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| Module Availability |
| Spring |
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| Assessment Pattern |
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Unit(s) of Assessment
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Weighting Towards Module Mark (%)
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Examination
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75%
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Coursework
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25%
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| Module Overview |
| This module covers fundamental concepts in finance. Following an introduction to risk, return and the time value of money it goes on to explore the characteristics and valuation of financial assets such as bonds and stocks. It then introduces issues of capital budgeting, in the context of which the role of cash flows and risk analysis will be discussed. The analysis of several concepts will be supplemented with the use of spreadsheets and/or financial calculators. |
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| Prerequisites/Co-requisites |
| None |
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| Module Aims |
| The aim of the module is to introduce a set of basic concepts and tools in finance; these can form the foundation for a deeper understanding of financial markets, derivative products and corporate finance in more specialised modules in the final year. |
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| Learning Outcomes |
| Upon completing the module students will: have a clear idea about the time value of money and be able to carry out present value and future value calculations using spreadsheet programmes and/or financial calculators; understand the basic characteristics and valuation methods of stocks and bonds; appreciate the decision-making process behind the capital budgeting decisions of a firm. |
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| Module Content |
| Risk and return; time value of money; bonds and stocks; the cost of capital; the basics of capital budgeting; cash flow estimation and risk analysis; the capital structure of the firm. |
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| Methods of Teaching/Learning |
| Weekly two-hour lectures. |
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| Selected Texts/Journals |
Blake, D. (2000), Financial Market Analysis, 2nd edition, Wiley.
Brigham E.F., and Houston J.F. (2004), Fundamentals of Financial Management, 10th edition, Thomson.
Elton E. J. and Gruber M. J. (2003), Modern Portfolio Theory and Investment Analysis, 6th edition, Wiley.
Damodaran, A. (2006) Applied Corporate Finance, 2nd edition, Wiley.
Lumby, S., and Jones, C. (2003), Corporate Finance, Theory and Practice, 6th edition, International Thomson Business. |
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| Last Updated |
| 25th June 2008 |
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