BE311-5-SP-CO:
Corporate Finance
2019/20
Essex Business School
Colchester Campus
Spring
Undergraduate: Level 5
Current
Monday 13 January 2020
Friday 20 March 2020
15
03 October 2019
Requisites for this module
BE300 or EC111 or IA712
(none)
(none)
(none)
BE329, BE331, BE332, BE335, BE630, BE937
BSC N400 Accounting,
BSC N401 Accounting (Including Foundation Year),
BSC N402 Accounting (Including Year Abroad),
BSC N404 Accounting (Including Placement Year),
BSC N420 Accounting and Finance,
BSC N422 Accounting and Finance (Including Placement Year),
BSC NN43 Accounting and Finance (Including Foundation Year),
BSC NNK3 Accounting and Finance (Including Year Abroad),
BSC N233 Actuarial Science (Including Placement Year),
BSC N323 Actuarial Science,
BSC N324 Actuarial Science (Including Year Abroad),
BSC N325 Actuarial Science (Including Foundation Year),
BSC N390 Banking and Finance,
BSC N392 Banking and Finance (Including Placement Year),
BSC NH90 Banking and Finance (Including Year Abroad),
BSC N300 Finance,
BSC N301 Finance (Including Foundation Year),
BSC N302 Finance (Including Year Abroad),
BSC N304 Finance (Including Placement Year),
BSC GN13 Finance and Mathematics,
BSC GN15 Finance and Mathematics (Including Placement Year),
BSC GN18 Finance and Mathematics (Including Foundation Year),
BSC GN1H Finance and Mathematics (Including Year Abroad),
BSC N344 Finance and Management,
BSC N345 Finance and Management (Including Year Abroad),
BSC N346 Finance and Management (Including Placement Year),
BSC N347 Finance and Management (Including Foundation Year),
LLB MN10 Law with Finance,
LLB MN11 Law with Finance (Including Year Abroad),
LLB MN12 Law with Finance (Including Placement Year)
The purpose of this module is to provide an introduction to corporate financial decision making. The focus is on the two major types of corporate decisions: investment decisions (spending capital) and financing decisions (raising capital). We will also present the fundamental theory of payout policy and capital structure, and introduce option pricing theory as a tool for valuing corporate flexibility. Finally, we review some smaller topics: debt financing, risk management, working capital management, and corporate restructuring.
The module aims to give the students an introduction to the main concepts associated with corporate financial decision making
On successful completion of the module, students will be able to: 1. Understand the concepts of value, net present value, and risk, and how to apply these in financial decision making 2. Understand the process of capital budgeting and the concept of efficient markets 3. Understand the fundamental principles of capital structure and payout policy 4. Understand the fundamental principles of option pricing theory and how to apply these in financial decision making
Skills for Your Professional Life (Transferable Skills)
The students will learn communication skills. Additionally, the students will learn structured problem solving – how to structure a problem and break it down into manageable smaller bits.
1. There will be a double lecture weeks 1 – 6 and 8 – 10. 2. There will be a single tutorial for all students weeks 1 – 10. 3. There will be a fortnightly class for students in smaller groups run by GTAs. You will be informed of which group you belong to and what the dates are for your classes.
- Richard A. Brealey; Stewart C. Myers; Franklin Allen. (2017) Principles of corporate finance, New York, NY: McGraw-Hill Education.
The above list is indicative of the essential reading for the course. The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students. Further reading can be obtained from this module's reading list.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Written Exam |
IN CLASS TEST |
|
|
| Exam |
Main exam: 24hr during Summer (Main Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Dr Norvald Instefjord, email: ninstef@essex.ac.uk.
Dr Norvald Instefjord
ebsugcol@essex.ac.uk
Yes
Yes
No
Dr Apostolos Kourtis
The University of East Anglia
Senior Lecturer in Finance
Available via Moodle
Of 693 hours, 118 (17%) hours available to students:
575 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).
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