CORPFIN 7022NA - Advanced Corporate Finance (M)

Ngee Ann Academy - Trimester 2 - 2017

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: competing capital structure theories including financial distress and agency costs, dividend policy and taxation, IPOs in both debt and equity markets, motives for convertibles and warrants, rationales for corporate diversification including internal capital markets and agency theory.

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Course Details

Course Code	CORPFIN 7022NA
Course	Advanced Corporate Finance (M)
Coordinating Unit	Adelaide Business School
Term	Trimester 2
Level	Postgraduate Coursework
Location/s	Ngee Ann Academy
Units	3
Available for Study Abroad and Exchange	N
Prerequisites	ACCTING 7019NA, CORPFIN 7005NA, COMMERCE 7033NA, ECON 7200NA
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Associate Professor Jean Canil

Course Timetable

The full timetable of all activities for this course can be accessed from Course Planner.

Course Learning Outcomes

On 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

Learning Resources

Required Resources

Damodaran, Aswath, Corporate Finance: Theory and Practice, 2nd edition, John Wiley & Sons, Inc. 2001
Learning & Teaching Activities

Learning & Teaching Modes

This course is an intensive-based course taught over two sessions. It is based on face-to-lectures intermingled with class exercises.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

Students are expected to read all the material prior to the each intensive.

Learning Activities Summary

The course begins with a presentation of the different financing choices available to firms, emphasising both commonalities and
differences. It moves on to understanding the financing needs of the firm based on life cycles and the process by which firms move from one financing choice to another. We then consider measurement of the ‘optimal’ financing mix using a number of approaches.
The choices that over-levered or under-levered firms have in moving to the optimal financing mix are examined.

The next part of the course covers dividend decisions. Dividend policy is defined and the trade-off between retention and payout is examined. This involves discussion of three schools of thought ranging from dividends adding value, destroying value and being irrelevant. The course considers practical ways in which to measure dividend policy. One approach is to measure free cash flow and examine whether firms distribute any free cash flow. Alternative ways for firms to return free cash flow to shareholders, including divestitures and spin-offs, are also examined.

The course is concluded by applying option pricing theory to a range of corporate investment decisions. Applications include the options to delay, expand and abandon. Real options recognise that firms have flexibility in their choice of investments and that not all projects have the characteristics assumed by the net present value approach. Option pricing theory is applied to natural resource firms, to firms with patent products, and in valuing equity and debt claims.

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 Summary

The assessment of this course is as follows:

Assignment: The assignment will be handed out to students at the first intensive course, and is to be handed in at the beginning of the second intensive course. It will cover all Topics covered in the first intensive. It is worth 50% of total marks.

The assignment can be done in a group of no more than 2 students and it is the responsibility of the group to ensure that each student has contributed equally. The first page of your assignment should specify your name(s), student number(s) and the assignment title. It should be completed in Word format. Late assignments will not be accepted unless arrangements have been made with the course co-ordinator prior to the due date. Extensions will only be granted for medical or other serious reasons.

Final examination: The final component of this course will be an exam, which will cover all topics of the course. More information will be provided in the second session.

Assessment Detail

Assessment is assessed in two forms group assignment (30%) due in the second intensive and the final exam (70%) to a total of 100%. More detail will be provided in the two intensive sessions.

Submission

The assignment will be handed in during the second intensive.

Course Grading

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.

Student Feedback

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.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator