IC201: Corporate Finance

Module code: IC201

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: Level 2 (Intermediate)

When you'll be taught: Semester 1

Module convenor: Dr Dina Ghanma, email: dina.ghanma@icmacentre.ac.uk

Module co-convenor: Dr Yoke Yue Kan, email: y.y.kan@henley.edu.my

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: na

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 28 May 2024

Overview

Module aims and purpose

This module focusses on corporate value: its robust measurement, and its prudent maximisation through corporate financial decisions, growth strategies, and good governance practices. The module aims to offer students a solid grounding in corporate finance theory and an appreciation of the related empirical evidence and practical application. There will be a focus on shareholder value maximisation through management decisions relating to capital structure, payout policy, and merger activity.

The module lead at the University of Reading Malaysia is Dr Yoke Yue Kan.

Module learning outcomes

By the end of the module, it is expected that students will be able to:

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

• Critically evaluate key corporate finance theories and practices relating to capital structure, payout policy, mergers and acquisitions, and divestitures

• Value companies using discounted cash flows and multiples

• Develop their careers-oriented skills (incl. group work and presentation skills) in a simulated professional setting (project)

Module content

Module content

1. Ownership and Governance of Companies
2. Capital Structure
3. Value and Valuation
4. Initial Public Offerings and Seasoned Equity Offerings
5. Payout Policy
6. Mergers and Acquisitions
7. Divestitures

Structure

Teaching and learning methods

The lectures are used to present theory and evidence, with interactive checkpoints to gauge understanding and survey opinions. Understanding is tested using practical examples in seminars.

This module may be taught in a different Semester if you are studying at our campus in Malaysia.

For students studying at our campus in Malaysia: This module may be taught in a different semester and the breakdown of study hours may differ to those set out in the Study Hours table (please refer to the Module Handbook for the correct breakdown). In addition, you will be required to complete an additional 40 hours of study, taking the total number of study hours to 240 for this module. This is to comply with the Malaysian Quality Agency (MQA).

In addition to the total 200 hours, students studying at the Malaysian campus will be required to complete an additional 40 hours of independent study totalling 240 hours of student learning time per semester per module in compliance with the Malaysian Quality Agency (MQA). The breakdown of study hours may differ at the Malaysian campus. For further details please refer to the module handbook.

Study hours

At least 27 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

40%

Summative assessment

Penalties for late submission of summative assessment

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

Assessments with numerical marks

• 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 three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/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.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Instructor-led workshop where students peer-mark a mock exam in line with a solutions guide (revision session).

Exam-style question sets discussed during seminars with feedback provided during class and on Blackboard.

Reassessment

Additional costs