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 accounting, capital budgeting, valuation of financial assets, capital structure, cost of capital, and company valuation techniques. It provides a rigorous presentation of the theoretical underpinnings of corporate finance combined with practical applications drawn from case studies.

Learning outcomes

The skills acquired in this module are useful for understanding and coping with the challenges of real-world management decisions. Upon completion of the module, students will be able to evaluate investment opportunities, to understand different methods of raising capital, to make capital structure decisions, and to apply valuation techniques when assessing the value of corporations. These are all useful tools for the preparation of business plans for startups, during firm expansion stages, when undertaking mergers and acquisitions, etc.

Topics covered

  • Time Value of Money and Financial Statement Analysis
  • Capital Budgeting
  • Bond Valuation
  • Equity Valuation
  • Capital Structure Decisions (fundamentals and MM theorems)
  • Capital Structure Decisions with frictional markets
  • Discounted Cash Flow Valuation: WACC and APV

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.

 

Last updated Friday, 17 August 2018