| Module Identifier |
AC30520 |
| Module Title |
CORPORATE FINANCE |
| Academic Year |
2005/2006 |
| Co-ordinator |
Mr Samir Agnaou |
| Semester |
Semester 2 (Taught over 2 semesters) |
| Pre-Requisite |
AC30420 |
| Course delivery |
Lecture | |
| |
Seminars / Tutorials | |
| Assessment |
| Assessment Type | Assessment Length/Details | Proportion |
|---|
| Semester Exam | 2 Hours | 80% |
| Semester Assessment | 2,000 word essay | 20% |
| Supplementary Exam | 2 Hours | 100% |
|
Learning outcomes
Having completed the module, students will be able to:
-
describe and explain the issues of capital structure, dividend policy and leasing versus purchase policy (and associated matters)
-
describe, derive, interpret and apply models which have been proposed to illuminate these issues
-
solve related numerical problems
-
describe, explain and illustrate the evolution of the debate upon these issues
-
compare and contrast differing opinions and positions in these debates
-
assess and criticise the models
-
relate key financial issues one to another, to associated theory and to the preferences and expectations of key stakeholders
-
select, explain and apply appropriate theory to questions and problems
Aims
The aim of this module is to provide a detailed treatment of the following issues, as faced by the directors and mangers of firms:
-
capital structure
-
dividend policy
-
leasing (versus purchase) policy
-
working capital management
This will be approached by consideration of context in which decisions upon these issues are made; presentation and anlysis of the debates which have surrounded (and continue to surround) them; recourse to the associated theoretic and empirial academic literature; and destruction of the idea of a set of discrete, simple solutions.
Brief description
This module is designed to provide a thorough treatment of the key financial decisions which are faced by the directors and managers of firms.
Outline syllabus
introduction to corporate finance (including agency and signalling theories)
relevant aspects of corporate taxation
capital structure
dividend policy
leasing policy
working capital management
Reading Lists
Books
** Recommended Text
Watson, D and Head, A (2004) Corporate Finance: Principles and Practice
3rd edition. FT Prentice Hall
** Supplementary Text
Neale, B and McElroy, T (2004) Business Finance: A Value-Based Approach
Pearson Education Limited, FT Prentice Hall
Notes
This module is at CQFW Level 6