| Unit name | Fundamentals of Corporate Finance |
|---|---|
| Unit code | ACFIM0035 |
| Credit points | 20 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Dr. Xu |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
None |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why is this unit important?
This unit is designed to provide students with a solid understanding of the fundamental concepts of corporate finance. The unit covers the primary objectives in decision making, an introduction to financial statement analysis, and the core principles of investment, financing, and dividend decisions. Understanding these principles is essential for evaluating investment opportunities using various capital budgeting methods, comprehending how to optimise a company's financing strategies, and effectively formulating corporate payout policies. Furthermore, this unit provides insights into the main theories of capital structure and dividend payouts, including the Modigliani-Miller propositions, and explores the impact of taxation, financial distress, and some other market imperfections on financing and dividend policies.
How does this unit fit into your programme of study
This unit is designed to provide students with a thorough understanding of both the theoretical and practical aspects of corporate finance. As an essential mandatory module in Teaching Block 1 of the MSc Finance and Investment programme, it fulfils the purpose of familiarising students with key corporate finance knowledge. Furthermore, it provides the necessary foundation for students who intend to select Advanced Corporate Finance in TB2, thereby enhancing their appreciation of corporate finance concepts.
An overview of content
Topics covered include the primary objectives in decision making, an introduction to financial statement analysis, methods of capital budgeting, theories of and factors influencing capital structure and dividend policies.
How will students, personally, be different as a result of the unit
Having successfully completed this unit, students will have developed a solid understanding of the core corporate finance concepts, including capital budgeting, capital structure policies, and corporate payout policies. They will have acquired skills to evaluate investment opportunities and assess the appropriateness of corporate financing and payout strategies.
Learning Outcomes
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, exercise lectures, small group tutorials, and drop-in sessions. Additionally, weekly online quizzes, practice exercise, reading materials, formative assessment feedback, discussion boards and other online learning opportunities will be used to support learning.
Tasks which help you learn and prepare you for summative tasks (formative):
Students will have access to weekly online multiple-choice questions (MCQ) and numerical practice exercises, which support their learning and understanding of the topics covered each week. Students will engage with more challenging questions during the exercise lectures and small group tutorials. In addition, students will be asked to submit answers to tutorial questions in the respective weeks. Tutorial tutors will evaluate their answers and provide feedback. All these activities are designed to not only enhance students’ comprehension of corporate finance theories and mastery of relevant application skills but also help prepare students for the summative assessments.
Tasks which count towards your unit mark (summative):
This unit will be assessed with a 3,000-word individual assignment, accounting for 100% of the overall mark and assessing ILO1, ILO2 and ILO3. The coursework will comprise 2-3 questions blended with both numerical and discursive elements. Students will be required to evaluate investment opportunities using appropriate capital budgeting methods and critical evaluate the capital structure or dividend payout theories.
When assessment does not go to plan
The re-assessment has the same format as the main assessment – a 3,000 words individual assignment assessing ILO1, ILO2 and ILO3.
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. ACFIM0035).
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 University 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. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
