Programme And Module Handbook
 
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Module Title LM Corporate Finance
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 28950
Module Lead Hisham Farag
Level Masters Level
Credits 10
Semester Full Term
Pre-requisites
Co-requisites
Restrictions None
Contact Hours
Exclusions
Description The Corporate Finance module aims to provide students with an understanding of, and ability to apply the tools and methodologies of contemporary finance theory. The module takes a practical perspective; it is theoretically robust, but rooted in application. The module will build on the introductory Finance and Accounting module to explore the financial decision-making processes of organisations. In so doing the module will look at the role of financial managers and the scope / remit of their decision-making. Financial decision-making takes place against the constraints of the external environment, and so the module will look at these external factors and the impact that they have. Financial decisions are complex, and so the module will explore methods for evaluating and presenting choices in an accessible manner.
Learning Outcomes By the end of the module students should be able to:
  • Analyse the implications of the overarching strategic objectives of the organisation for the finance function and explain the role of the organisation’s financial managers in realising these objectives.
  • Critically evaluate the different sources of corporate finance (e.g. equity, debt, retained earnings etc), and be able to explain the relative advantages and disadvantages of each source.
  • Demonstrate comprehensive knowledge and understanding of how risk and the cost of capital impact on investment appraisal, and explain how such factors affect the value of a capital project.
  • Approximate the organisation’s cost of capital, and understand how this cost is impacted by taxation, “leverage” and other factors.
  • Critically appraise the external and internal influences on a corporation’s capital structure, payout policy and policy in respect of risk management (via insurance, derivatives, and other instruments).
  • Explain and critique how the corporation’s capital structure, payout policy and risk policy impact upon investment decisions.
Assessment
Assessment Methods & Exceptions Assessments:
Group assignments (Presentations, and written reports) – 20%

Individual assignments (3000 words in total) - 80%

Reassessment: 3000 word individual assignment - 100%
Other Delivered at SIM
Reading List