Specialist Masters Programme Course handbook MSc in Corporate Finance September 2016

Transcription

1 Specialist Masters Programme Course handbook MSc in Corporate Finance September

2 Table of contents Section 1 Course Director s welcome 3 Section 2 Programme information Programme aims 4 Programme structure 5 Assessment matrix 6 Term dates and assessment periods 8 Section 3 Module descriptions SMM464 Advanced Corporate Finance 9 SMM467 Corporate Finance and Valuation 13 SMM225 Corporate Restructuring 17 SMM250 Corporate Risk Management 20 SMM249 Financial Reporting 23 SMM147 Financial Statement Analysis 26 SMM528 Private Equity Investment 29 SMM547 Research Methods for Finance Professionals 34 SMM248 Statistics in Finance 37 SMM237 The Economics of Corporate Governance 40 SMM148 Theory of Finance 44 SMM236 Topics in Mergers and Acquisitions 47 SMM799 Applied Research Project 51 SMM527 Business Research Project 54 Elective information 57 Section 4 Regulations Periods of registration 58 Degree requirements 58 Assessment calculations 58 Coursework 59 Peer assessment 59 Failure and resitting of modules 60 Award of distinction and merit 60 Postgraduate Diploma 60 Programme Specification 61 Grade related criteria 62 1

3 Section 5 Additional information MSc Course Office 63 Moodle: your virtual learning environment 64 International partnership programmes 64 Personal tutors 65 Academic staff contact details 65 Faculty 66 Programme changes 67 2

4 Section 1 Course Director s welcome It gives me great pleasure to welcome you to the Sir John Cass Business School. This handbook provides all the relevant information about the MSc in Corporate Finance. It covers administrative procedures, assessment and regulations, course structure and module outlines which you are recommended to familiarise yourself with. Please keep it in a safe place as you might need to refer to the handbook throughout the year. The programme aims to provide you with an academically rigorous and professionally relevant education that will enable you to build a successful career in corporate finance. The months ahead involve lots of hard work, but plenty of fun as well. We hope it will be an exciting year and that you will make the most of it. My colleagues and I will be delighted to help in any way we can. Please do not hesitate to come and see me whenever you wish to discuss any aspect of your studies. With best wishes for a good year, Dr Pawel Bilinski Course Director of MSc in Corporate Finance 3

5 Section 2 Programme information Programme aims The world of finance, with its varied career opportunities and continuous demand for sharper, brighter and more adaptable employees, is an attractive choice for many top-calibre graduates with numerical skills. Companies are now looking for a combination of high-level interpersonal skills, in-depth knowledge and analytical skills to enable them to succeed in this rapidly changing and ever-more complex environment. It is with this in mind that the MSc in Corporate Finance has been developed. The course fully integrates theory and practice. Top-rated academic teaching from Cass Business School provides a broad theoretical knowledge base, while a strong practical orientation is delivered by professionals from major firms in the City of London. It provides students with: A thorough and comprehensive grasp of the principles and applications of finance, together with enduring technical and conceptual skills A broad-ranging experience of quantitative techniques relevant to finance A focus on financial issues in many industry sectors Excellent opportunities to make contacts within the City of London A genuinely international, multicultural perspective with a global focus A highly flexible qualification suitable for a wide range of career openings in the financial sector 4

6 Programme structure Term one SMM467 SMM249 SMM547 SMM248 SMM148 Corporate Finance and Valuation Financial Reporting Research Methods for Finance Professionals Statistics in Finance Theory of Finance Term two SMM464 SMM250 SMM147 SMM236 Advanced Corporate Finance Corporate Risk Management Financial Statement Analysis Topics in Mergers and Acquisitions Term three Option 1: Students can take two out of three core elective modules and three further specialist elective modules (5 x 10 credits). Option 2: Students can opt to write a 10,000 word business research project (1 x 40 credits) and take one specialist elective module (1 x 10 credits). Option 3: Students can opt to write a words applied research project (1 x 20 credits) and take three specialist elective modules. 5

