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IB937 - Corporate Finance

  • Module code: IB937
  • Module name: Corporate Finance
  • Department: Warwick Business School
  • Credit: 10

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

This module aims to provide students with the skills and tools of modern Finance theory that are necessary to critically evaluate decisions of the following types from different angles, ultimately enabling them to reach their own conclusion based on all information available: Capital Budgeting/Investment Decisions- What real assets (or projects) should the firm invest in? Should the firm launch a specific product? How does the firm determine the fair value of a division or company that it wishes to acquire/sell/float on the stock market?; Financing Decisions - How should the firm raise the funds to finance its investment activity? Should the firm sell shares or borrow issuing debt?; Payout Policy Decision- How does the dividend policy affect the value of the firm? What fraction of its profits should the firm pay out to its shareholders?; Risk Management Decisions - What risks should a firm keep and what risks should it pass on? How could a firm use insurance, derivative contracts, and other options to change its risk exposure?

Principal learning outcomes

"Subject knowledge and understanding: Define the objectives of the firm, and explain the role that the financial managers play in achieving these objectives; Define different sources of corporate financing (e.g. retained earnings, debt, equity …), and explain their respective advantages/disadvantages; Identify the factors (e.g. risk, cost of capital …) that affect investment appraisal, and explain how each affects project value; Estimate a firm’s cost of capital, and understand how this changes as a function of leverage, taxation, and other factors; Define the factors that influence the firm’s capital structure and payout policy and risk management policy, and explain how each affects the optimal decisions.Cognitive Skills: Identify the testable implications of a theoretical concept, and assess its validity using empirical analysis; Evaluate and rank in real-word cases the (seemingly conflicting) factors influencing corporate decision-making. Key Skills: Use spreadsheets (e.g. Excel …) to compute the values of projects or securities, and perform risk and sensitivity analyses; Analyze and critically evaluate real-world cases, and communicate the findings either in writing or in a verbal presentation. Use various data sources (e.g. web, publications, databases …) to obtain and analyze financial data. Subject-Specific/Professional Skills: Perform tasks that are involved in corporate financial management."

Timetabled teaching activities

"Total contact hours: 30; Lectures per week: 30; Module duration (weeks, if applicable): 5days Other: Intensive five days of teaching and collaborative group work."

Departmental link

https://my.wbs.ac.uk

Module assessment

Assessment group Assessment name Percentage
10 CATS (Module code: IB937-10)
A (Assessed work only) Assessed Course Work 100%
Assessed Course Work 0%
Assessed Course Work 20%
Assessed Course Work 80%

Module availability

This module is available on the following courses:

Core

N/A

Optional Core

N/A

Optional
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 10
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 2
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 3
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 4
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 5
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 6
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 7
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 8
  • Postgraduate Taught Business Administration (Executive) (N1P9) - Year 9
  • Postgraduate Taught Business Administration (Distance Learning) (N1PR) - Year 2
  • Postgraduate Taught Business Administration (Distance Learning) (N1PR) - Year 3
  • Postgraduate Taught Business Administration (Distance Learning) (N1PR) - Year 4
  • Postgraduate Taught Business Administration (Distance Learning) (N1PR) - Year 5