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IC201 - Corporate Finance

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IC201-Corporate Finance

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn term module
Pre-requisites: IC102 Introductory Finance/Trading Simulation I
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Miss Dina Ghanma
Email: dina.ghanma@icmacentre.ac.uk

Type of module:

Summary module description:

This module focusses on corporate value: its measurement, and its maximisation through corporate financial decisions, growth strategies, and governance practices.Ìý


Aims:

The module aims to offer students a good grounding in corporate finance theory and an appreciation of the related empirical evidence. There will be a focus on shareholder value maximisation through management decisions relating to capital structure, payout policy, and merger activity.Ìý


Assessable learning outcomes:

By the end of the module students will be able to:Ìý




  • Explain how and why the ownership and control of companies affects their objectives

  • Discuss key corporate finance theories relating to capital structure and payout policy

  • Evaluate investment projects

  • Value companies using discounted cash flows and multiples

  • Discuss the aims and outcomes of acquisitions and divestmentsÌýÌý



Ìý


Additional outcomes:


  • Gain experience of working in groups

  • Improve their presentation skills


Outline content:


  • Ownership and Governance of Companies

  • Capital Structure 1

  • Capital Structure 2

  • Value and Valuation

  • Initial Public Offerings and Seasoned Equity Offerings

  • Payout Policy

  • Mergers and Acquisitions 1

  • Mergers and acquisitions 2

  • Divestitures


Global context:

The module uses real-world examples taken from a variety of markets across the world.Ìý


Brief description of teaching and learning methods:

The lectures are used to present theory and evidence. Understanding is tested using practical examples in face-to-face seminars.


Contact hours:
Ìý Autumn Spring Summer
Lectures 20
Seminars 9
Guided independent study: Ìý Ìý Ìý
Ìý Ìý Wider reading (independent) 25
Ìý Ìý Wider reading (directed) 40
Ìý Ìý Exam revision/preparation 50
Ìý Ìý Preparation for seminars 16
Ìý Ìý Group study tasks 35
Ìý Ìý Reflection 5
Ìý Ìý Ìý Ìý
Total hours by term 150 0 50
Ìý Ìý Ìý Ìý
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written exam 65
Project output other than dissertation 35

Summative assessment- Examinations:

One, 2-hour exam



The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.


Summative assessment- Coursework and in-class tests:

One group project due in Week 2-3 of the Spring Term, consisting of an oral presentation and submission of accompanying files. This project will contain an assessed individual component.


Formative assessment methods:

Question sets discussed during the seminars with feedback provided during those seminars and on Blackboard.


Penalties for late submission:

In line with °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ guidelines.



Ìý


Assessment requirements for a pass:

40%.


Reassessment arrangements:

A 2-hour exam


Additional Costs (specified where applicable):


  1. Required textbooks (£54): Corporate Finance, 4th Edition, David Hillier, Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, and Bradford D. Jordan, January 29, 2020. McGraw HillÌý

  2. Computers and devices with a particular specification: non-programmable calculator



Ìý


Last updated: 22 September 2022

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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