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MN20211: Advanced corporate finance

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: Intermediate (FHEQ level 5)
Further information on teaching periods Period:
Semester 2
Further information on unit assessment Assessment Summary: EX 100%
Further information on unit assessment Assessment Detail:
  • Exam (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 MN10311 OR take MN10669 ) AND ( take MN20026 OR take MN20502 )
In taking this module you cannot take MN20503
Further information on descriptions Description: Aims:
As its name suggests, this unit builds upon and extends from more elementary finance courses. It provides in-depth consideration and rigorous treatment of a number of corporate finance topics, including: investing the firm's resources; funding the firm's activities; capital structure; payout policy; and mergers and acquisitions. From a foundation in theory, we use discursive and numerical approaches to unlock these fascinating areas. The themes of value, return and risk run throughout the unit.

Learning Outcomes:
On completion of this unit, students should be able, commensurate with their advanced stage of UG study, to:
1. Describe, explain and illustrate: decision trees, real options and adjusted present value in the context of capital investment decisions; cost of capital and the capital structure question; the payout policy question; business combinations/ restructuring; the characteristics and attributes of more advanced debt instruments; and hedging.
2. List, describe, explain, illustrate, compare and contrast: alternative techniques for investment appraisal; different forms of real option; different sources of finance; different approaches to the capital structure question; various impactors on payout policy and different approaches to the payout policy question; alternative forms of business combination/restructuring; different debt instruments; and alternative means of risk management and hedging.
3. Cite, explain, select and apply appropriate theory and models to solve related questions and numerical problems.
4. Derive, assess and criticize selected finance models.
5. Integrate different forms of analysis in order to generate a well-reasoned and holistic assessment of investment, funding and risk management opportunities.

Skills:
On completion of this unit, students should have developed, commensurate with their advanced stage of UG study, in the following skills areas:
1. Problem Solving:
* Identify the precise problem to be solved
* Assess which data are pertinent to the problem
* Recognize that alternative solution methods might be available
* Select and apply appropriate methods for solving the problem
* Assess the reasonableness of problem solutions and interpret those solutions
2. Research skills:
* Identify which information sources are available to facilitate module study (understanding, wider reading); and provide examples/illustration of unit topics in a real world context
* Properly reference/attribute information sources
3. Communication:
* Develop confidence in and clarity of oral communication via help class participation
* Develop clarity and focus of written communication via development of answers to self-study questions
* Develop and use appropriate advanced subject-specific vocabulary in oral and written communication
4. Information technology:
* Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information
* Use spreadsheet software to complete elements of the self-study (e.g., for ease of tabulated numerical calculations, production of summary statistics, etc.)
5. Application of number/mathematics:
* Develop an easy familiarity with numerical and financial data
* Develop competence in understanding and appropriately applying financial mathematics and complex financial mathematical formulae
* Apply numerical data to problem solving with care and accuracy
* Assess the reasonableness of and interpret numerical solutions
* Support assertions/arguments with appropriately developed and presented numerical data
* Calculate and use descriptive statistics
6. Personal development and career planning
* Develop an understanding of and skills in finance which are useful/essential in a number of different occupations
* Identify a variety of potential career opportunities within the financial and professional services sectors

Content:
1. Review of investment appraisal teechniques and financial/rate arithmetic
2. Real options
3. Debt, equity and cost of capital
4. Capital structure
5. Payout policy
6. Mergers and acquisitions
7. More on debt
8. Hedging.
Further information on programme availabilityProgramme availability:

MN20211 is Compulsory on the following programmes:

School of Management
  • UMMN-AFB02 : BSc(Hons) Accounting and Finance (Year 2)
  • UMMN-AKB02 : BSc(Hons) Accounting and Finance with Year long work placement (Year 2)

MN20211 is Optional on the following programmes:

School of Management
  • UMMN-ANB01 : BSc(Hons) Business Administration with Thin sandwich placement(s) (Year 4)
Department of Politics, Languages and International Studies
  • UXXX-AYB05 : BSc(Hons) International Management and Modern Languages (French) with Year Abroad (Year 4)
  • UXXX-AYB04 : BSc(Hons) International Management and Modern Languages (German) with Year Abroad (Year 4)
  • UXXX-AYB06 : BSc(Hons) International Management and Modern Languages (Spanish) with Year Abroad (Year 4)

Notes: