorials |
| Guided Independent Study | 117 | Reading, preparation for classes and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Mock examination | 1 hour | 1-8 | Model exam paper solutions and feedback during tutorial. |
| Practice short-answer exam questions | Variable | 1-8 | Written individual feedback |
| MCQ | Variable | 1-8 | Correct answers given in end of week quizzes |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In-term test | 30 | 1 hour | 1, 2, 4-8 | Model solutions |
| Final exam | 70 | 1 hour | 1-8 | Suggested solutions and individual feedback upon request |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| In-term test (30%) | Test (30%) (1 hour) | 1, 2, 4-8 | Referral/Deferral Period |
| Final exam (70%) | Exam (70%) (1 hour) | 1-8 | Referral/Deferral period |
Indicative learning resources - Basic reading
Hillier, D. Ross, S. Westerfield, R. Jaffe, J. and Jordan, B. Corporate Finance 2013. 2nd Ed. McGraw Hill.
Benninga, S. 2008. Financial Modelling, 3rd edition, Cambridge
Indicative learning resources - Web based and electronic resources
All lecture and tutorial material is posted on ELE
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | BEAM047 Fundamentals of Financial Management or BEAM072 Principles of Finance. |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 17/07/2014 |
| Last revision date | 25/03/2024 |
