UNIVERSITY OF KENT
Module Specification
1. Title of module:
The Fundamentals of Corporate Finance and Investment (CB964)
2. The School which will be responsible for the management of the module:
Kent Business School
3. Start date of the module:
September 2007
4. Number of students expected to take the module:
20 part-time, 30 full-time
5. Modules to be replaced:
Nil
6. Level of module:
M (FHEQ Level: 7)
7. The number of credits which the module represents:
15 (7.5 ECTS)
8. Status:
Core module, MBA programme
9. Pre-requisite and co-requisite modules:
None
10. Programme of study to which module contributes:
MBA programme
11. Intended subject specific learning outcomes and, as appropriate, their relationship to programme learning outcomes:
The module provides understanding of the financial market environment in which companies operate. In particular, a case focus of an international stock exchange presents an integrative analysis of theoretical application to practical issues. Focus is given to the ways that financial markets function, the major participants involved and their role in the financial system.
Various aspects of the efficiency of financial markets and some of the implications thereof are investigated. Students are made aware of and will contribute to the consideration of problems faced by corporations when operating within a stock market. The module further develops analytical skills via the application of valuation models to a range of finance sources.
On completion of this module students will be able to demonstrate knowledge and understanding of, and the ability to implement, concepts and techniques relating to:
· Presenting investment appraisals that recognise risk and that incorporate risk techniques within the evaluation
· Undertaking probability analysis and to explain its relevance when advising decision-makers
· Interpreting and clearly explain the limitations of various risk evaluations
· Understanding and clearly explain the risk-reducing effect of portfolio diversification
· Understanding and apply the correlation coefficient measure to portfolio analysis
· Advising on optimum portfolios through the application of Utility theory
· Explaining the Capital Asset Pricing model and its limitations
· Applying CAPM to portfolio investment
· Describing the UK financial system and its components
· Explaining the roles and importance of efficient stock exchanges
· Understanding and clearly explain the characteristics of key sources of finance
· Derive values for key sources of finance
· Understanding and discuss the debate on some of the issues concerning capital structure and its influence on a company’s value.
· Calculating the weighted average cost of capital and explain its relevance to investment decisions and company valuation.
These intended module learning outcomes contribute to the following programme learning outcomes:
· Programme learning outcome A1: The impact of contextual forces on organisations including: legal systems; ethical, economic, environmental, social and technological change issues; international developments; corporate governance
· Programme learning outcome A6: The uses and limitations of a range of research methods/techniques, both qualitative and quantitative, and an understanding of their strengths and weaknesses for providing information and evaluating options in an uncertain organisational environment
· Programme learning outcome A7: The development, management and exploitation of information systems and their impact on organisations
· Programme learning outcome A8: The use of relevant communication and information technologies for application in business and management within a global knowledge-based economy
· Programme learning outcome A9: The development of appropriate business policies and strategies within a changing context to meet stakeholder needs
· Programme learning outcome A10: A range of contemporary and pervasive issues which may change over time. Illustrative examples include: innovation, creativity and enterprise, e-commerce, knowledge management, sustainability, business ethics, values and norms, globalisation
12. Intended generic learning outcomes and, as appropriate, their relationship to programme learning outcomes:
On completion of this module students will be able to demonstrate:
· Ability to work in groups and teams
· Problem solving and decision taking skills
· Numeracy and quantitative skills
· Research skills in the business and management area
· Critical thinking skills
· Ability to learn through reflection on practice and experience
· Ability to work with complex material
· Ability to analyse problems and identify appropriate solutions
· Ability to work and study independently and utilise resources effectively
· Communication and report writing skills
· Ability to scan and organise data, abstract meaning from information and share knowledge with others
· Ability to participate in informed debate relating to the functions of stock markets, the facilities provided, the corporate interaction and issues of efficiency
· Ability to explain trading strategies consistent with technical analysis and those associated with fundamental analysis
· Ability to understand and discuss the debate on the issues concerning capital structure and its influence on a company’s value, including the taxation effect
These intended generic learning outcomes contribute to the following programme learning outcomes:
· Programme learning outcome B1: Critical thinking and creativity, organising thoughts, analysis, synthesis and critical appraisal. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
· Programme learning outcome B2: Learning through reflection on practice and experience
· Programme learning outcome B3: Ability to select, organise, develop and synthesise complex material
· Programme learning outcome B4: Analytic skills necessary for the analysis of problems and the identification of appropriate solutions
· Programme learning outcome B5: Ability to plan, work and study independently and use resources in a way which reflects best current practice and anticipated future practice.
