2015-2016
Corporate Finance – Financial Strategic Planning
Category: Business and Management
Code: IS 222
Level: 5
Credits: 15
Teaching Pattern
Week 1
3 x 3hrs
Week 2
3 x 3hrs
1 x 2hrs
Week 3
3 x 3hrs
Seminar
Workshop

Tutorial
1 x 20mins
*you will be expected to do approximately 108 hours of independent study over the 4 weeks.
Week 4
3 x 3hrs
Outline
This module introduces you to applied and practical approaches to finance, including financial
principles, analysing the capital structure of companies, valuation techniques to assess strategic
decisions such as mergers and acquisitions or raising capital. You engage in the lively and
stimulating debate about problems such as international tax and financial management of
multinational corporations. You also develop your understanding of corporate finance as a tool for
making strategic decisions. There will be a field trip to the Museum of the Central Bank of England.
The following topics will be covered:
Agency theory, Corporate Governance and market efficiency
Financial performance ratios, interpretation of financial statements
Level of working capital, financing working capital and cash cycle
Financial markets and project valuation: Payback and discounted pay back, ROCE, NPV,
relevant project costs, international taxation
Sources of Finance (Debt and Equity)
Dividend policy: payments, legal constraints, dividend growth model
Markowitz’s Portfolio Theory and CAPM
Corporate and competitive strategy; mergers & acquisitions
Financial Crisis in 2008 and financial derivatives market
.
Module Structure
The module investigates twelve important topics in the field of Corporate Finance (twelve lectures and
twelve seminars). There are three lectures and seminars per week which covers 3 topics during a
week. One topic includes 1.5 hours of a lecture and 1.5 hours of a seminar (36 hours). Each seminar
focuses on exercises and reading and is designed to help you to explore the topic and relates to the
preceding lecture.
Moreover, for every seminar one of students prepares a short presentation about a chosen company
(additional time for presentations and discussions- 6 hours, 1.5 hours per week). (Module-150 hours15 credits)
1
SUMMER Session 2
Seminar
Readings
DH ch.1,2
1
The Finance Function
The Finance Function
2
Assessing Financial Performance
Assessing Financial Performance
DH ch.2
3
Working Capital Management
Working Capital Management
DH ch.3
4
Investment Appraisal
Investment Appraisal
5
Sources of Finance: Debt
Sources of Finance: Debt
DH ch.5
6
Sources of Finance: Equity
Sources of Finance: Equity
DH ch.4
7
Dividend Policy
Dividend Policy
DH ch. 10
8
Portfolio Theory and CAPM
Portfolio Theory and CAPM
DH ch. 8,
M ch. 5
9
Mergers & Takeovers
Mergers & Takeovers
DH ch. 11
10
Forward and futures contracts
Forward and futures contracts
M ch.21-22
11
The Efficient Markets hypothesis,
Asset bubbles, Financial crisis
The Efficient Markets hypothesis,
Asset bubbles, Financial crisis
M ch. 7
ABB ch. 3,6
12
Financial crisis
The Efficient Markets hypothesis,
Asset bubbles, Financial crisis
M ch. 7
Week 4
Week 3
Week 1
Lecture
Week 2
Session
DH ch. 6 , 7
Learning Outcomes
By the end of the module students will be able to:
Understand various aspects of corporate finance, such as discounting, valuing securities and the
relationship between risk and return.
Understand how modern theoretical developments in finance and strategy are applied in the real
world, by using real financial data
Solve a variety of analytical problems in the field of corporate finance and prepare the financial
statements of the company.
Contacts
Madina Tash
2
SUMMER Session 2
Email: M.Tash@sussex.ac.uk
Indicative Reading List
Core Reading List
Corporate Finance by Denzil Watson & Antony Head, Prentice Hall [DH]
Investment mathematics by Andrew Adams, Philip Booth, David Bowie, Della Freeth [ABB]
Financial Markets and Institutions by Mishkin and Eakin [M]
Fundamentals of Financial Management by James C Van Horne & John M Wachowicz jr, Prentice Hall
Corporate Financial Management by D Emery & J Finnerty, Prentice Hall
Financial Management by G Diacogniannis, McGraw-Hill
The Revolution in Corporate Finance by J Stern & D Chew, Blackwell and Ward
Financial Management Principles and applications by A J Keown, J D Martin, J W Petty & D F Scott, Prentice
Hall
Website Resources
Financial management
http://wps.pearsoned.co.uk/ema_uk_he_watson_corpfin_4/57/14801/3789085.cw/index.html
http://wps.pearsoned.co.uk/ema_uk_he_wachowicz_fundfinman_12/26/6678/1709602.cw/index.html
www.valuebasedmanagement.net
Sources of Finance
http://www.bbc.co.uk/schools/gcsebitesize/business/finance/sourcesoffinancerev1.shtml
http://www.examstutor.com/business/resources/studyroom/accounting_and_finance/sourcesoffinance/
Bond ratings
www.moodys.com
www.standardandpoors.com
www.fitchibca.com
Portfolio Theory
http://www.riskglossary.com/link/portfolio_theory.htm
Working Capital management1
http://www.ncvo-vol.org.uk/askncvo/index.asp?id=441
University Library
Phone: 01273 678163
library@sussex.ac.uk
3
SUMMER Session 2