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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

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


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

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion160:0060:00N/A
Scheduled Learning And Teaching ActivitiesLecture12:002:00PIP lecture for S1 to cover the fundamental maths for Economics
Scheduled Learning And Teaching ActivitiesLecture11:001:00PIP revision lecture for the S1 content
Scheduled Learning And Teaching ActivitiesLecture172:0034:00PIP lectures (S1 8*2-hour + S2 9*2-hour)
Guided Independent StudyDirected research and reading148:0048:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching61:006:00PIP seminars (S1 3*1-hour + S2 3*1-hour)
Scheduled Learning And Teaching ActivitiesDrop-in/surgery11:001:00PIP drop-in session for the S2 content
Guided Independent StudyIndependent study148:0048:00N/A
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.

Assessment Methods

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

Description Length Semester When Set Percentage Comment
Written Examination1802A100N/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 exercises1MIn-class questions provided
Prob solv exercises2MIn-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