· Programme learning outcome C1: Problem solving and decision making skills; establishing criteria; using appropriate decision techniques including identifying, formulating and solving business problems; the ability to create, identify and evaluate options; the ability to implement and review decisions
· Programme learning outcome C2: Numeracy and quantitative skills, including the use of models of business situations
· Programme learning outcome C4: Ethical and value management, recognising ethical situations, applying ethical and organisational values to situations and choices
· Programme learning outcome C6: Appreciation of the role of senior management in any of the key functional areas of organisations and a potential ability to take on such a role within business
· Programme learning outcome C7: Ability to plan, work and study independently and use resources in a way which reflects best current practice and anticipated future practice
· Programme learning outcome C8: Ability to identify and deploy relevant resources for the achievement of organisational objectives
· Programme learning outcome C9: Ability to initiate and manage change by the development of an awareness of threats, a perception of opportunities and a readiness to reconsider current practice rather than simply repeating past patterns
· Programme learning outcome D1: Information and knowledge; scanning and organising data; abstracting meaning from information and sharing knowledge
· Programme learning outcome D2: Effective use of Communication and Information Technology (CIT)
· Programme learning outcome D3: Two-way communication: listening, negotiating and persuading or influencing others; oral and written communication, using a range of media, including the preparation of business reports
· Programme learning outcome D4: Information and knowledge; scanning and organising data; abstracting meaning from information and sharing knowledge
· Programme learning outcome D5: Effective performance within a team environment and the ability to recognise and utilise others’ contributions in group processes; team selection, delegation, development and management
13. Synopsis of the curriculum
Investment Decisions, including:
o The impact of risk on investment appraisal
o The risk-return trade off
o Portfolio theory and the capital asset pricing model
Financing Decisions, including:
o Sources of finance
o Financial markets and institutions
o Capital structure
o Weighted average cost of capital – linkage to investment decisions and company valuation
The Efficient market Hypotheses
Capital Structure; The Taxation Effect and Debt/Equity mix
Business ethics and corporate responsibility
14. Indicative reading list
Brealey R, Myers and Allen F, Corporate Finance (8th Edn) McGraw Hill
15. Learning and teaching methods, including the nature and number of contact hours and the total study hours that will be expected of students, and how these relate to achievement of the intended learning outcomes
The total student learning time for the module is 150 hours.
For all students, there will be 36 hours of class contact time. During these sessions, new learning materials will be introduced to students who will interact with the module tuition team and with their peers. These learning sessions will also involve small group discussion of case studies and scenarios and plenary presentations and discussions.
There may also be an opportunity to introduce new on-line learning materials, and virtual seminar discussions as the business school develops these modes of teaching .
This combination of learning and teaching methods will:
· Provide students with the underpinning knowledge required to meet the module’s intended subject specific learning outcomes
· Encourage the development of the necessary analytic and intellectual skills (intended learning outcomes 12ii, 12iii, 12iv, 12v, 12vii, 12viii, and 12xi)
· Facilitate the development of independent learning and team-working skills (intended learning outcomes 12i, 12vi, 12ix, and 12x)
16. Assessment methods and how these relate to testing achievement of the intended learning outcomes
· Coursework: this will account for 40% of the overall module mark. This mode of assessment relates both to the subject specific learning outcomes and the generic learning outcomes, 12i, 12ii, 12iii,12iv, 12v, 12vi, 12ix,12xi
· Examination: there will be a two hour unseen examination which will account for 60% of the overall module mark. This mode of assessment relates to the subject specific learning outcomes and to generic learning outcomes 12ii, 12iii, 12v, 12vii, and 12viii
17. Implications for learning resources, including staff, library, ICT and space
Investment by Kent Business School will be required for the development of the on-line learning materials. This will build on the expertise acquired from the earlier development of the MA in E-Commerce. There will be some need to involve external expertise in the development and delivery of the module. Both of these items will be met from within the Kent Business School budget. Other than these items, no expansion of existing or planned (particularly in the Medway area) learning resource provision is required.
Students will be required to have access to appropriate ICT facilities (e.g. a laptop computer of approved type with Internet connections) to enable them to participate in the on-line learning.
18. A statement confirming that, as far as can be anticipated, the curriculum, learning and teaching methods and forms of assessment do not present any non-justifiable disadvantage to students with disabilities
We believe that the curriculum, learning and teaching methods and forms of assessment do not present any non-justifiable disadvantage to students with disabilities.
Statement by the Director of Learning and Teaching: I confirm I have been consulted on the above module proposal and have given advice on the correct procedures and required content of the module proposal’.
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Director of Learning and Teaching Date
Statement by Head of School: I confirm that the School has approved the introduction of the module and will be responsible for its resourcing’.
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Head of School Date