UCL School of Management

Module Fact Sheet

MSIN0001: Corporate Finance

Taught by
Philip McDonald
Level
Masters, level 7
Prerequisites
Some prior accounting, economics or general business studies may be helpful, but is NOT required
Eligibility
MSc Management Route B students only
Terms
Term 1
Delivery method
2-hour lecture (x 10 wks) immediately followed by 1-hour workshops (x 9 wks)
Assessment
Essay 50%, Final Unseen Examination (2 hours) 50%
Previous Module Code
MSING027

Course overview

This module sets out to educate students for roles as financially-knowledgeable managers and analysts involved or interacting with orgainsiations, and finance directors and teams. After establishing the role of the finance function and identifying the time value of money and the relationship between risk and return as key concepts, the module goes further to consider a range of important areas within corporate finance. These include: the nature of shareholder value, capital markets, sources of finance, investment appraisal (CAPEX), portfolio theory (including the capital asset pricing model - CAPM), the cost of capital and the impact on capital structure, dividend policy and business valuation (especially in the context of mergers and takeovers).

Learning outcomes

Upon successful completion of the module, students will:

  • Understand the multifaceted and nuanced relationships between the raising, investment and management of finance.
  • Apply, critique and evaluate investment appraisal across a range of organisational investment scenarios, especially in the context of risk, inflation and tax implications.
  • Identify sources of finance and evaluate the implications of differing mixes of sources for leverage, cost of capital and shareholder value
  • Understand, critique and apply approaches to portfolio theory.
  • Identify, critique, evaluate and apply a range of approaches to the return of shareholder value.

Topics covered

  • The finance function
  • Optimal capital structure derived from a range of sources of finance
  • Contrasting and alternative approaches to determining the cost of capital
  • Multi-tier investment appraisal in the context of risk, inflation and tax 
  • Portfolio theory
  • Returns of values to shareholders
  • Business valuation approaches
  • Corporate finance in a world of sophisticated and challenging shareholders

Assessment summary

Essay 50%, Final Unseen Examination (2 hours) 50%

Current students should refer to Moodle for specific details of the current year’s assessment.

Essential reading

Corporate Finance by Denzil Watson and Anthony Head, 7th Edition, published by Pearson.

ISBN: 978-1-292-10303-7 (print)

or ISBN: 978-1-292-10308-2 (pdf)

0r ISBN: 978-1-292-14424-5 (ePub)

Past versions of this module

MSIN0001 18/19

MSING027 17/18

MSING027 16/17

Last updated Friday, 12 July 2019