Study-Unit Description

Study-Unit Description


CODE BKF5500

 
TITLE Corporate Finance

 
LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
ECTS CREDITS 5

 
DEPARTMENT Banking and Finance

 
DESCRIPTION The study-uinit principally describes the theory and practice of business finance and financial management with special reference to the perspectives relevant to managers. The course is divided into a theoretical overview, and case application of the relative theory. The theories of risk, capital budgeting, financing decisions figure highly in this course. The first units focus on Investment Decisions and Strategies, the Foundations of Corporate Finance and Objectives of Decision Making. Then the subject will look at Investment and Project appraisal methods and the Investment Strategy and Process. The next sections will look into Value, Risk and the Required Return, Valuing Investments and Shares, Enterprise value and equity value Risk and Return. Later it will delve into subjects to the likes of Financing and Policies, Treasury Management, working capital policy, Payout Theory/Policy, Strategic Financial Decisions such using Long-term finance, Returning value to shareholders: the dividend decision, Capital structure and the required return, on whether capital structure really matters, Acquisitions and Restructuring, and International Corporate Finance - Managing Currency Risk and Foreign Investments Decisions.

Study-unit Aims:

To equip participants to: anticipate management strategic decisions in response to market conditions and shareholders aims and objectives, to use valuation techniques, to assess possibilities to enhance values, Identify capital structures and financing alternatives that optimise the cost of capital and shareholder value within the client’s own risk parameters, to recommend attractive, client focused changes to corporate and financial strategies that are value-enhancing and appropriate to current market conditions.

Learning Outcomes:

1. Knowledge & Understanding:
By the end of the study-unit the student will be able to:

Participants will learn how corporate finance techniques can be used to identify business development opportunities for clients and to quantify the benefits of alternative financing and business solutions.

2. Skills:
By the end of the study-unit the student will be able to:

Take better management strategic decisions, to use valuation techniques, to Identify capital structures and financing alternatives, to optimise the cost of capital and shareholder value within a firm, to recommend attractive, client focused changes to corporate and financial strategies. They will also be equipped with knowledge of assumptions taken in models used and how to optimise them.

Main Text/s and any supplementary readings:

Main Text:
Corporate Finance and Investment: Decisions and Strategies, by Richard Pike and Bill Neale, Seventh Edition, FT Prentice Hall, Pearson Education Limited 2009.
All students are expected to acquire the textbook since all lectures will be based on this book.

Principles of Corporate Finance Concise Edition: Richard A. Brealey, Stewart C. Myers and Franklin Allen. McGraw-Hill International Edition ISBN 978-007128916-0.

Applied Corporate Finance: 4th Edition. Aswath Damodaran.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Resit Availability Weighting
Assignment SEM1 Yes 50%
Examination (2 Hours) SEM1 Yes 50%

 
LECTURER/S Peter J. Baldacchino
Simon Grima
Robert M. Suban

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the study-unit description above applies to the academic year 2019/0, if study-unit is available during this academic year, and may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit