| Unit name | Advanced Corporate Finance |
|---|---|
| Unit code | ACFIM0021 |
| Credit points | 20 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Dr. Ordonez-Calafi |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
None |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why is this unit important?
This unit is designed to equip students with an understanding of the firm as an institution and of some of the most relevant decisions made in companies’ C-suites, as well as of how these decisions are intertwined with the corporate ecosystem. The unit expands the set of topics that are typically covered in basic courses of corporate finance, including Fundamentals of Corporate Finance and Fundamentals of Finance. Subjects covered in this unit range from the corporate processes of raising capital by issuing debt (e.g. bonds, loans, commercial paper) and equity (e.g. venture capital, IPOs, SEOs), to the acquisition of other companies (e.g. mergers, acquisitions, LBOs) and the associated implications for corporate governance (e.g. shareholders vs directors, executive compensation). These and other relevant issues are discussed with a pragmatic approach that bridges corporate finance theory with real examples and institutional details of the environment in which actual companies operate.
How does this unit fit into your programme of study?
This unit is a natural extension to the more fundamental units covering Fundamentals of Corporate Finance and Fundamentals of Finance. Conceived as an optional unit in multiple programmes in Finance, Accounting and Economics, it is oriented to those students that seek a broader understanding of the corporation as an entity, and of some of the most critical decisions that are made in it for both the long and the short run. The central role of firms in the financial ecosystem, and the practical approach adopted in this unit, make of it a sound complement to any other unit offered in these programmes.
An overview of content
The unit covers key concepts of the firm’s structure and addresses critical topics in corporate decision-making. A first section discusses how market frictions determine the desirability of distinct capital structures. Next, the unit covers the means of raising capital via securities like debt or equity in distinct stages of the corporate life cycle. This is followed by a section that studies corporate governance and the market for corporate control, including mergers and acquisitions. Finally, the unit addresses a set of other relevant topics such as risk management and short-term financing.
How will students, personally, be different as a result of the unit
This unit will equip students with a comprehensive view of the firm and the institutional setting in which it operates. This will enable students improve their understanding of the impact that some corporate decisions have on the multiple elements of the firm. Furthermore, the unit is structured over a coherent framework that facilitates a formal approach to the multiple concepts that are covered. By solving and discussing simple numerical exercises based on this framework, students will experience the benefits of formalising real-world problems.
Learning Outcomes
At the end of the unit a successful student will be able to:
How you will learn
Students will learn over a combination of lectures and tutorials. Each lecture addresses a particular topic and is designed to provide students with a conceptual framework that facilitates the analysis of the subject. Lectures are compact and self-coherent, so they provide a structured, well-defined view of the content to students.
In tutorials, the lecturer explains and discusses with students problems that are based on the content delivered in lectures. These problems are generally numerical and technically very easy. However, they can be challenging on their set up, giving value to the concepts previously explained in lectures. Importantly, the discussion of these problems in tutorials shall establish explicit links to both the corresponding lectures and examples in the real World.
Tasks which help you learn and prepare you for summative tasks (formative):
Formative assessment is articulated over multiple problem sets that are circulated progressively during the unit. Students are given time to attempt solving the problems by themselves, and actual solutions are subsequently explained and discussed in tutorial sessions. These problems are similar to those in the summative assessment, and therefore provide students with a good sense of their ability to perform. In addition to the problem sets, students are given a questionnaire aimed at assessing their current knowledge of the subject in the last lecture. Furthermore, students also have access to a sample summative assessment that they can use to test their knowledge.
Tasks which count towards your unit mark (summative):
A unique final exam of 2 hours (120 minutes). The exam consists of five parts, each worth 20% of the final mark. Each part assesses the content of a specific set of lectures and the corresponding problem sets. Each part consists of a short conceptual question and multiple numerical exercises. The exam has no options, i.e., all questions must be answered, and it tests all Intended Learning Objectives: LO1, LO2, LO3, LO4, LO5, and LO6.
When assessment does not go to plan
When a student fails the unit and is eligible to resubmit, failed components will be reassessed on a like-for-like basis with the same structure and level of difficulty than the final assessment.
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFIM0021).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
