SOAS University of London

School of Finance and Management

Corporate finance

Module Code:
15PFMC070
Credits:
15
FHEQ Level:
7
Taught in:
Term 2

Corporate Finance will be renamed International Corporate Finance for the 2020/21 session.

This module provides students with fundamental knowledge in principles of international corporate finance and asset pricing to understand and analyse the major issues affecting the financial policies of corporation in capital markets. This course is concerned with the decisions that firms make about financing their investment in a global economic environment. You will study the principles underlying such decision-making, their application and debates over them in relation to the modern literature to develop analytical skills in a challenging global environment, and other complex specialised contexts.

Objectives and learning outcomes of the module

This course will enable students to:

  1. Acquire advanced knowledge and critical understanding of essential components of international corporate finance and associated current research.
  2. Understand valuation techniques for stocks and bonds
  3. Demonstrate a critical knowledge and understanding of the impact that decisions on capital structure and dividend policy have on firm value
  4. Identify how financial decisions may convey new information on the firm’s prospects
  5. Demonstrate a critical knowledge and understanding of different forms of market efficiency
  6. Apply problem solving and analytical skills to issues in corporate finance in a complex specialised global context.

Workload

Lectures

This module consists of a 2-hour weekly lecture over 10 weeks of term plus a revision lecture in term 3 as preparation for the final examination. Students will be supplied with a syllabus with a breakdown week by week of required and additional reading. Reading materials are usually accessed electronically from the BLE and students should come to class prepared.

Tutorials

This module also has a weekly 1-hour tutorial where the questions posed by the tutor relevant to the lecture are explored and discussed by the students. Students also prepare and deliver a short presentation.

Total Work load:

Students on this module will have 3 taught hours each week. Additionally, adequate personal study time should be allocated for reading and class preparation.

Scope and syllabus

  1. Introduction to international corporate finance

  2. Time value of money

  3. Valuation of bond and equity

  4. Risk/return tradeoffs

  5. Portfolio theory

  6. Equity financing

  7. Payout policy

  8. Capital structure

  9. Mergers and Acquisitions

  10. Market efficiency hypothesis

Method of assessment

Assessment for this module is in three elements:

  1. One tutorial presentation at 10%
  2. One essay of 2,500 words at 30%
  3. One unseen 2-hour written examination at 60%

All elements except the presentation may be resubmitted

Disclaimer

Important notice regarding changes to programmes and modules