This module is not currently running in the selected year. The information shown below is for the academic year that the module was last running in, prior to the year selected.

2012/13 Undergraduate Module Catalogue

LUBS2200 Business Finance 2

20 creditsClass Size: 240

Module manager: John Smith
Email: jes@lubs.leeds.ac.uk

Taught: Semesters 1 & 2 (Sep to Jun) View Timetable

Year running 2012/13

Pre-requisite qualifications

LUBS1915 Introduction to Financial Accounting & LUBS1925 Introduction to Management Accounting
or
LUBS1235 Introductory Financial Accounting.
or
LUBS2235 Introduction to Financial Accounting AND LUBS2245 Introduction to Management Accounting

This module is approved as an Elective

Module summary

The aim of this module is to provide an introduction to corporate finance. The focus of the module is to develop the analytical tools required to undertake corporate decision making.In addition students are given an in depth research led framework for analysing why managers make certain decisions with respect to the firm and also the trade-offs that managers face. Further information about the Business School is available on the website: Leeds University Business School

Objectives

On completion of this module, students will understand:
- the different sources of financing available to firms
- the process of raising funds and the implicit trade-offs in such a decision
- the valuation of stocks and bonds
- portfolio theory
- mean variance analysis and the CAPM
- cost of capital
- incremental cash flow
- investing in risk free projects
- investing in risky projects
- the impact of taxation on financing decisions
- theories of dividend policy
- capital structure
- bankruptcy costs and debt-holder/equity holder conflicts
- mergers and acquisitions.

Syllabus

- Financial markets and financial instruments
- Debt financing
- Equity financing
- Mean-variance
- The capital asset pricing model
- Discounting and valuation
- Investing in risk-free projects
- Investing in risky projects
- Corporate taxes and the impact of financing on real asset valuation
- Capital structure
- Dividend policy and share repurchases
- Bankruptcy costs and debt holder/equity holder conflicts
- Capital structure and corporate strategy
- Mergers and acquisitions.

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	22	2.00	44.00
Seminar	10	1.00	10.00
Private study hours			146.00
Total Contact hours			54.00
Total hours (100hr per 10 credits)			200.00

Opportunities for Formative Feedback

- Students will be able to monitor their progress through fortnightly seminars. Model answers and answers and marking schemes for workshop and past examination papers against which students can assess their own performance;
- Formative feedback is provided half way through the course in form of an hour long closed book class test;
- The results if the class test do not contribute to the final mark but provide the student with a benchmark for their understanding of the material covered;
- Solutions for the class test will be provided after the test to allow students to assess their performance.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	3 hr 00 mins	100.00
Total percentage (Assessment Exams)		100.00

Normally resits will be assessed by the same methodology as the first attempt, unless otherwise stated

Reading list

The reading list is available from the Library website

Last updated: 22/04/2013

Disclaimer

Browse Other Catalogues

• Undergraduate module catalogue
• Taught Postgraduate module catalogue
• Undergraduate programme catalogue
• Taught Postgraduate programme catalogue

Errors, omissions, failed links etc should be notified to the Catalogue Team.PROD