MSIN0039: CORPORATE FINANCIAL STRATEGYv17.08.20

AY2020-21 MODULE SUMMARY FACT SHEET  (For greater detail, refer to v16.08.20 Module Outline)

OVERVIEW OF MODULE INCLUDING SUMMARY OF CONTENT

This popular UCL School of Management undergraduate Electives module considers a wide range of important strategic financial key issues and concepts confronting corporations’ senior financial officers today. FDs and CFOs comprise the largest future source of CEOs of publicly-traded firms. Yet “CFS” is also designed to be interesting & of future use to numerous others, including but not limited to: financial consultants, advisors and bankers dealing with CFOs/FDs and general management-oriented students who appreciate that financial & investment strategies aimed at maximising shareholder value are paramount in business decision-making today and into the future.

Focus is on alternative opportunities/threats encountered by the FD/CFO in key areas: working capital management, optimal

capital structure, internal and external investment advanced

evaluation, financial plan development (both immediate and over the company’s entire financial lifespan), buy back and dividend decisions, use and mis-use of corporate gearing (leverage), internal profit improvement initiatives, financial sourcing, make v buy financial decisions, bankruptcy and basic tax strategy, dividends and share buy-backs, an overview-level introduction to the Capital Asset Pricing Model (CAPM) and Weighed Average Cost of Capital (WACC) analysis, and management of relationships with the investment community.

LEARNING OUTCOMES

Upon successful completion of the module, students will:

· Have a practical understanding of the elements comprising the Capital Asset Pricing Model (CAPM) and its application to both debt and equity planning

· Comprehend issues and trade-offs in sometimes conflicting financial objectives of the firm relating to: liquidity, safety, near-term v future performance, investment funds adequacy and external perceptions of creditworthiness

· Understand and be proficient at applying an expansive range of optimal capital structure (OCS) alternative approaches depending on company future objectives and circumstances

· Understand when and how dividend and buy-backs increase corporate value and when they do not

· Understand both the potential and the dangers associated with primary reliance on high leverage techniques in attempt to increase return on equity & return on investment.

· Effective use tools such as Competitive Analysis Period (CAP), Corporate Value Lifespan / Debt Servicing Advance Strategy, IPO as primary single source of the corporation’s equity lifeblood

· Understanding the differences and consequences of short-term versus continuing profit maximisation financial strategies.

TOPICS COVERED INCLUDE BUT ARE NOT LIMITED TO

· Working capital management and tradeoffs

· Optimal Capital Structure (OCS)

· Internal (CAPEX) investment analysis

· External (M&A) financial decision-making

· Evaluation of dividend, buy-back policies

ASSESSMENT SUMMARY

· Financial plan development

· Internal-external financial sourcing

· Company financial lifespan

· Debt and equity strategies

· Leverage management and mis-management