CORPORATE FINANCE AND FINANCIAL STRATEGIES

SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N325646
Module Leader n/a
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)

Pre-Requisite Knowledge

Fundamentals of Corporate Finance or equivalent

Summary of Content

The rationale for this module is to build on the concepts explored in Fundamentals of Corporate Finance module by further development of major investment and financial decisions faced by corporate financial managers. These decisions will impact upon any professional within the corporate environment and thus an understanding of the main issues is important in future professional environments. The module will consider issues such as financial ratios, the valuation of bonds and shares, estimating an appropriate discount rate for investment appraisal, risk-return trade-off, international financial management and derivative products (options, futures and forwards).

Syllabus

-360 1. Financial statement analysis 2. Bond valuation 3. Stock valuation 4. Project valuation techniques 5. Introduction to risk, return and opportunity cost of capital 6. Capital asset pricing model 7. Weighted-average cost of capital 8. International financial management 9. Derivatives: options, futures forwards

Learning Outcomes

On successful completion of this module, the student should be able to:1. Understand the objectives of the firm;2.Calculate and critically use the financial ratios;3.Calculate the value of bonds and shares;4.Understand the relationship between the risk and return;5.Critically evaluate the theoretical and practical issues involved in corporate financial structure;6.Appreciate the application of derivative products in firms’ risk hedging and international financial management.

Teaching / Learning Strategy

The module provides a combination of lectures, seminars, and project based student activity. Each week will be devoted to learning a topic in increasing depth. Students may also be asked to present their views to class for general discussion. Where appropriate, web-based material will be used to complement the lectures. There will be weekly seminars, based on directed learning provided in advance of the seminars, which will use a range of approaches to embed the learning outcomes for each week. This will include written and oral submissions. Students are expected to keep up to date with the relevant reading and to attempt seminar questions prior to the seminar, where they will be asked to participate and present solutions. Students will be continuously encouraged to read financial press and will be equipped with guidance and tips on how to understand the financial pages of the media. GCU Learn and blended learning tools will enhance the overall students' engagement, learning experience and provide a two-way ongoing feedback between the students and the module leader/tutors. Use of discussion boards on GCU Learn will facilitate the discussion and feedback on assessments. Guest speakers will provide insights into the practical application of studied topics on corporate level. The " Best Investor " active portfolio management will assess the students' ability to apply the modular content into making investment decisions. Summative feedback will be used to identify through the module areas for improvement and development of the student. Such feedback will be provided within the GSBS guidelines within 3 working weeks of submission .

Indicative Reading

Core textbook: Brealey, R. A., Myers, S. C. & Marcus, A. J., 2017. Fundamentals of Corporate Finance . 9th Ed. McGraw-Hill. NB. Previous editions are also acceptable. Online sources: www.ft.com/home/uk www.bloomberg.com/europe www.reuters.com/ www.yahoo.co.uk/finance www.iii.co.uk www.motleyfool.co.uk www.carol.co.uk www.moneyweek.com/ In addition, financial articles, podcasts, and films will be utilized on this module.

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: Knowledge specific skills An ability to interpret financial data from accounting statements and data generated in financial markets; An understanding of financial services activity in the economy, and an appreciation of how finance theory and evidence can be employed to interpret these services; An ability to understand financial statements, and a basic appreciation of the limitations of financial reporting practices and procedures. Cognitive and generic skills A capacity for the critical evaluation of arguments and evidence; Ability to locate, extract and analyse data from multiple sources; Numeracy skills, including the ability to manipulate financial and other numerical data and to appreciate statistical concepts at an appropriate level; Skills in the use of communication and information technology in acquiring, analysing and communicating; Capacity for independent and self-managed learning experience of working in groups, and in presenting the work orally as well as in written form.

Module Structure

Activity Total Hours
Assessment (FT) 36.00
Lectures (FT) 24.00
Seminars (FT) 12.00
Independent Learning (FT) 128.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 60.00 35% Unseen exam
Course Work 01 n/a 40.00 35% Active portfolio management 2000 wordsWeek 12