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FINN2041: Corporate Finance

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Type	Tied
Level	2
Credits	20
Availability	Available in 2024/2025
Module Cap	None.
Location	Durham
Department	Finance

Prerequisites

Foundations of Finance (FINN1011)

Corequisites

None

Excluded Combinations of Modules

None

Aims

Provide students with theoretical knowledge and practical understanding of key theories in finance and corporate policy decisions by building on and developing the knowledge and skills acquired at Level 1.
To provide students with a good grounding for undertaking a dissertation in the finance field.
Familiarise students with selected empirical issues and methods of analysis of corporate financial decisions within the broader framework of financial theories.

Content

The following is indicative of the types of area to be covered:
Asymmetric information, agency theory and corporate governance.
Project appraisals and real option analysis
Measures of risk, mean variance analysis and portfolio theory.
The Capital Asset Pricing Model (CAPM), its extensions and Arbitrage Pricing Theory (APT).
Cost of capital
Efficient markets
Long term equity financing.
Capital Structure: Theory and empirical evidence
Dividend and payout policy: Theory and empirical evidence.
Mergers, Acquisitions and Corporate Control.

Learning Outcomes

Subject-specific Knowledge:

Have knowledge and understanding of essential principles of Corporate Finance.

Subject-specific Skills:

Be able to use principles of Corporate Finance to analyse financial issues.

Key Skills:

Written Communication - through summative assessment.
Planning, Organisation and Time Management - e.g. by preparing for examinations.
Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to manipulate concepts in corporate finance, in undertaking assessed work.
Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of class and examination questions

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

Teaching is by lectures and workshops. Learning takes place through attendance at lectures, preparation for and participation in workshops, and private study.
Formative assessment is by means of online test.
Summative assessment is by means of an online multiple-choice test and an in-person written exam.

Teaching Methods and Learning Hours

Activity	Number	Frequency	Duration	Total	Monitored
Lectures	10	1 per week	2 hr	20
Workshops	4	Fortnightly	2 hr	8	Yes
Preparation and Reading				172
Total				200

Summative Assessment

Component: Online Test		Component Weighting: 30%
Element	Length / Duration	Element Weighting	Resit Opportunity
Online Test	1.5 hours	100	same

Component: Examination		Component Weighting: 70%
Element	Length / Duration	Element Weighting	Resit Opportunity
Written in-person exam	2 hours	100	same

Formative Assessment

Online multiple choice test

More information

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