7 Assessment matrix Module Title Term one Module Code Credits Assessment weightings used to calculate module mark Coursework Examination Corporate Finance and Valuation SMM % 75% Financial Reporting SMM % 75% Research Methods for Finance Professionals SMM % Statistics in Finance SMM % 75% Theory of Finance SMM % 75% Term two Advanced Corporate Finance SMM % 75% Corporate Risk Management SMM % 75% Financial Statement Analysis SMM % 75% Topics in Mergers and Acquisitions SMM % 75% Term three Option one Two of the following three core elective modules: Private Equity Investment SMM % The Economics of Corporate Governance SMM % Corporate Restructuring SMM % Plus three further specialist elective modules: Elective 1 SMMXX % Elective 2 SMMXX % Elective 3 SMMXX % Option two Business Research Project SMM % Elective 1 SMMXX % Option three Applied Research Project SMM % Elective 1 SMMXX % Elective 2 SMMXX % 6

8 Elective 3 SMMXX % Degree total 180 ECTS equivalencies Each MSc course is worth between UK credits, with each UK credit normally worth a notional ten of study. As a general rule two UK credits equal one ECTS* credit. (For example, a course with 180 UK credits is worth 90 ECTS credits.) Further information about this is available in your programme handbook. *ECTS (European Credit Transfer and Accumulation System) Note: Coursework may take the form of an individual assignment, group assignment or invigilated test. Some modules also include class participation. Where a module is assessed using group coursework, a percentage of the mark for the component may be determined by peer assessment. Please see section four of this handbook for further details. 7

9 Term dates and assessment periods Induction 12 September September 2016 Term one 26 September December 2016 Term one examinations 9 January January 2017 Term two 23 January March 2017 Term two examinations 24 April May 2017 Term three 6 May May 2017 (International Electives) 15 May June 2017 Term three assessments 26 June July 2017 Resit examinations and assessments (terms one, two and three) 14 August August 2017 Business Research Project / Applied Research Project submission date 1 September 2017 You are expected to attend lectures and other classes during term time and attend all invigilated tests and examinations. You should not make travel arrangements during term time or assessment periods. Any absence from any form of assessment, which does not constitute valid extenuating circumstances, will result in you needing to resit the module as a second attempt (mark capped at 50%). 8

10 Section 3 Module descriptions Module name Advanced Corporate Finance Module code SMM464 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 15 ECTS 7.5 Level 7 MODULE SUMMARY Module outline and aims The aim of this course is to develop an understanding of modern corporate finance so that the corporate manager, the investment banker and the financial analyst will have the conceptual foundations for making informed corporate assessments of key financial decisions. The course puts significant emphasis on the interactions between capital markets and the value of the underlying real assets. The course will make it possible for you to: appreciate the implications of modern finance theory on practical corporate finance issues develop analytical skills to evaluate complex corporate finance decisions understand the perspectives of corporate managers, shareholders, financiers and financial intermediaries of key financial decisions familiarise with contemporary corporate finance practice and market trends evolving in different countries. Content outline Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Session 7 Session 8 Session 9 Session 10 Capital Structure Decision: Fundamental Principles Capital Structure Decision in Practice Dividend Policy: Theoretical Background Dividend Policy: Empirical Evidence Corporate Restructuring Financial distress Issues in Valuation of Companies Corporate Governance and Firm s Financial Decisions Leasing Revision WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: know the key considerations affecting corporate finance decisions; understand the context and structure of corporate finance transactions; compete for management positions in corporate and financial institutions; 9

