NBS8005 : Corporate Strategy and Valuation
NBS8005 : Corporate Strategy and Valuation
- Offered for Year: 2024/25
- Module Leader(s): Dr Zhijuan Wu
- Lecturer: Professor David Higgins
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
Semesters
Your programme is made up of credits, the total differs on programme to programme.
| Semester 1 Credit Value: | 10 |
| Semester 2 Credit Value: | 10 |
| ECTS Credits: | 10.0 |
| European Credit Transfer System | |
Pre-requisite
Modules you must have done previously to study this module
Pre Requisite Comment
None
Co-Requisite
Modules you need to take at the same time
| Code | Title |
|---|---|
| NBS8003 | Financial Information Analysis |
| NBS8006 | Accounting for Analysts |
Co Requisite Comment
NBS8003 – Financial Information Analysis.
NBS8006 – Accounting for Analysts
Aims
To develop students understanding of corporate behaviour in different market structures and corporate equity valuation.
Outline Of Syllabus
Semester 1:
Demand Analysis; Production Analysis; Models of market structure and firm conduct
Market structure: Perfect Competition; Monopoly
Market structure: Oligopoly
Pricing strategies: Price Discrimination and barriers to entry
Models of non-price competition: Advertising and research and development
Other strategies: Diversification and mergers and acquisitions
Alternative managerial theories of the firm
Semester 2:
Equity Valuation: Application and Processes
Return Concepts
Discounted Dividend Valuation
Free Cash Flow Valuation
Residual Income Valuation
Relative Valuation: Multiples
Learning Outcomes
Intended Knowledge Outcomes
At the end of this module students will be able to:
1. Evaluate the behaviour of corporations in different market structures, develop an appreciation of how the use of strategic variables such as price and product differentiation affect this behaviour, and appraise the impact of external forces, such as government policy and the market for corporate control, on company behaviour.
2. Have an appreciation of valuation process and apply appropriate techniques to corporate equity valuation.
Intended Skill Outcomes
At the end of this module students should be able to:
1. Think critically and use information and knowledge to solve complex problems and make decisions related to corporate behaviour and equity valuation.
2. Demonstrate quantitative and qualitative skills through the written examination.
Teaching Methods
Teaching Activities
| Category | Activity | Number | Length | Student Hours | Comment |
|---|---|---|---|---|---|
| Guided Independent Study | Assessment preparation and completion | 1 | 60:00 | 60:00 | N/A |
| Scheduled Learning And Teaching Activities | Lecture | 1 | 2:00 | 2:00 | PIP lecture for S1 to cover the fundamental maths for Economics |
| Scheduled Learning And Teaching Activities | Lecture | 1 | 1:00 | 1:00 | PIP revision lecture for the S1 content |
| Scheduled Learning And Teaching Activities | Lecture | 17 | 2:00 | 34:00 | PIP lectures (S1 8*2-hour + S2 9*2-hour) |
| Guided Independent Study | Directed research and reading | 1 | 48:00 | 48:00 | N/A |
| Scheduled Learning And Teaching Activities | Small group teaching | 6 | 1:00 | 6:00 | PIP seminars (S1 3*1-hour + S2 3*1-hour) |
| Scheduled Learning And Teaching Activities | Drop-in/surgery | 1 | 1:00 | 1:00 | PIP drop-in session for the S2 content |
| Guided Independent Study | Independent study | 1 | 48:00 | 48:00 | N/A |
| Total | 200:00 |
Teaching Rationale And Relationship
The lectures/lecture material are used to impart basic knowledge and understanding of corporate strategy and valuation, although lecture sessions will also involve some elements of discussion and workshop activities. The small group teaching provides students an opportunity to practise certain knowledge and skills and gain feedback thereon. The subject requires a good deal of additional reading to supplement the lecture materials and provide a greater depth of understanding, as well as increasing exposure to the research literature. The drop-in sessions are scheduled during revision period to help with examination preparation.
Reading Lists
Assessment Methods
The format of resits will be determined by the Board of Examiners
Exams
| Description | Length | Semester | When Set | Percentage | Comment |
|---|---|---|---|---|---|
| Written Examination | 180 | 2 | A | 100 | N/A |
Formative Assessments
Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.
| Description | Semester | When Set | Comment |
|---|---|---|---|
| Prob solv exercises | 1 | M | In-class questions provided |
| Prob solv exercises | 2 | M | In-class questions provided |
Assessment Rationale And Relationship
The written examination will test the knowledge and understanding of the material covered, as well as specific technical skills in valuation of companies. It will also test communication, analytical skills and numeracy.
In the case of an alternative semester 2 assessment (worth 100% of the overall module mark) being necessary due to circumstances, the module leader will in the first instance consult with the DPD as to the requirements of the professional accrediting body to discuss possible acceptable alternatives. In 2020/21 this alternative was a 24 hour take home exam delivered online, and it is envisioned that if circumstances do not allow a present-in-person timed exam at the end of semester 2, and the professional body agrees, then this may well be an example of the type of alternative assessment which could be put in place.
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- NBS8005's Timetable
Past Exam Papers
- Exam Papers Online : www.ncl.ac.uk/exam.papers/
- NBS8005's past Exam Papers
General Notes
N/A
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The information contained within the Module Catalogue relates to the 2024 academic year.
In accordance with University Terms and Conditions, the University makes all reasonable efforts to deliver the modules as described.
Modules may be amended on an annual basis to take account of changing staff expertise, developments in the discipline, the requirements of external bodies and partners, and student feedback. Module information for the 2025/26 entry will be published here in early-April 2025. Queries about information in the Module Catalogue should in the first instance be addressed to your School Office.