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FINN3011: Financial Theory and Corporate Policy

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Type Tied
Level 3
Credits 20
Availability Available in 2025/2026
Module Cap None.
Location Durham
Department Finance

Prerequisites

  • Microeconomics (ECON2021) OR Corporate Finance (FINN2041)

Corequisites

  • None

Excluded Combinations of Modules

  • None

Aims

  • This module aims to:
  • provide students with theoretical knowledge and understanding of key selected theories in finance and corporate policy decisions by building on the knowledge and skills acquired at level 2.
  • familiarise students with selected empirical issues and methods of analysis of corporate financial decisions within the broader framework of financial theories.

Content

  • Decision making under uncertainty
  • Risk and Insurance
  • Static and dynamic asset allocation
  • Classical and neo-classical asset pricing models
  • Asymmetric information and agency theory.
  • Capital structure.
  • Dividend policy.
  • Corporate restructuring
  • Equity financing

Learning Outcomes

Subject-specific Knowledge:

  • At the conclusion of this module students should have:
  • knowledge and understanding of theoretical issues relating to corporate financial policy decision.
  • had the opportunities to appreciate the applications in corporate financial policy decisions drawing on recent research.

Subject-specific Skills:

  • At the conclusion of this module students should be able to apply their knowledge in decision making, in corporate financial policy and they should therefore also be able to critically judge the extent of each major financial policy decision on the wealth of the firm and solve relevant problems.

Key Skills:

  • Written Communication - through summative assessment.
  • Planning and Organising - by observing the strict assignment deadlines and by preparing for the examination.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Teaching is by lectures and workshops. Learning takes place through attendance at lectures, preparation for and participation in workshops, and private study.
  • Formative assessment is by means of two online tests.
  • Summative assessment is by means of an online synchronous timed written examination.

Teaching Methods and Learning Hours

ActivityNumberFrequencyDurationTotalMonitored
Lectures101 per week2 hrs20 
Workshops4Fortnightly2 hrs8Yes
Preparation and Reading172 
Total200 

Summative Assessment

Component: ExamComponent Weighting: 100%
ElementLength / DurationElement WeightingResit Opportunity
Online Examination2 hours100same

Formative Assessment

Two online tests.

More information

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