11 understand contemporary corporate finance practice and market trends evolving in different countries; understand the key considerations affecting corporate finance and valuation decisions; understand the context and structure of corporate finance and value related transactions. Skills: develop, evaluate and execute complex corporate finance deals; develop and execute complex corporate finance transactions; appreciate the implications of modern finance theory on practical corporate finance issues; undertake positions in corporate finance and financial institutions; appreciate and understand current market conditions and market perceptions work in different countries and understand their different approaches to Corporate Finance decision making appreciate the interaction between corporate finance and decision making. Values and attitudes: appreciate the potential conflicts of interests between shareholders, bondholders and managers; appreciate the wider social context of corporate finance decisions; appreciate the importance of the regulatory regime on corporate affairs. HOW WILL I LEARN? The course will comprise of ten sessions of three contact time each. You are expected to devote, at least, an equivalent amount of learning time in private and group study of course material and the preparation of case studies. The preparation of the coursework assessment will involve additional time in private and group study. The course is designed to follow a number of courses taught in the first term, including, Corporate Finance and Valuation where a number of issues on valuation and raising capital were developed, Theory of Finance which developed some of the key concepts (Modern Portfolio Theory, Capital Asset Pricing and Arbitrage Price Theory ), and Financial Reporting as most corporate finance decisions are based on accounting numbers in the financial statements. The notions developed in Statistics in Finance course will also be directly relevant. Case studies are used extensively throughout to illustrate theory and learn from real world situations. An important element of the course is the comparison of institutional and cultural differences across countries in the practice of Corporate Finance. Each session will consist of formal lecture, participative discussion and debate; case study presentations and the whole class is expected to contribute to the discussion. 10

12 Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Totals: Total student learning WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by a written examination weighted at 75% and a group coursework (including peer assessment) weighted at 25%. Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Exam Written Exam 75 0 N/A Group Coursework Written assignment, including essay 25 0 N/A Assessment criteria Standard MSc grade related assessment criteria will apply. Pass/Fail? Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. 11

13 INDICATIVE READING LIST Core Reading: Hillier, D., S. Ross, R. Westerfield, J. Jaffe and B. Jordan, 2010, Corporate Finance, McGraw-Hill Alternative Textbooks: Beck, J. and P. DeMarzo, 2014, Corporate Finance, 3rd Edition, Pearson International Edition, Brealey, R., S. Myers and F. Allen, 2014, Corporate Finance, McGraw-Hill, (11th edition). Damodaran, A., 2015, Applied Corporate Finance: A user s manual, 4 th Edition, John Wiley and Sons. Recommended reading: Up to date articles and research papers from academic journals and and financial press including Financial Times, and The Economist as well as case studies from Harvard Publications and other sources will be used to illustrate theory in real world applications. Some of the research papers used in the class include: Graham et al 2010 A review of Empirical Capital Structure Research, Available at SSRN: Graham, J. and C. Harvey, 2002, How do CFOs make capital budgeting and capital structure decisions? Journal of Applied Corporate Finance, 15, Booth, L., Aivazian, V., Demirguc-Kunt, A., and Maksimovic, V., 2001, Capital Structures in Developing Countries, The Journal of Finance, Volume 56, Issue 1, pages Alzahrani, M., and M. Lasfer, 2012, Investor protection, taxation, and dividends, Journal of Corporate Finance, 18, Kale, J. R., O. Kini, and J. D. Payne, 2012, The Dividend Initiation Decision of Newly Public Firms: Some Evidence on Signaling with Dividends, Journal of Financial and Quantitative Analysis, 47: Lee, B.S. and J. Suh, Cash holdings and share repurchases: International evidence, Journal of Corporate Finance 17, Journal of Applied Corporate Finance, Capital Deployment Roundtable A Discussion of Corporate Investment and Payout Policy, 26, 4 Dec 2014 FT article: feab49a.html#axzz2KUfgwGpq Apple under pressure on $137bncash pile Davidson Travis and Joel T. Harper, 2014, Off track: The disappearance of tracking stocks Journal of Applied Corporate Finance, Vol. 26, Issue 4, pp , 2014 Khorana, A., A. Shivdasani, and S.V. Sanzhar, 2011, Spin-Offs: Tackling the Conglomerate Discount Journal of Applied Corporate Finance, Vol. 23, Issue 4, pp , 2011 Economist article: - This article discusses conglomerates. Gilson JACF 2012 Coming through in crisis Chapter 11 12

