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MN20211: Advanced corporate finance

Follow this link for further information on academic years Academic Year: 2013/4
Further information on owning departmentsOwning Department/School: School of Management
Further information on credits Credits: 6
Further information on unit levels Level: Intermediate (FHEQ level 5)
Further information on teaching periods Period: Semester 2
Further information on unit assessment Assessment: EX 100%
Further information on supplementary assessment Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Further information on requisites Requisites: Before taking this unit you must take MN20026
Further information on descriptions 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).
Further information on programme availabilityProgramme 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
Department of Politics, Languages and International Studies
  • UXXX-AYB05 : BSc (hons) International Management and Modern Languages (French) (Full-time with Year Abroad) - Year 4
  • UXXX-AYB04 : BSc (hons) International Management and Modern Languages (German) (Full-time with Year Abroad) - Year 4
  • UXXX-AYB06 : BSc (hons) International Management and Modern Languages (Spanish) (Full-time with Year Abroad) - Year 4

* This unit catalogue is applicable for the 2013/4 academic year only. Students continuing their studies into 2014/15 and beyond should not assume that this unit will be available in future years in the format displayed here for 2013/14.
* Programmes and units are subject to change at any time, 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.