EC4418 Financial Economics: Corporate Finance

Academic year

2024 to 2025 Semester 1

Further information on which modules are specific to your programme.

Key module information

SCOTCAT credits

20

The Scottish Credit Accumulation and Transfer (SCOTCAT) system allows credits gained in Scotland to be transferred between institutions. The number of credits associated with a module gives an indication of the amount of learning effort required by the learner. European Credit Transfer System (ECTS) credits are half the value of SCOTCAT credits.

SCQF level

SCQF level 10

The Scottish Credit and Qualifications Framework (SCQF) provides an indication of the complexity of award qualifications and associated learning and operates on an ascending numeric scale from Levels 1-12 with SCQF Level 10 equating to a Scottish undergraduate Honours degree.

Availability restrictions

Available to General Degree students with the permission of the Honours Adviser

Planned timetable

When confirmed, check online https://timetables.st-andrews.ac.uk/.

This information is given as indicative. Timetable may change at short notice depending on room availability.

Module coordinator

Dr E Lauw

This information is given as indicative. Staff involved in a module may change at short notice depending on availability and circumstances.

Module Staff

Erven Lauw

This information is given as indicative. Staff involved in a module may change at short notice depending on availability and circumstances.

Module description

This module aims to communicate the key concepts in modern corporate finance in explaining how corporations make financial decisions, focusing on investment decision (decision to purchase real assets) and financing decision (decision on how to finance this investment). Corporations make these decisions towards fulfilling the financial goal of the corporation, which is maximizing shareholder value. This module therefore covers some computation techniques to value corporations and investments. This module also considers how these financial decisions could be affected by the market, social, and legal environments. Additionally, the module covers the topics of mergers and sustainable corporate finance.

Relationship to other modules

Pre-requisites

PERMISSION OF THE ECONOMICS HONOURS ADVISER

Assessment pattern

Coursework = 50%; Written examination = 50%

Re-assessment

100% Written examination

Learning and teaching methods and delivery

Weekly contact

2-hour lecture (X10 weeks), 1-hour practical class (X5 weeks), 1-hour tutorial (X5 weeks)

Scheduled learning hours

30

The number of compulsory student:staff contact hours over the period of the module.

Guided independent study hours

170

The number of hours that students are expected to invest in independent study over the period of the module.

Intended learning outcomes

  • Explain the financial goal of the corporation
  • Apply appropriate computation techniques to determine corporation value and investment value
  • Apply and evaluate the classical theories which explain corporate financing decisions
  • Analyse and explain how the market, social, and legal environments could affect corporate investment and financing decisions
  • Apply and evaluate the theories of mergers
  • Explain the concept of sustainability in corporate finance and its applications