14 Module name Corporate Finance and Valuation Module code SMM467 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 15 ECTS 7.5 Level 7 MODULE SUMMARY Module outline and aims The aim of this course is to introduce you to the field of corporate finance. This is achieved by familiarising you with the core theoretical principles, and equipping you with the basic and most commonly used practical finance tools. The material covered in this course is crucial for professional work in the area of corporate finance as well as for further study of more advanced or specialized corporate-finance-related courses. It is relevant for financial officers, economists, investment bankers, analysts, and other decision makers. The course is designed around several overarching principles such as the time value of money, market efficiency, and the goal of value maximization. The teaching material puts significant emphasis on relevant theories and their practical applications, and is informed by the pertinent academic research and examples from the corporate world from around the globe. Content outline Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Session 7 Session 8 Session 9 Session 10 Corporate Finance and the Corporate Objective Function Valuing Securities and Firms Evaluating Investment Projects: Alternative Decision Rules Dealing with Uncertainty in Capital Budgeting Cost of Capital Capital Structure: An Introduction Raising Capital: Equity Rasing Capital: Debt and Leasing M&As Revision WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to: Knowledge and understanding: know the key considerations affecting corporate finance decisions. understand the context and structure of corporate finance transactions. compete for management positions in corporate and financial institutions. develop, evaluate and execute complex corporate finance deals. Skills: appreciate the scope of corporate finance and its role in achieving the corporate objective. 13

15 understand the perspectives of corporate managers, shareholders, and other stakeholders, and realize potential conflicts of interest between them. master the concept of the time value of money for making informed and carefully evaluated financial decisions. understand the risk-return trade-off and the key tools for assessing risk in capital markets. develop analytical tools for estimating the cost of equity, debt and total capital for private and listed companies. understand the role of capital structure, the process and the costs of raising capital and its redistribution. appreciate the complexities of corporate investment decisions and their sensitivity to risk and uncertainty. master tools used for assessment of investment projects and develop analytical skills to assess the value of private and listed companies. appreciate the role of takeovers and other restructuring activities in the corporate world. Values and attitudes: appreciate the wider social context of corporate finance decisions appreciate the importance of the regulatory regime on corporate affairs HOW WILL I LEARN? This module will be delivered primarily through lectures and will use: Simulation exercises and evaluation of market reaction to news announcement Case studies and real life examples Development and analysis of empirical evidence Analysis of contemporary financial issues Role playing Practitioner presentations Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Totals: Total student learning 14

16 WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by an examination weighed at 75% and an invigilated test weighted at 25%. Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Exam Written Exam 75 0 N/A Coursework test Set exercise 25 0 N/A Pass/Fail? Assessment criteria Standard MSc grade related assessment criteria will apply. Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Recommended texts The following two textbooks are perfectly interchangeable and you can choose either one: Hillier D., Ross S., Westerfield R., Jaffe J. and Jordan B. (2013) Corporate Finance. (2 nd European Edition). McGraw-Hill (ISBN: ) Megginson W., Smart S., Graham, J. (2010), Financial Management: Linking Theory to What Companies Do, 3 rd Edition, South-Western/Cengage Learning (ISBN: ) 15

17 Alternative texts: Brealey R., Myers S., Allen F. (2013), Principles of Corporate Finance. (11 th Edition). McGraw-Hill (ISBN ) The following two are more advanced texts: Hillier D., Grinblatt M. and Titman S. (2011) Financial Markets and Corporate Strategy. (2 nd European Edition). McGraw-Hill (ISBN ) Vernimmen P., Quiry P., Dallocchio M., Le Fur Y. and Salvi A. (2011) Corporate Finance: Theory and Practice. (3 rd Edition). Wiley (ISBN ) You are also expected to read relevant research papers from the top academic finance, economics, and accounting journals and follow recent developments in the corporate world by reading the financial press, e.g. Financial Times, The Wall Street Journal, The Economist, and by visiting web-based resources such as Bloomberg and Reuters. 16

