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Durham University

Faculty Handbook 2022-2023

Module Description

Please ensure you check the module availability box for each module outline, as not all modules will run each academic year.

Department: Economics and Finance

ECON2101: Intermediate Finance

Type Open Level 2 Credits 20 Availability Available in 2022/23 Module Cap Location Durham

Prerequisites

  • Principles of Economics (ECON1011) AND EITHER Economic Methods (ECON1021) OR Calculus I (MATH1061) AND Linear Algebra I (MATH1071) AND Probability I (MATH1597) AND Statistics I (MATH1617)

Corequisites

  • None.

Excluded Combination of Modules

  • None.

Aims

  • To develop your knowledge and understanding of key issues in Corporate Finance by building on the skills gained in level 1
  • To provide you with a good grounding for undertaking a dissertation in the finance field
  • To offer you the opportunity to develop some key skills.

Content

  • An introduction to Financial Economics and Financial Markets: An introduction to finance and organisational goals.
  • The financial objectives of the corporation, Corporate Social Responsibility and sustainability, the principal-agent relationship.
  • The valuation of securities.
  • Investment Decision Making in theory and practice.
  • Risk and Uncertainty: Measuring risk.
  • Diversifiable and non-diversifiable risk.
  • Asset Pricing Models: theory and evidence.
  • Corporate Valuation.
  • The Efficient Market Hypothesis.
  • The capital structure decision.
  • The dividend decision.
  • Option pricing theory.
  • Mergers and Acquisitions

Learning Outcomes

Subject-specific Knowledge:
  • Have knowledge and understanding of essential principles of Corporate Finance
Subject-specific Skills:
  • Be able to use principles of Corporate Finance to analyse financial issues
Key Skills:
  • Written Communication - e.g. by completing formative assignments and through summative assessment.
  • Planning, Organisation and Time Management - e.g. by preparing for examinations.
  • Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to manipulate concepts in corporate finance, in undertaking assessed work.
  • Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of examination questions.

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

  • Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study.
  • Formative assessment is by means of an essay.
  • Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Lectures 20 1 per week 1 hour 20
Revision Lecture 2 2 in term 3 1 hour 2
Tutorials 8 Fortnightly 1 hour 8
Preparation and Reading 170
Total 200

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
One written examination 2 hours 100% Same

Formative Assessment:

1,500 word written assignment.


Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University



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