CORPFIN 7022 - Advanced Corporate Finance (M)
North Terrace Campus - Semester 1 - 2022
General Course Information
Course Code CORPFIN 7022 Course Advanced Corporate Finance (M) Coordinating Unit Adelaide Business School Term Semester 1 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 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: Dr Chia-Feng (Jeffrey) Yu
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)
Attribute 1: Deep discipline knowledge and intellectual breadth
Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.
1 through 4
Attribute 2: Creative and critical thinking, and problem solving
Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.
1 through 4
Attribute 3: Teamwork and communication skills
Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.
1 through 4
Attribute 4: Professionalism and leadership readiness
Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.
1 through 4
Attribute 5: Intercultural and ethical competency
Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.
1 through 4
Attribute 8: Self-awareness and emotional intelligence
Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.
1 through 4
Required Resources[BMA] Brealey, R., Myers, S., & Allen, F. (2019). Principles of Corporate Finance. 13th edition. McGraw-Hill Education
[AD] Ackert, L., & R. Deaves. (2010). Behavioral Finance: Psychology, Decision-Making, and Markets, Cengage Learning.
[RWJ] Ross, S., Westerfield, R., Jaffe, J., & Jordan, B. (2018). Corporate Finance. 12th edition. McGraw-Hill Education
There are additional readings available under course readings on MyUni.
Recommended ResourcesThere is a list of recommended resources under course readings on MyUni.
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 commit approximately 9 hours for a three-unit course of private study outside of your regular classes.
Learning Activities Summary
Week# Topic Reading 1 Does debt policy matter? [BMA] Ch.17 + Distributed Readings 2 How much should a firm borrow? [BMA] Ch.18 + Distributed Readings 3 The pecking order and Stulz (1990) [BMA] Ch.18 + Distributed Readings 4 Corporate bonds [BMA] Ch.23 + Distributed Readings 5 Convertible securities [BMA] Ch.24 + Distributed Readings 6 Payout policy [BMA] Ch.16 + Distributed Readings 6 Mid-term Topics 1-5 (time: TBA on MyUni) Mid-semester break 7 IPOs [BMA] Ch.15 + Distributed Readings 8 Executive compensation [BMA] Ch.12 + Distributed Readings 9 Corporate Governance Distributed Readings 10 Internal capital markets Distributed Readings 11 Behavioral Corporate Finance [AD] Ch.15 & 16 12 Revision Lecture
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 Task Task Type Due Weighting Topics Covered Learning Outcome Online mid-term Individual
20% 1-5 2, 3 Presentation Individual Week 12 20% All 1, 4 Final Exam Individual Exam Period 60% 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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