18 Module name Corporate Restructuring Module code SMM225 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 10 ECTS 5 Level 7 MODULE SUMMARY Module outline and aims This module is designed to expose students to a broad range of different restructuring practices and outcomes. The themes include restructuring and divestitures, restructuring organisation & ownership relationships and financial restructuring. It provides a knowledge and understanding of the strong connections between effective ongoing corporate restructuring, strategic and operational performance and enterprise value. You will be asked to consider various corporate restructuring options and approaches which can be taken by organisations in differing circumstances, for example distress restructuring, strategic splits, strategic alliances and refinancing etc. You will also review and consider the ethical and moral imperatives of corporate restructuring in the current environment. The aim of this module is to provide you with an understanding of the methods and approaches to corporate restructuring and their relevance in differing circumstances. This includes developing an understanding of the rationale for corporate restructuring and its links with corporate finance, strategy and value creation. You will understand how corporate restructuring can contribute to corporate survival, growth, performance and value. Content outline The rationale and major drivers for corporate restructuring Restructuring frameworks Asset reorganisation Financial reorganisation o Ownership - spin-offs, equity carve-outs, tracking stock and split-ups o Conglomerate discount and divestitures Interaction with strategic development and performance Valuation and measurement issues Capital and funding structures Leverage impacts Cooperative restructuring o Joint ventures o Strategic Alliances Distress restructuring Internal corporate restructuring Market driven Performance driven Restructuring in the current environment o Ethical and moral imperatives in corporate restructuring 17

19 WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding Understand the different waves of corporate restructuring Have a broad overview of corporate restructuring approaches Understand how corporate restructuring techniques can increase firm value Understand the strong relationship between corporate restructuring and strategic and operational performance and enterprise value Skills Value companies Spot potential candidates for particular restructurings Apply a framework for analysing restructurings based on corporate valuation techniques Value restructuring strategies Assess market reaction to restructuring announcements Build careers in corporate finance, investment banking, strategy and performance consulting, investment management and company distress and turnaround management Values and attitudes Show awareness of the importance of restructuring techniques as a means to deliver strategic and operational performance and value Show awareness of the impact that different types of restructuring have on capital markets Show appreciation of the interactions between strategy and capital structure HOW WILL I LEARN? This module will be taught primarily through lectures and the use of real life examples and cases. Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lectures Lecture Examples/cases Seminar Totals: Total student learning 18

20 WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed through100% coursework comprising an invigilated test Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Invigilated test Set exercise N/A Standard MSc grade related assessment criteria will apply. Pass/Fail? Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Weston, Mitchell and Mulhearn: Takeovers, Restructuring, & Corporate Governance Prentice Hall, 2004 J Zhoa, M D Michalisin, C I Stubbart: Restructuring Strategies that Change Corporate Performance, Advances in Competitivness Research, Vol 19 (1 & 2), 2011 J Kim & A Parkhe: Competing and Cooperating Similarity in Global strategic Alliances: an Exploratory Examination, British Journal of Managemnt, Vol 20, 2009 S Guo, E S Hotchkiss, W Song: Do Buyouts Still Create Value? The Journal of Finance, April 2011 S N Kaplan & P Stromberg: Leveraged Buyouts and Private Equity, Journal of Economic Perspectives, Vol 23, no L Oxelheim and C Wihlborg: Corporate Distress and Restructuring with Macroeconomic Fluctuations: the Cases of GM and Ford, Journal of Applied Finance, March 2012 G Owen & T Harrison: Why ICI Chose to Demerge, Harvard Business Review, March/April 1995 D Champlin: Towards the Ethics of Corporate Restructuring International, Journal of Social Economics, Vol 25,

21 Module name Corporate Risk Management Module code SMM250 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 15 ECTS 7.5 Level 7 MODULE SUMMARY Module outline and aims The module will make it possible for you to acquire an understanding of the principal objectives and constraints of corporate risk management The aim of this module is to provide you with an understanding of the multinational corporation, the global risk management markets and the use of derivatives and other hedges to mitigate risk exposures Content outline The global FX, debt and derivatives markets Covered arbitrage and forward FX rates Forwards, futures, swaps and options in FX Forward interest rate agreements, swaps and swaptions Integrated risk management WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding Understand theory and practice of FX Develop an understanding of interest rate and commodity risks and the methods available to mitigate them, thereby creating shareholder value. Skills Apply analytical and quantitative problem-solving skills Work effectively in teams Apply a hands-on understanding of the strengths and limitations of risk management strategies Present problems and the full range of possible solutions Use market data to model financial decisions through computer modelling. Values and attitudes Show awareness of the importance and limitations of the models applied to international financial risk management. 20

