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MN10311: Corporate finance and investment appraisal

[Page last updated: 05 August 2021]

Academic Year: 2021/2
Owning Department/School: School of Management
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Certificate (FHEQ level 4)
Period:
Semester 2
Assessment Summary: EX 100%
Assessment Detail:
  • Examination (EX 100% - Qualifying Mark: 35)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites: Before taking this module you must take MN10476 OR take MN10331
This unit is not available to visiting/exchange students.
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.

Programme availability:

MN10311 is Compulsory on the following programmes:

School of Management

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:

  • This unit catalogue is applicable for the 2021/22 academic year only. Students continuing their studies into 2022/23 and beyond should not assume that this unit will be available in future years in the format displayed here for 2021/22.
  • Programmes and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
  • Find out more about these and other important University terms and conditions here.