Navigating Finance Essays: From Cost of Capital to Dividend Policy

The aim of this module is to develop an understanding of the major issues in corporate finance. In particular it develops the student`s ability to analyse corporate finance issues; apply finance theories to deal with practical issues in corporate finance; and investigate emerging issues and contemporary trends in the field.

Learning Outcomes

On the successful completion of this module the student should be able to:

1.analyse, apply and compare various investment appraisal techniques in order to make investment decisions.

2.analyse and apply relevant models to help identify company’s cost of capital

3.explain the controversy facing firms’ payout decisions and evaluate the pros and cons of various payout policies

4.analyse the similarities and differences in the way investment, financing and dividend principles are applied to four very different live companies – a large publicly traded firm in an established market, a small emerging market company, a financial service firm and a private independent firm.

This module will call for the successful student to:

5.apply appropriate valuation models to value shares and bonds to help with making financing decisions;

6.analyse and interpret financial data and graphs;

7.clearly communicate in writing an understanding of theory and its application to practical issues.

Syllabus

• The Objective of Decision Making

• The Basics of Risk

• Risk Measurement and Hurdle Rates in Practice

• Measuring returns on investments

• Capital Structure: The Optimal Financial Mix

• Dividend Policy

• Valuation: Principles and Practice

Research Ethics

The teaching, learning, assessment and research activities undertaken in this module have been considered and are not likely to require ethical approval.

However, please seek advice if undertaking the module entails carrying out any research activities involving human participants, human data, animals/animal products, precious artefacts, materials or data systems. If you submit work that includes data gathered from or about people, this may be treated as academic misconduct and could lead to fail grade being awarded.

Research ethics approval seeks to ensure all research is designed and undertaken according to certain principles of ethical research. These include:

1. Primary concern must be given to the safety, welfare and dignity of participants, researchers, colleagues, the environment and the wider community

2. Consideration of risks should be undertaken before research commences with the aim of minimising risks to those involved – i.e. human participants or animal subjects, colleagues, the environment and the wider community, as well as actual or potential risks to those directly or indirectly affected by the research.

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3. Informed consent should be freely given by participants, and by a trained person when collecting or analysing human tissue (details on accessing and completing online training for gaining informed consent for HTA purposes can be found below in Section 8).

4. Respect for the privacy, confidentiality and anonymity of participants

5. Consideration of the rights of people who may be vulnerable (by virtue of perceived or actual differences in their social status, ethnic origin, gender, mental capacities, or other such characteristics) who may be less competent or able to refuse to give consent to participate

6. Researchers have a responsibility to the general public and to their profession; as such they should balance the anticipated benefits of their research against potential harm, misuse or abuse which must be avoided

7. Researchers must demonstrate the highest standards of ethical conduct and research integrity. They must work within the limits of their skills, training and experience, and refrain from exploitation, dishonesty, plagiarism, infringement of intellectual property rights and the fabrication of research results. They should declare any actual or potential conflicts of interest, and where necessary take steps to resolve them.

8. When using human tissues for research,?Human Tissue Act and Human Tissue Authority (HTA) requirements?must be met.?Please?contact the relevant designated person (DP) in your department or the HTA Designated Individual (DI) (Dr Lucy Ghali - [email protected]). Further information is provided below in?the?section: "Human Tissue Authority Information", see 'Governance?Structure" document and SOPs etc.?

9. Research should not involve any illegal activity, and researchers must comply with all relevant laws.

For more information about ethics go to the Middlesex Online Research Ethics (MORE) system which has information and guidance to help you meet the highest standards of ethical research using this link:

Information and further guidance on how to complete a research ethics application form (e.g., video guides and templates) can be found on the MORE MyLearning site*:

*Middlesex University Definition of Research document can be located on this site.

Learning, Teaching and Assessment Strategies

There are a two-hour lecture plus a one-hour workshop/seminar each week to introduce new material and reinforce learning. Extensive student reading is required to deepen understanding of the material introduced in the lectures. Learning is reinforced through a series of seminars using syndicate work on either problems or  case studies, together with a presentation and feedback on the outcome of the workshop.

Formative assessment will be obtained but acceptable preparation and participation in workshops is a requirement to pass this module.  Workshop exercises will allow for application of theories to real world situations, self-evaluation and feedback.