UCL School of Management

Module Fact Sheet

MSING027: Corporate Finance

×

Warning message

This is a past version of this module for MSING027 16/17.
Click here for the current version.
Taught by
Paul Lawrence
Level
Masters
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
2 coursework assignments worth 50% each

Course overview

This course is offered in the first (Autumn) term only. This essay-only module considers a rotating range of major strategic financial issues of importance to company financial officers (FDs and CFOs) and other financially-oriented corporate top executives today—as well as to financially-knowledgeable managers and analysts involved or interacting with these firms.

This course is value-oriented. That word, commonly misunderstood and/or mis-applied outside of the financial sphere, refers here to a specific, unambiguous basis for assessing all company actions and decisions on the basis of incremental discounted cash flow (DCF) effect. From the CFO’s cost-cutting campaigns to share buy-backs, from complex investment decisions (CAPEX) analysis to borrowing-for-dividend-issuance, value is the guiding principle for decision assessment applied in this module.

Learning outcomes

Upon successful completion of the module, students will:

  • Understand what “maximising shareholder value” actually means, comprehend the alternative leading methods for measuring company worth and the reasons for wide use of the leading approach (DCF2S)

  • Comprehend how to ensure that the company has sufficient cash to operate (and where to get it from)

  • Learn how to deal with the advantages of effective leverage as relates to capital structure, serving requirements

  • 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

  • Corporate valuation principles, leading methods, particularly two-stage DCF method (DCF2S)

  • Liquidity management

  • The two sides of leverage

  • Optimal capital structure

  • Engines of corporate value: internal (CAPEX), external investment

  • Integration of financing plan with overall business plan

  • Financing planning, sources

  • Dividends and buy-backs

  • International tax strategy, basics of relationship with auditors

Assessment summary

100% of the mark for this module is based on the assessment of the two 1,500 word papers (each worth 50%). All students write on the same topic, which is revealed by the course leader at Weeks 5 and 10. Topics are selected from one of the four major topics addressed in each half of the course. Each paper is strictly an individual effort (no group-work permitted).

Essential reading

Corporate Finance, compiled by Dr Peter J ClarkPearson Custom Publishing, 2014. ISBN 978-1-78434-322-4 (available only from the Waterstone’s next to UCL campus).

Past versions of this module

MSIN0001 18/19

MSING027 17/18

MSING027 16/17

Last updated Friday, 12 July 2019