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25558 Issues in Corporate Finance

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2018 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): (25557 Corporate Finance: Theory and Practice AND 25622 Quantitative Business Analysis) OR (35151 Introduction to Statistics AND 35102 Introduction to Analysis and Multivariable Calculus) OR (37132 Introduction to Mathematical Analysis and Modelling AND 37131 Introduction to Linear Dynamical Systems) OR (23565 Mathematics for Economics and Business AND 23571 Introductory Econometrics)
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

This subject explores applied topics in corporate finance. Specific issues covered include: impact of taxation, agency conflicts and option pricing theory on corporate financial decisions, new-start valuation and financing, takeovers, mergers and acquisitions and corporate restructuring.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. evaluate the effects of taxation on corporate financing and investment decisions
2. discuss the implications of options and agency theory for corporate financial policy
3. discuss the issues for valuation and financing of new and existing businesses
4. evaluate alternative strategies for corporate restructuring

Contribution to the development of graduate attributes

The subject contributes to students’ knowledge and competencies that will help enable them to pursue a fulfilling and effective career in business, especially in financial professions. The particular contributions of the subject are to extend students’ knowledge of the contemporary theories and practice not covered in the subject, Corporate Finance: Theory and Practice.

Teaching and learning strategies

The subject is presented in seminars that guide student learning and enable students to analyse and discuss theoretical and practical issues. Teaching strategies will include appropriate Learning 2014 practices, such as on-line and off-line learning opportunities and flipped learning.

Content (topics)

  • Taxation, tax regimes and implications for financial decisions.
  • Investment appraisals and option pricing theory
  • Agency theory, stakeholders and financial choices
  • Innovations in financing techniques
  • Valuation and financing of new business
  • Mergers and acquisitions
  • Corporate restructuring

Assessment

Assessment task 1: Assignment (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 25%

Assessment task 2: Assessment (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 25%

Assessment task 3: Final Examination (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 50%

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

David Hillier, Mark Grinblatt, and Sheridan Titman, Financial Markets and Corporate Strategy (2nd European edition), McGraw-Hill, 2012