Programme Content Part 2

Part 2 - Compulsory Module

Corporate Finance

Convenor: Dr Carol Padgett   Credits: 20

Introduces students to the main financial decisions taken by companies, and examining how those decisions influence the market’s valuation of companies. By the end of the module it is expected that students will be able to: undertake investment appraisals in the face of uncertainty; understand how new security issues are made, and analyse their consequences; analyse the effects of dividend policy and share repurchases on company value; understand how companies manage working capital and how companies manage risk. 

Outline content: Companies, objectives and information sources; Capital budgeting under certainty and uncertainty; Capital budgeting using real options; Capital structure: New issues and Debt and the weighted average cost of capital; Dividend policy; Information and signalling; Working capital management; Corporate risk management; Exit from the stock market.

Part 2 - Optional Modules

Choice of 40 credits from:

* Please note that at this time those modules with asterisks against them are not available on a distance learning basis.

Corporate Governance and Accountability

Convenor: Dr Carol Padgett    Credits: 20

The objective of the module is to introduce students to the concept of corporate governance, to explain how governance varies around the world and to explore the potential and actual relationships between corporate governance and performance.

Outline content: Internal and external governance mechanisms; Shareholders; Stakeholders; The board of directors; Remuneration; The market for corporate control; Regulation; Communication and financial transparency; Governance in emerging markets.

Enterprise Valuation

Convenor: Dr Carol Padgett    Credits: 10

Introduces techniques used to measure corporate performance and / or value companies. Examines the calculation and explanation of a variety of performance measures, the valuation of companies based on projective cash flows and how information asymmetrics affect valuation.

Outline content: Shareholder value; Economic profit; Free cash flow; Applications to IPOs and new corporate policies.

Mergers and Aquisitions (not available via distance learning)

Convenor: Dr Simone Varotto    Credits: 10

Introduces students to the technical and practical aspects of M&A deals. Explores (1) several corporate valuation methods, (2) how to identify and value synergies, and (3) how to finance an acquisition. Selected case studies will help students become familiar with the practical aspects of the deal making process.

Outline content: What makes a mergers successful and what does not; SWOT analysis and other strategic tools; Bidder and target valuation: DCF, APV, P/E, Book value and similar transactions' multiples; Sensitivity analysis and triangulation; Synergies; Cash, stock and mix financing; Impact of financing methods on valuation; Payment methods; Decision rules; Takeover defences: poison pills, staggered boards, supermajority...; Legal aspects of M&A in the UK; Cross-border mergers and Valuation issues; Mergers and corporate governance.

Strategic Planning and Budgeting

Convenor: Richard Thornton    Credits: 10

Introduces students to the practicalities of developing and utilising financial models with a view to achieving the strategic objectives of an organisation. Students will also gain a thorough understanding of the interaction between the separate statements within a financial model.

Outline content: The need for Strategic Planning and Budgeting and the role served for different parties; The statements contained within a financial model and the interaction between those statements; Banking covenants and aiding compliance; Planning to identify potential cash shortfalls and mitigate future uncertainties; Links between long term and short term borrowings; Initial detail required to commence the preparation of a financial plan; Revenue and expenditure planning; Working capital modelling and integration; Capital expenditure cycle and integration; Management support and incentivisation; Plan development for twelve month and five year time frames; Sources of information; Plan monitoring. Rolling forecasts and amendments to the model; Whole business monitoring versus project modelling.

Venture Capital

Convenor: Keith Arundale    Credits: 10

Develops students’ appreciation of the practical aspects of raising private equity, venture capital and debt finance for a private company and subsequently taking the private company public. This module covers the real world processes involved, and issues in raising private equity and loan finance; the current issues and challenges facing the private equity industry and how the industry is structured; preparing a business plan for the purpose of raising finance, expansion or a management buyout proposition; the investment process and how private equity firms appraise, structure and monitor their deals; the ability to negotiate a term sheet and final shareholders agreement; exit routes and how private equity firms make a return on their investments; and the pricing of IPOs and rights issues.

 

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. Please note that module titles or content may vary each year.