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Unit information: Corporate Finance and Valuation in 2021/22

Unit name Corporate Finance and Valuation
Unit code EFIM20042
Credit points 20
Level of study I/5
Teaching block(s) Teaching Block 2 (weeks 13 - 24)
Unit director Dr. Li
Open unit status Not open
Pre-requisites

Mathematics for Economics

Probability, Statistics and Econometrics

Financial Markets, Institutions and Instruments

Risk and Return

Co-requisites

Asset Markets

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description including Unit Aims

This unit aims to equip students with the fundamental concepts and tools underlying the Corporate Finance side of modern finance.

The unit identifies the driving forces behind capital structure decisions and choices over debt and equity finance. Students will be exposed to the relevant models of corporate financial policy under market imperfections (taxes, informational asymmetries and agency problems, etc.), and analyse/discuss, among others, the implications of corporate and personal taxes for firms’ capital structure choices, the possible costs of financial distress, the incentives involved in financial decisions and the signalling impact of those for financial market participants. The unit also covers some specific topics in corporate finance, such as mergers and acquisitions, decision to go public, start-up finance, and real-option valuation approach.

Intended Learning Outcomes

On successful completion of the unit, students will be able to:

  1. Analyse the key aspects of valuation and demonstrate understanding of valuation methods including real-option approach
  2. Evaluate the implications of market imperfections for firms’ investment and financing decisions drawing on appropriate theoretical frameworks and empirical evidence
  3. Explain issues and institutional details surrounding corporate activities, such as mergers and acquisitions and security offerings
  4. Critically evaluate arguments and evidence
  5. Demonstrate independent and self-managed learning
  6. Evaluate problems using careful analytical methods.

Teaching Information

22 hours lectures

5 hours exercise lectures

10 hours small group classes

Formative assessment: problem sets will be circulated.

Assessment Information

Summative assessment

2.5 hour closed book examination. This assesses all learning outcomes.

Resources

If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. EFIM20042).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the Faculty workload statement relating to this unit for more information.

Assessment
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. If you have self-certificated your absence from an assessment, you will normally be required to complete it the next time it runs (this is usually in the next assessment period).
The Board of Examiners will take into account any extenuating circumstances and operates within the Regulations and Code of Practice for Taught Programmes.

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