ICM405: Corporate Finance and Financial Reporting

Module code: ICM405

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 7

When you'll be taught: Semester 1

Module convenor: Dr Xi Li, email: xi.li@icmacentre.ac.uk

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: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

This module aims to offer students an introduction to corporate finance theory and an appreciation of practical applications, including capital budgeting. The module will explore how management decisions relating to financing and payout can affect firm value. Confidence will be built in using financial reports and statements to comment on a firm’s performance and value. 

Module learning outcomes

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

• Discuss key corporate finance theories and practices relating to capital structure and payout policy, and their effect on firm value 
• Use financial reports (annual reports and financial statements) to comment on firm performance and value, and to learn about a company’s ownership and governance 
• Apply the main techniques associated with project/firm valuation and capital budgeting 
• Discuss the limitations of popular valuation and capital budgeting techniques 

Module content

• Corporate Governance and Stakeholder Capitalism 
• Private and Public Equity 
• Capital Structure 
• Payout and Investment Policy  
• Financial Statements 
• Strategic Planning and Budgeting  
• Forecasting  
• Valuation Techniques: Application, Limitations, and Sensitivity Analysis 

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 further tested using practical examples and cases for discussion during seminars. 

Study hours

At least 30 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

50%

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.

Seminar questions are assigned for each class. The seminar leader will facilitate discussion and offer feedback. 

Reassessment

Additional costs