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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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Two hours midterm examination (Multiple choice question and closed book)
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40
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Two hour final examination (Short questions and closed book)
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60
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| Module Overview |
| It is accepted that the prime motivator in business activity is sustainable profitability for shareholders' wealth maximization. It follows that all managers are likely to perform better towards that goal if they understand the mechanisms for achieving sustainable profit by taking care of stakeholders. That includes financial mechanisms. THis module is designed to give students the necessary basic background in finance to enable them to be effective business managers. In this module a more strategic view is taken of the sources and deployment of finance in a business. It fundamentally covers the principles of corporate finance and investment. |
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| Prerequisites/Co-requisites |
| Financial Accounting (HE1) |
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| Module Aims |
This module aims to give the student an understanding of the principles governing financial management of a business. It will equio the student as a manager with the knowledge of evaluating the financial needs of a business, identifying possible sources of that finance, determining the most effective course of action to obtain that finance, and utilizing such finance in the most attractive opportunity. It will also provide an appreciation of the role of the finance function in the commercial life of the business.
To pass this module the student will demonstrate a familiarity of business finance (corporate finance and investment management). The student should display some underdstanding of relevant issues and some familiarity with the relevant literature and techniques. |
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| Learning Outcomes |
On successful completion of this module the students will be able to:
- Appreciate the role and scope of corporate finance in the financial planning process of any firm.
- Understand the time value of money and its implication in interpreting cash flows occuring in different time horizon in accounting statements.
- Perform valuation of different assets based on the DCF method and appreciate the factors effecting such valuation.
- Evaluate potential investment opportunities with its cost and risk factors, and select suitable ones in case of multiple alternatives, budgetory constraints and capital rationing
- Identify the different sources of financing with their relative implications i.e. advantages and disadvantages.
- Understand and appreciate the theories behind use of debt financing as leverage and the optimal capital structure for any firm.
- Understand how companies determine their dividend payout policies and the signal that sends to the market.
- Understand the success and the failure of mergers and acqusitions.
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| Module Content |
- Introduction to Business Finance
- Working Capital Management
- Time Value of Money
- Asset Valuation
- Capital Investment Appraisal
- