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  6. FI3008: Applied Corporate Finance

FI3008: APPLIED CORPORATE FINANCE (2025-2026)

Last modified: 20 Jun 2025 15:10


Course Overview

Applied Corporate Finance provides students with the knowledge about the fundamental theories and emerging issues in corporate finance. The course introduces the issues facing a corporate manager and equip students with the analytical skills necessary for evaluating corporate financial policies. Important issues covered by the course such as cost of capital, value of debt and its associated risks, leasing, credit risk analysis, management of working capital, will be explored from both theoretical and practical perspectives.

Course Details

Study Type Undergraduate Level 3
Term First Term Credit Points 15 credits (7.5 ECTS credits)
Campus Aberdeen Sustained Study No
Co-ordinators
  • Dr Huong Vu
  • Dr Daniel Gyimah

What courses & programmes must have been taken before this course?

  • Either Programme Level 3 or Programme Level 4
  • Any Undergraduate Programme (Studied)
  • FI2004 Finance 2: Business Finance (Passed)
  • One of Finance (FI) or Master Of Arts In International Business or Master Of Business In International Business or Master Of Business In International Business With Gaelic or Master Of Business In International Business With French or Master Of Business In International Business With German or Master Of Arts In International Business With Spanish or Master Of Business In International Business With Spanish or Master Of Arts In International Business With Gaelic or Master Of Arts In International Business With French or Master Of Arts In International Business With German or Master Of Arts In International Business With Mandarin or Master Of Business In International Business With Mandarin

What other courses must be taken with this course?

None.

What courses cannot be taken with this course?

Are there a limited number of places available?

No

Course Description

The course aims to equip students with the understanding of theoretical underpinnings, and the analytical skills to assess the implications of various financing policies faced by corporate managers.

Topic areas may include but may not be limited to:

  1. Concepts of risk and the models of risk: - explore the concepts of risk, different types of risks (systematic risk vs unsystematic risk), how risks are measured, the relationship between risk and return under uncertainty, and how these matters influence investors’ asset allocation decisions. The course also introduces various models of risks such as CAPM, multi-factor models.
  2. Value of bonds and its associated risks: - introduce the valuation models of corporate bonds, the different kinds of risks associated with bonds and techniques used in evaluating bond risk.
  3. Cost of capital: - equip students with the different techniques used in estimating cost of equity, cost of debt and the weighted average cost of capital. The topic also discovers the factors imperative to cost of capital and the difficulties faced by corporate managers.
  4. Credit risk: - this topic equips students with different tools and models to analyse a company’s credit quality, enabling them to make informed decisions on lending, investment, and risk management.
  5. Leasing: - introduce leasing and the use of leases in corporate finance including operating leases and financial leases. The topic also explores the motivations for firms to use leases and the value of leases.
  6. Working capital management: - explore different types of current assets and current liabilities. Students will learn the tools used for effectively managing these assets and liabilities. By examining the theories and topical issues in practice, students will develop skills necessary to evaluate working capital policies from different angles.
  7. Real options: - provide students with the tools to analyse the real options in appraising investment opportunities under uncertainty. Different types of real options that will be introduced by the course are expansion, timing, and abandonment.

 


Contact Teaching Time

Information on contact teaching time is available from the course guide.

Teaching Breakdown

More Information about Week Numbers


Details, including assessments, may be subject to change until 31 August 2025 for 1st Term courses and 19 December 2025 for 2nd Term courses.

Summative Assessments

Class Test

Assessment Type Summative Weighting 20
Assessment Weeks 14 Feedback Weeks 16

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Feedback

75-minute class test. 
Learning Outcomes
Knowledge LevelThinking SkillOutcome
ConceptualUnderstandDemonstrate a deep understanding of key theories and concepts in corporate financial management.
ReflectionEvaluateIdentify and evaluate emerging issues in corporate finance practice applying the relevant theories and analytical tools learned in the course.
ReflectionEvaluateEnhance knowledge, evaluate the corporate finance concepts and theories, incorporating insights from the latest literature.

Exam

Assessment Type Summative Weighting 80
Assessment Weeks Feedback Weeks

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Feedback

2-hour written exam, taking place during university exam weeks. Marks are released to students after exam board has taken place.
Learning Outcomes
Knowledge LevelThinking SkillOutcome
ConceptualUnderstandDemonstrate a deep understanding of key theories and concepts in corporate financial management.
ProceduralApplyApply valuation models and techniques such as risk-return models, bond valuation methods, credit risk assessment and real option analysis to evaluate different financial and investment policies.
ReflectionEvaluateIdentify and evaluate emerging issues in corporate finance practice applying the relevant theories and analytical tools learned in the course.
ReflectionEvaluateEnhance knowledge, evaluate the corporate finance concepts and theories, incorporating insights from the latest literature.

Formative Assessment

There are no assessments for this course.

Resit Assessments

Exam

Assessment Type Summative Weighting 100
Assessment Weeks 49,50 Feedback Weeks

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Feedback

2-hour Resit Exam. 
Learning Outcomes
Knowledge LevelThinking SkillOutcome
Sorry, we don't have this information available just now. Please check the course guide on MyAberdeen or with the Course Coordinator

Course Learning Outcomes

Knowledge LevelThinking SkillOutcome
ConceptualUnderstandDemonstrate a deep understanding of key theories and concepts in corporate financial management.
ProceduralApplyApply valuation models and techniques such as risk-return models, bond valuation methods, credit risk assessment and real option analysis to evaluate different financial and investment policies.
ReflectionEvaluateIdentify and evaluate emerging issues in corporate finance practice applying the relevant theories and analytical tools learned in the course.
ReflectionEvaluateEnhance knowledge, evaluate the corporate finance concepts and theories, incorporating insights from the latest literature.
 

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