22 HOW WILL I LEARN? Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Totals: Total student learning WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by a written examination weighted at 75% and a group coursework (including peer assessment) weighted at 25%. Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Examination Written Exam 75 0 N/A Group Coursework Written assignment, 25 0 N/A including essay Assessment criteria Standard MSc grade related assessment criteria will apply. Pass/Fail? Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components 21

23 can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Stulz, Rene, Risk Management and Derivatives. (1 st Edition). Cengage Learning. 22

24 Module name Financial Reporting Module code SMM249 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 15 ECTS 7.5 Level 7 MODULE SUMMARY Module outline and aims The aim of the course is to provide you with an understanding of the principles and practices of accounting, the characteristics and limitations of accounting data. The course will make it possible for you: to prepare and interpret financial statements to comment on accounting policies and to discuss its implication for the financial performance of the business to use accounting information to assess the financial situation of a company. Content outline Preparation of financial statements from source data incorporating: Recording business transactions and preparing financial statements Accrual and cash accounting Inventory transactions Accounting for non-current assets, long-term liabilities and off-balance sheet debt Accounting for equity and cash flow statements Accounting for mergers and acquisition, inter-corporate investments, group accounting and foreign exchange translation WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding Understand the accounting principles and methods underlying financial reporting Read, understand and analyse financial statements. Skills Marshal and interpret financial and accounting data Work in positions where an understanding of financial reporting can be communicated effectively Prepare, interpret and analyse financial statements using alternative accounting policies Evaluate current accounting practices, their motivation and their economic impact. 23

25 Values and attitudes Appreciate the variety of accounting methods and their individual economic repercussions Be sensitive to, and be capable of responding to, developments in the appropriate institutional frameworks Be responsive to firm-specific or country-specific demands in terms of accounting practices and methods. HOW WILL I LEARN? This module will be taught primarily through lectures and tutorials and will include: Presentation of concepts and theories Analysis of contemporary accounting issues Detailed lecture notes Class discussion of theories Class discussion of problems Class discussion of research articles Case studies Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Classes Tutorials Totals: Total student learning WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by an examination weighted at 75% and a coursework test weighted at 25%. Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Coursework Set exercise 25 0 N/A invigilated test Examination Written Exam 75 0 N/A Pass/Fail? 24

26 Assessment criteria Standard MSc grade related assessment criteria will apply. Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Stolowy, H. and M.J. Lebas. Financial Accounting and Reporting. A Global Perspective. 4 th Edition, 2013, Cengage Learning (ISBN ) Collins, B. and J. McKeith. Financial Accounting and Reporting. 2 nd Edition, McGraw-Hill (ISBN ) Deegan, C. and Ward, A.M. Financial Accounting and Reporting McGraw-Hill (ISBN ) 25

27 Module name Financial Statement Analysis Module code SMM147 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 15 ECTS 7.5 Level 7 MODULE SUMMARY The ability to understand and analyse financial statement information is a key skill in a wide range of business activities, from managing a corporation to investing in securities. The overall aim of this module is to help students learn and practise a variety of financial statement analysis techniques which can support business decision-making processes. Module outline and aims To provide a clear understanding of how users of financial information interpret accounting reports when making business decisions. To identify and practise financial statement analysis techniques for performance assessment, credit analysis and investment decisions. To examine certain areas of accounting that create special financial statement analysis issues, such as accounting for employee benefits, leases and research & development activities Content outline Basic techniques in financial statement analysis Simple ROE DuPont analysis Reformulating the financial statements The return on net operating assets (RNOA) Credit analysis Complex ROE DuPont analysis The analysis of corporate income taxes Adjusting the financial statements for employee benefits, lease contracts and research & development activities WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding Understand the role of accounting as an input in the decision-making process of variety of users of financial statement data (e.g. equity investors, lenders, management etc) Understand certain potential distortions in the accounting information presented under GAAP rules Knowledge of a variety of financial statement analysis techniques 26

