Module ASB-3200:
Corporate Finance

Module Facts

Run by Bangor Business School

20 Credits or 10 ECTS Credits

Semester 1 & 2

Organiser: Dr Danial Hemmings

Overall aims and purpose

To examine the concepts and principles underlying key financial decisions. To provide an introduction to corporate finance.

Course content

The content may include but will not be limited to; Present value and the opportunity cost of capital; Net present value and alternative methods of investment appraisal; Project analysis; Financial planning, and analysing financial performance; Investment risk and return, and portfolio theory; The Capital Asset Pricing Model; Short-term and long-term financing; Estimating the cost of debt and equity; Weighted average cost of capital; Capital structure, and market imperfections; Dividend policy; Finance for Small and Medium-sized Entities (SMEs).

Assessment Criteria

excellent

A- to A*; Comprehensive and creative understanding of concepts and analytical techniques.

threshold

D- to D+; Basic understanding of key concepts and analytical techniques.

good

B- to B+; Good understanding of key concepts and good analytical skills.

C- to C+

C- to C+; Broad and sound understanding of key concepts and analytical techniques.

Learning outcomes

  1. Critically understand the nature and implications of risk and return in corporate finance.

  2. Fully understand the portfolio concept in finance, and implications on corporate financing decisions.

  3. Apply techniques for financial valuation and rules for capital investment.

  4. Appraise financial performance.

  5. Critically understand the nature and implications of alternative long-term financing decisions.

Assessment Methods

Type Name Description Weight
REPORT Semester 2 assignment

1,500 word individual assignment in the form of a report.

30
COMPREHENSION TEST Semester 1 Online Test

Online test consisting of multiple choice questions.

10
EXAM Semester 1 Formal Examination 1.5 hours

1.5 hour closed-book exam at the end of semester 1.

30
EXAM Semester 2 Formal Examination 1.5 hours

1.5 hour closed-book exam at the end of semester 2.

30

Teaching and Learning Strategy

Hours
Lecture

One 2-hour lecture per week.

40
Private study

A minimum of 160 hours of private study is advised.

160

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Numeracy - Proficiency in using numbers at appropriate levels of accuracy
  • Information retrieval - Able to access different and multiple sources of information
  • Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting

Subject specific skills

  • knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
  • Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
  • An appreciation of the nature of the contexts in which finance can be seen as operating, including knowledge of the institutional framework necessary for understanding the role, operation and function of markets and financial institutions (e.g. the economic, legal, regulatory and tax environment, both national and international; the firm; the capital markets and the public sector).
  • A knowledge of the major theoretical tools and theories of finance, and their relevance and application to theoretical and practical problems (e.g. concept of arbitrage and examples of its use; financial mathematics and capital budgeting criteria; informational efficiency; optimal risk sharing; portfolio theory; asset pricing models and the valuation of securities; cost of capital; derivative pricing; risk management; information asymmetry; principal agency relationships; signalling; Fisher separation and capital budgeting criteria; behavioural finance; term structure and the movement of interest rates; determination of exchange rates and financial intermediation).
  • An understanding of the financing arrangements and governance structures of business entities, and an appreciation of how theory and evidence can be combined to assess the effectiveness and efficiency of such arrangements (e.g. decisions as to sources of finance and financial structure; the pricing of corporate securities; the market for corporate control; corporate governance structures and mechanisms; financial planning and international dimensions of finance).
  • Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
  • Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.

Resources

Reading list

Same reading list as ASB-2202: http://readinglists.bangor.ac.uk/modules/asb-2202.html

Courses including this module