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MN10311: Corporate finance and investment appraisal

Follow this link for further information on academic years Academic Year: 2018/9
Further information on owning departmentsOwning Department/School: School of Management
Further information on credits Credits: 6      [equivalent to 12 CATS credits]
Further information on notional study hours Notional Study Hours: 120
Further information on unit levels Level: Certificate (FHEQ level 4)
Further information on teaching periods Period:
Semester 2
Further information on unit assessment Assessment Summary: EX 100%
Further information on unit assessment Assessment Detail:
  • Examination (EX 100% - Qualifying Mark: 35)
Further information on supplementary assessment Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Further information on requisites Requisites: Before taking this module you must take MN10476 OR take MN10331
This unit is not available to visiting/exchange students.
Further information on descriptions Description: Aims:
The unit introduces students to the issues involved in a firm's investment and financing decisions. Students will develop a knowledge of new investment appraisal, cost of capital, and the effect of capital structure on the value of the firm. The course will proceed to consider issues such as desirable capital structure, dividend policy, and financial distress. This course provides a basis for (and is a pre-requisite for) the 2nd year Advanced Corporate Finance course.

Learning Outcomes:
By the end of this unit, the student should be able to:
* Analyse investment appraisal problems.
* Estimate a firm's cost of capital.
* Calculate a firm's optimal capital structure in the basic Miller-Modigliani model (with and without tax).
* Describe the issues involved in determining a firm's optimal capital structure.
* Describe the issues involved in determining a firm's optimal dividend policy.

Skills:
Intellectual Skills (T/F/A)
Professional Practical Skills (T/F/A)
Transferable/ Key Skills (T/F/A)

Content:
Time value of money
New Investment Appraisal.
Cost of Capital (WACC, dividend growth and CAPM).
Capital structure and its relation to firm value.
Effect of new projects with different capital structures and risk on firm value.
Dividend policy. Theories and practicalities
Working Capital Management.
Further information on programme availabilityProgramme availability:

MN10311 is Compulsory on the following programmes:

School of Management
  • UMMN-ANB01 : BSc(Hons) Business Administration with Thin sandwich placement(s) (Year 1)

MN10311 is Optional on the following programmes:

Department of Politics, Languages and International Studies
  • UXXX-AYB05 : BSc(Hons) International Management and Modern Languages (French) with Year Abroad (Year 2)
  • UXXX-AYB04 : BSc(Hons) International Management and Modern Languages (German) with Year Abroad (Year 2)
  • UXXX-AYB06 : BSc(Hons) International Management and Modern Languages (Spanish) with Year Abroad (Year 2)

Notes: