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Module

NBS8005 : Corporate Strategy and Valuation

  • Offered for Year: 2021/22
  • Module Leader(s): Dr Zhijuan Wu
  • Lecturer: Professor David Higgins
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semesters
Semester 1 Credit Value: 10
Semester 2 Credit Value: 10
ECTS Credits: 10.0

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
Structure-Conduct-Performance; Perfect Competition; Monopoly
Price Discrimination; Multi-Product Firms; Non-Linear Pricing
Intertemporal Pricing; Early Managerial Theories; Advertising
Oligopolistic Competition
Collusion; Regulatory Intervention
Managerial Theories of the Firm; Market for Corporate Control

Semester 2:
Equity Valuation: Application and Processes
Return Concepts
Discounted Dividend Valuation
Free Cash Flow Valuation
Residual Income Valuation
Relative Valuation: Multiples

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture132:0026:00PIP lectures (S1 7*2-hour + S2 6*2-hour)
Structured Guided LearningLecture materials41:004:00Pre-recorded lecture material (S1 1*1-hour + S2 3*1-hour)
Guided Independent StudyAssessment preparation and completion164:0064:00N/A
Guided Independent StudyDirected research and reading150:0050:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching61:006:00PIP seminars (S1 3*1-hour + S2 3*1-hour)
Guided Independent StudyIndependent study150:0050:00N/A
Total200:00
Teaching Rationale And Relationship

Lectures/lecture material and small group teaching are used to develop students' understanding of this module.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination1802A100N/A
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MIn-class questions provided
Prob solv exercises2MIn-class/after-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.

Reading Lists

Timetable