UCL School of Management

Module Fact Sheet

MSIN0149: Corporate Finance

Taught by
Fred Malherbe
Level
Masters, level 7
Prerequisites
None
Eligibility
MSc Finance students only
Terms
Term One
Delivery method
3-hour lecture (x 10 weeks)
Assessment
Unseen Examination (2 hours) 80%
Group Coursework 20%
Previous Module Code
MSING064

Course overview

The objective of this course is to analyze how corporate managers raise capital and make investment decisions. The course covers the main elements of capital budgeting, valuation of financial assets, capital structure, and cost of capital. It provides a rigorous presentation of the theoretical underpinnings of corporate finance combined with practical applications drawn from case studies.

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.
  • Apply advanced multiple-tier capital investment analysis
  • Calibrate company financing strategy with corporate strategy and future prospects
  • Separate fact versus fiction regarding: buy-backs, extraordinary dividends, cost cuts, corporate tax minimisation

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

Unseen Examination (2 hours)  80% Group Coursework  20%

The Final Examination counts for 80% of the total grade. The Coursework counts for 20% of the total grade.

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

Essential reading

Self-contained lecture notes will be posted on Moodle prior to the weekly sessions.

Most lectures will follow the main textbook:

Berk and DeMarzo, Corporate Finance, 3rd or subsequent global edition, Pearson Education Ltd.

 

Past versions of this module

MSIN0149 18/19

Last updated Thursday, 27 June 2019