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School of Management, Unit Catalogue 2011/12

MN20211: Advanced corporate finance

Click here for further information Credits: 6
Click here for further information Level: Intermediate (FHEQ level 5)
Click here for further information Period: Semester 2
Click here for further information Assessment: EX 100%
Click here for further information Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Click here for further information Requisites: Before taking this unit you must take MN20026
Click here for further information Description: Aims:
In addition to the theoretical issues, students will gain an understanding of the practical issues involved in a firm's investment and financing decisions. Students will analyse issues relating to new investment appraisal (particularly decision trees, risk analysis, and real options), cost of capital (CAPM versus APT), and the effect of capital structure on firm value (particularly the effects of managerial incentives and signalling on a firm's financing decisions). The course will then proceed to consider convertible debt, and optimal risk management policies.

Learning Outcomes:
By the end of this unit, the student should be able to:
* perform numerical analyses of investment appraisal and capital structure decisions;
* discuss the results of the aforementioned analyses;
* write management-style reports recommending optimal investment and financing policies, considering all of the issues involved.

Intellectual skills:
* the ability to perform investment appraisal and capital structure techniques. TFA
* the ability to assess mergers and takeovers. TFA
* the ability to price options. TFA
Professional/practical skills
* the ability to present corporate finance decisions to management. TFA
Transferable/key skills
* the ability to apply financial techniques to management decisions. TFA
* the ability to communicate information regarding complex financial decisions to users of such information. TFA

New investment appraisal.
Cost of capital, capital structure, and firm value.
Optimum capital structure, with regard to tax, agency costs, and signalling.
Convertible debt.
Risk management.
Dividend policy.
Analysis of distressed companies.
(A recommended complementary course, which analyses pricing issues is Introduction to Finance and Financial Markets).
Click here for further informationProgramme availability:

MN20211 is Compulsory on the following programmes:

School of Management
  • UMMN-AFB02 : BSc (hons) Accounting and Finance (Full-time) - Year 2
  • UMMN-AKB02 : BSc (hons) Accounting and Finance (Full-time with Thick Sandwich Placement) - Year 2

MN20211 is Optional on the following programmes:

School of Management
  • UMMN-ANB01 : BSc (hons) Business Administration (Full-time with Thin Sandwich Placements) - Year 4

NB. Programmes and units are subject to change at any time, in accordance with normal University procedures.