University of Bath (UOB) • University of Bath
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Modules University of Bath at University of Bath (UOB)
Notes available for the following courses of University of Bath at University of Bath (UOB)
- MN10001: People and Organisations 1 MN10001 1
- MN10005: People & Organisations 2 MN10005 1
- MN10311: Corporate finance and investment appraisal MN10311 9
- MN10403: Financial markets context international 1
- MN10442: Introduction to Business Law MN10442 1
- MN10466: Accounting and organisations 1
- MN10476: Accounting for Managers MN10476 1
- MN10500: Corporate Finance for Managers MN10500 9
- MN10574: Business Economics MN10574 2
- MN20012: Economics of the Firm and Industry MN20012 1
- MN20014: Managing Enterprise Information Systems MN20014 1
- Mn20016: Marketing MN20016 1
- MN20018: Financial accounting and reporting 3
- MN20019: Management accounting 2
- MN20026: Principles of finance 1
- Mn20027: Economics of Strategy: Rivalry MN20027 1
- MN20211: Advanced corporate finance 2
- MN20310: Empirical research methods in finance 1
- MN20485: Accounting and Decision Making for Manage MN20485 1
- MN20502: Principles of Finance for Managers MN20502 1
- MN20547: Strategic financial decisions 1
- Mn30209 investment banking 1
- MN30315: Advanced financial accounting 6
- MN30316 risk management and internal control 2
- MN30449: Strategic management MN30449 3
- Mn30469 in class test 2
- MN30469: Advanced management accounting 8
- Mn30470 investment trading 2
Latest notes & summaries University of Bath (UOB) • University of Bath
Excellent, very detailed notes on every lecture. Received the highest exam grade out of everyone taking the module.
Lecture Summary: Assessing Your Firm's Payout Policy 
● Compare your firm’s dividends to its FCFE, looking at the last 5 years of 
information. 
● Based upon your earlier analysis of your firm’s project choices, would you 
encourage the firm to return more cash or less cash to its owners? 
● If you would encourage it to return more cash, what form should it take (dividends versus stock buybacks)? 
● Customize a solution for your firm’s dividend policy, but think about your earlier...
Lecture Summary 
● The trade-off between debt and equity. 
○ Benefits 
○ Costs 
● Alternative capital structure theories and empirical evidence. 
● The (simplified) cost of capital model to determine the optimal debt-equity 
combination that minimises WACC.
Corporate Financing Patterns 
● Internally generated funds: 
○ Retained earnings/plowback profit 
● External sources of finance: 
○ Debt 
○ Equity 
● Firms may raise funds from external sources or plow back profits (internal funds). 
External financing involves the choice between debt & equity. 
● In practice, there are securities lying between the spectrum of 'pure' debt & equity 
and they are sometimes called 'mezzanine' or 'hybrid' securities.
Lecture Summary 
● Market risk is the only relevant risk in a diversified portfolio. 
● Capital Asset Pricing Model (CAPM) 
○ Calculations 
○ Critiques: Its assumptions & arguments/evidence against them. 
● Cost of Capital (WACC) 
○ Always after-tax, unless otherwise indicated.
Lecture Summary 
● Common measures of risk and return 
○ Compare different asset classes 
● Portfolio risk and return 
○ Return as weighted-average return 
○ Risk (in most cases) not weighted-average, but dependent on correlation. 
● Diversification 
○ Market (systematic) and unique (firm-specific) risks.
Lecture Summary 
● Calculations: 
○ Payback Period 
○ NPV (not the 'normal' IRR) 
○ Investment decisions under Capital Rationing 
○ Modified IRR 
● Advantages and disadvantages of alternative investment appraisal techniques: 
○ NPV is the most accurate method in most cases.
Lecture Summary 
● Characteristics of bonds 
● Bond price as the present value of coupons and principal 
● Characteristics of equity (stock) 
● Dividend Discount Model: Calculations and critiques 
● Constant Dividend Growth Model: Calculations and critiques
Notes taken from the lecture on The Time Value of Money. 
A more detailed guide on the basics of present value and future value of money, and related concepts.
Notes are taken from the lecture, on the topic Basics of Corporations.