28 Skills Reformulate the financial statements to facilitate their analysis Adjust the financial statements to correct for certain possible distortions Analyse financial statements in order to: o Assess the performance of a business o Assess the credit risk of a business o Calculate returns on investment and identify their key drivers o Calculate inputs for corporate valuation models. Values and attitudes Appreciate current accounting practices, their motivation and their economic impact Identify signs of possible creative accounting practices Awareness of current controversies about the presentation and communication to the capital markets of financial statement information HOW WILL I LEARN? This module will be taught primarily through lectures and tutorials and will include class discussions of theories, problems and research articles as well as case studies and practitioner presentations. Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Total student learning Totals: WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by a written examination weighted at 75% and a Midterm test weighted at 25%. 27

29 Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Exam Written Exam 75 0 N/A Midterm test Written 25 0 N/A Assignment Assessment criteria Standard MSc grade related assessment criteria will apply. Pass/Fail? Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Robinson, Henry, Pirie and Broihahn (2015) International Financial Statement Analysis. (3 rd Edition). Wiley Penman (2013) Financial Statement Analysis and Security Valuation. (5 th Edition). McGraw-Hill Alexander, Britton and Jorissen (2014) International Financial Reporting and Analysis. (6 th Edition). Cengage 28

30 Module name Private Equity Investment Module code SMM528 School Cass Business School Department or equivalent Specialist Masters Programme UK credits 10 ECTS 5 Level 7 MODULE SUMMARY Module outline and aims The objective of this module is to provide you with a broad appreciation of private equity. It is not intended to prepare you for becoming a practitioner in the private equity sector or to teach detailed technical aspects of private equity practice (eg, performing due diligence). However, it will provide a useful introduction for those of you with future career interests in the private equity sector and has proved helpful to those seeking employment in the private equity industry. Content outline Overview of Global Private Equity Introduction to Venture Capital Introduction to Buyouts The Private Equity Investment Lifecycle Valuing and Structuring Venture Capital Deals Valuing Buyout Deals The Adjusted Present Value Method Class Case Discussion - Centex Telemanagement, Inc Modelling and Structuring Buyout deals Class Case Discussion Berkshire Partners: Bidding for Carters How Private Equity Funds Work Drivers of Private Equity Fund Returns Measuring And Benchmarking Private Equity Fund Performance Class Case Discussion Chips On The Side (A): The Buyout of Avago Technologies Private Equity As An Asset Class Role Of Private Equity In The Modern Diversified Multiple-Asset-Class Investment Portfolio Some Practical Private Equity Investment Considerations Class Case Discussion Yale University Investments Office: February 2011 WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and Understanding Understand how private equity has evolved over time, its global structure and importance Discuss the distinctive characteristics of the two primary forms of private equity 29

31 Venture Capital and Buyouts the role they play in the economy, their investment economics, returns, risks, skill requirements, and similarities and differences Recognise the key phases and disciplines of the private equity investment life-cycle, as well as the time scale for investing and realising value from private equity investments Know how private equity funds work and understand their economics Appreciate the role played by private equity in the overall investment portfolio, the distinctive characteristics of private equity as an important asset class, and the practical considerations important to institutional investors when investing in private equity funds Skills Understand how prospective private equity deals are sourced and what framework to use for evaluating and negotiating deals Know the techniques for modelling and valuing private equity deals. Understand what your job would be as a private equity fund manager and how you would interact with portfolio company entrepreneurs in adding value to their investments Know what investment returns to expect and how returns are measured and benchmarked Values and attitudes Understand the conflicting incentives and pressures amongst entrepreneurs, fund managers, and institutional investors and the critical need for judgement and balance to be applied, as well as the potential for financial and ethical conflicts of interest to arise Appreciate the long-term perspective required for successful private equity investment and how fair-minded, ethical behaviour supports good performance Recognise the necessity and importance of making business decisions when available information is incomplete and imperfect HOW WILL I LEARN? The module is practically oriented and aimed at providing a real-world understanding of the private equity investment process. Lectures concentrate on providing an overall framework for understanding private equity, as well as teaching specific concepts and technical skills important to private equity, such as company valuation techniques and modelling. The technical content of lectures is reinforced by problem sets assigned as homework with the correct solutions presented and discussed in class. A practical understanding of evaluating, valuing, and negotiating deals is gained through the analysis and class-room discussion of case studies based on actual situations, as well as interaction with guest lecturers from the private equity sector. The problem sets are linked to the case studies. Lectures. Lecture notes are provided to assist you in preparing for lectures. However, additional information will be discussed and provided during lectures, most particularly the solutions to problem sets and information associated with the class discussion of cases. Pre-Class Readings. There is no single book that covers the module content adequately. Therefore, pre-class readings will be made available to assist your learning. These readings, together with the class notes, problem sets/solutions, and lecture presentation 30

