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MNM3G018 - Corporate Finance Elective

MNM3G018-Corporate Finance Elective

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn / Spring / Summer module
Pre-requisites: MNM1G003 Managing Financial Resources
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Mrs Clare Calderan
Email: clare.calderan@henley.ac.uk

Type of module:

Summary module description:

The Corporate Finance elective is designed for those who, having studies MFR, want to know more about the corporate life cycle, how businesses grow and how that growth is financed.  An understanding of some of the key turning points in the life of a corporation from seeking a listing on a stock exchange to restructuring debt and equity financing and acquiring other businesses is a key requirement for anyone hoping to progress to senior roles where siloed knowledge of one’s own area of specialisation is no longer enough to interpret the strategic corporate choices on offer.  To address this, the key topics cover equity and debt structuring, business valuation and mergers and acquisitions.  An understanding of these vital areas of finance will enable managers to participate in and challenge thinking behind expansion and funding strategies.


Aims:








The module is designed for practising managers to enable them to:




  • Appraise the choices for business expansion through organic growth and mergers and acquisitions by challenging the influencing factors

  • Value a business using a variety of techniques

  • Break down the logic behind the funding structure of an organisation from both a theoretical and practical standpoint

  • Distinguish between the major categories of business funding and identify the main products in each category.



 



The key objectives are to:




  • Enable participants to understand the corporate path from listing through to portfolio and financial restructuring

  • Introduce key concepts and theories of deriving a cost of finance for an organisation using relevant corporate finance theory to understand decisions about financial structure.

  • Introduce the key concepts and theories of corporate valuation in relation to mergers and acquisitions

  • Enable participants to develop confidence in discussing corporate actions from a financial and strategic point of view.



 



Intended learning outcomes:



 




  • Understand the relevance of corporate finance and value creation in the corporate life cycle

  • Evaluate the cost of capital and the capital structure alternatives? for a firm

  • Rationalise the strategic decision to undertake mergers and acquisitions

  • Estimate the value of businesses? using a variety of techniques

  • Understand strategic cash flow management and relate this to debt products for listed firms

Assessable learning outcomes:








The assignment is designed to allow you to demonstrate your ability to:




  • select and apply theories, models and frameworks to a specific organisational context in order to develop a critical analysis of the situation

  • critically describe, analyse and evaluate corporate finance decisions using appropriate mo dels and frameworks from the elective, supported by suitable evidence

  • use your analysis to identify and make recommendations that will address the chosen issue/challenge and/or respond to the opportunity

Additional outcomes:


  • Develop an awareness and working financial literacy of the main debt and equity products used by corporates to finance their activities

  • Develop an understanding of the link between borrowing, equity, cash and corporate actions


Outline content:


  • Session 1 – Financial decision making and the corporate life cycle

  • Session 2 - Key financing decisions and their impact on value

  • Session 3 – Mergers and acquisitions

  • Session 4 – Strategic cash flow management and its relation to debt finance for listed organisations

  • Session 5 – Assignment briefing


Global context:

 The module is delivered across the world as an elective module, in various formats of delivery.  Participants are expected to have an interest in shareholder wealth maximising organisations operating in the global marketplace, using a variety of growth and funding mechanisms.  The concepts covered have global applicability.


Brief description of teaching and learning methods:

This is a blended learning study module, comprising an online study guide with core and further readings, supported by practice application exercises and tutor support.  There is also a one-day workshop.


Contact hours:
  Autumn Spring Summer
Practicals classes and workshops 7
Guided independent study:      
    Wider reading (independent) 23
    Wider reading (directed) 14
    Essay preparation 35
    Reflection 21
       
Total hours by term 0 100 0
       
Total hours for module 100

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Summative assessment- Examinations:

N/A


Summative assessment- Coursework and in-class tests:

Individual assignment of 3,500 words which applies theories and frameworks to a specific organisational context in order to develop a critical analysis of the situation. 


Formative assessment methods:

Formative assessments are available in the core text book for all topics in the module to enable programme members to gain the necessary practice. In addition, the module includes a series of practical applications designed to help develop a deeper understanding of module concepts and frameworks by applying them to contexts/problems identified by the programme member. An online discussion forum monitored by a Henley based tutor supports these activities


Penalties for late submission:








The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here: http://www.reading.ac.uk/web/files/qualitysupport/penaltiesforlatesubmissionPGflexible.pdf

The Support Centres will apply the following penalties for work submitted late:




  • where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;

  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.



The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

The pass mark for the individual assignment is 50%.


Reassessment arrangements:

Reassessment by 100% assignment (capped at 50%); to be submitted within 6 weeks of notification of module failure, date dependent on cohort entry and to be advised by the Programme Administrator. 


Additional Costs (specified where applicable):

Last updated: 29 March 2022

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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