CORPFIN 7022 - Advanced Corporate Finance (M)
North Terrace Campus - Semester 1 - 2019
General Course Information
Course Code CORPFIN 7022 Course Advanced Corporate Finance (M) Coordinating Unit Business School Term Semester 1 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 4 hours per week Available for Study Abroad and Exchange Y Prerequisites ACCTING 7019, CORPFIN 7005, CORPFIN 7033/COMMERCE 7033, ECON 7200 Course Description The objective of the course is to gain an appreciation of the theoretical controversies surrounding corporate finance policies, leading to formulation of financing strategies. Topics include competing capital structure theories including financial distress and agency costs, optimal dividend policy and taxation, IPOs in equity markets, motives for convertibles and warrants, rationales for corporate diversification including internal capital markets and agency theory. In each topic we will focus on the real-world applications of corporate finance tools and theories to address issues commonly faced by corporate managers, investors, and entrepreneurs.
Course Coordinator: Associate Professor Jean Canil
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course, students will be able to:
1. Critically evaluate theoretical research in corporate finance
2. Explain the implications of theory for practical financial management
3. Compare various models of investment decision making under uncertainty
4. Investigate the impact of alternative financing proposals that a firm may face in both the short and long term and argue recommendations
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1 through 4 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
1 through 4 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
1 through 4 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1 through 4 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
1 through 4 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
1 through 4
Required ResourcesThe textbook for the course is Allen, F., R. A. Brealey, and S. C. Myers, Principles of Corporate Finance 12th edition McGraw Hill, 2017. (ABM). You must acquire the 12th edition as there is material covered that is not contained in the 11th edition.
There are additional readings available under course readings on canvas.
Recommended ResourcesThere are a list of recommended resources under course readings in canvas.
Online LearningOnline resources provided on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesLectures supported by problem-solving exercises developing material covered in lectures.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
The University expects full-time students (i.e., those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to committ approximately 9 hours for a three-unit course of private study outside of your regular classes.
Topic# Topic Reading 1 Does debt policy matter? Ch 17 + Titman.pdf 2 How much should a firm borrow? Ch 18 pp.460-479 3 The pecking order and Stulz (1990) Ch 18 pp.479-486 + Lakshmi.pdf + Frank.pdf + additional readings 4 Leasing Ch 25 + additional readings 5 Convertible debt Ch 24 pp 630-636 + Mayer.pdf Class test 1 During lecture time. More information on canvas. Mid-semester break 6 Payout policy Ch 16 + LaPorta.pdf + Brandon.pdf 7 IPOs Ch 15 (excluding p398) Class test 2 During lecture time. More information on canvas. 8 Executive compensation Ch 12 pp302-311 + Core et al.pdf 9 Internal capital markets Gertner.pdf + Stein.pdf + additional readings Review
Learning Activities Summary
No information currently available.
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Weighting Topics covered Related learning outcome Class test 1 10% 1-3 All Class test 2 10% 4-5 All Assignment 15% 6 All Exam 65% All All
No information currently available.
No information currently available.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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