32 slides, should allow you to master the course content. Case Studies. Preparation of case studies and participation in class discussion of the cases is an important part of the learning process. In addition to providing a real-world picture of how private equity works in practise, the case studies will give you an opportunity to integrate and employ knowledge gained in previous MSc modules. Students will be called upon to provide their analysis of and solutions for the case orally in class. You will be encouraged to discuss the cases before class in groups in order to profit from the experience and insights of others. Problem Sets. Problem sets will be assigned before class sessions and will be an essential input to the discussion of cases, as they will provide important inputs to the discussion of cases in class. Problem set solutions will be discussed during the class when there will be ample opportunity to ask questions to ensure you understand how to solve the problems. Guest Lecturers. Guest Lecturers - all leading practitioners in the field - will participate in most class-sessions and will provide an important input to your learning. They will present aspects of private equity not covered elsewhere in the course and will provide you with an opportunity to interact in Q&A sessions. As an example, past Guest Lecturers have included: Mr Richard Anton General Partner, Amadeus Capital Partners Chairman, British Private Equity & Venture Capital Association Guest Lecturer: Mr Kurt Bjorklund Co-Managing Partner, Permira Advisers Mr Tim Bunting General Partner, Balderton Capital Mr Tim Church, President, McKinsey Investment Office Mr Simon Clark - Managing Partner, Fidelity Growth Partners; Chairman, British Private Equity & Venture Capital Association Mr Robert Coke Head of Buyouts and Absolute Return, Wellcome Trust Mr William Cornog Global Head of KKR Capstone Mr Louis Elson, Co-Founder & Managing Partner, Palamon Capital Partners Mr Nicholas Ferguson Founder & Chairman, SVG Capital; former Founder & Chairman, Schroder Ventures/Permira Mr Nigel Grierson, Founder & Co-Managing Director, Doughty Hanson Technology Ventures Mr Jon Moulton - Founder and Chairman, Better Capital Mr Jan Petzel, Executive Director, Goldman Sachs Capital Partners Ms Erin Smith Global Head of Business Development, Misys plc Mr Robert Wallace CEO, Alta Advisers Ltd, former Director, Yale University Investments Office Teaching pattern Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Totals: Total student learning 31

33 WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module will be assessed by 100% coursework comprising a final invigilated test (80%) and participation in class, in particular with regard to discussion of cases (20%). Lack of participation in class, including class attendance, will mean you will be unable to access the full range of marks for the module. Further details about what is expected of you in class will be made available by the module leader at the beginning of the course. Assessment pattern: Assessment component Assessment type Weighting Minimum qualifying mark Invigilated test Set exercise 80 N/A N/A Class participation Set exercise 20 N/A N/A Assessment criteria: Standard MSc grade related assessment criteria will apply. Pass/Fail? Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully. Grade related criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment criteria and grade related criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following assessment, you will be given your marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The pass mark for the module is 50%. Any minimum qualifying marks for specific assessments are listed in the table above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Inside Private Equity James Kocis, James Bachman, Austin Long, Craig Nichols (2009, Wiley) International Private Equity Eli Talmor, Florin Vasvari (2011, Wiley) Valuation: Measuring and Managing The Value of Companies - Tim Koller, Marc Goedhart, David Wessels (2010, Wiley) Private Equity Exits Stefan Povaly (2007, Springer) 32