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: 2023/4

Module Convenor: Dr 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

This module is delivered at the °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ and the °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ Malaysia

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


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


• Evaluate investment projects


• Value companies using discounted cash flows and multiples


• Critically evaluate corporate financial strategies


• Understand and communicate the aims and outcomes of acquisitions and divestmentsÌýÌýÌýÌý

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.

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.

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Assessment requirements for a pass:

40%.

Reassessment arrangements:

A 2-hour exam

Additional Costs (specified where applicable):

1. Required textbooks (£54-60): Corporate Finance, 4th European Edition, David Hillier, Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, and Bradford D. Jordan, 2021. McGraw HillÌý


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

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Last updated: 14 April 2023