Corporate Finance Module - Online MBA
Introduction and module objectives
The Advanced Finance module aims to provide students with an understanding of, and ability to apply the tools and methodologies of contemporary finance theory. The module takes a practical perspective; it is theoretically robust, but rooted in application. The module will build on the introductory Finance and Accounting module to explore the financial decision-making processes of organisations. In so doing the module will look at the role of financial managers and the scope / remit of their decision making. Financial decision-making takes place against the constraints of the external environment, and so the module will look at these external factors and the impact that they have. Financial decisions are complex, and so the module will explore methods for evaluating and presenting choices in an accessible manner.
On completion of the module, students should be able to:
- Understand the implications of the overarching strategic objectives of the organisation for the finance function.
- Explain the role of the organisation’s financial managers in realising these strategic objectives.
- Be able to described and evaluate the different sources of corporate finance (e.g. equity, debt, retained earnings and so on …), and be able to explain the relative advantages and disadvantages of each source.
- Understand how risk and the cost of capital impact on investment appraisal, and explain how such factors affect the value of a capital project.
- Approximate the organisation’s cost of capital, and understand how this cost is impacted by taxation, “leverage” and other factors.
- Assess the external and internal influences on a corporation’s capital structure, payout policy and policy in respect of risk management (via insurance, derivatives, and other instruments).
- Explain how the corporation’s capital structure, payout policy and risk policy impact upon investment decisions.
- Have good understanding of, and be able to discuss current topical issues under debate in the world of corporate finance.
- Identify and search financial data sources such as company reports, web publications, library databases in order to obtain relevant financial data.
- Learn how to apply spreadsheets to calculate the values of projects or securities.
- Carry out risk and sensitivity analysis of projects.