IC201-Corporate Finance

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:5
Terms in which taught: Autumn term module
Pre-requisites: IC102 Introductory Finance/Trading Simulation I
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Miss Dina Ghanma
Email: dina.ghanma@icmacentre.ac.uk

Type of module:

Summary module description:

This module focusses on corporate value: its measurement, and its maximisation through corporate financial decisions, growth strategies, and governance practices. 

Aims:

The module aims to offer students a good grounding in corporate finance theory and an appreciation of the related empirical evidence. There will be a focus on shareholder value maximisation through management decisions relating to capital structure, payout policy, and merger activity. 

Assessable learning outcomes:

By the end of the module students will be able to: 

• Explain how and why the ownership and control of companies affects their objectives


• Discuss key corporate finance theories relating to capital structure and payout policy


• Evaluate investment projects


• Value companies using discounted cash flows and multiples


• Discuss the aims and outcomes of acquisitions and divestments  

Additional outcomes:

• Gain experience of working in groups


• Improve their presentation skills

Outline content:

• Ownership and Governance of Companies


• Capital Structure 1


• Capital Structure 2


• Value and Valuation


• Initial Public Offerings and Seasoned Equity Offerings


• Payout Policy


• Mergers and Acquisitions 1


• Mergers and acquisitions 2


• Divestitures

Global context:

The module uses real-world examples taken from a variety of markets across the world. 

Brief description of teaching and learning methods:

The lectures are used to present theory and evidence. Understanding is tested using practical examples in face-to-face seminars.

Summative assessment- Examinations:

One, 2-hour exam

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

One group project due in Week 2-3 of the Spring Term, consisting of an oral presentation and submission of accompanying files. This project will contain an assessed individual component.

Formative assessment methods:

Question sets discussed during the seminars with feedback provided during those seminars and on Blackboard.

Penalties for late submission:

In line with University of Reading guidelines.

Assessment requirements for a pass:

40%.

Reassessment arrangements:

A 2-hour exam

Additional Costs (specified where applicable):

1. Required textbooks (£54): Corporate Finance, 4th Edition, David Hillier, Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, and Bradford D. Jordan, January 29, 2020. McGraw Hill 


2. Computers and devices with a particular specification: non-programmable calculator

Last updated: 22 September 2022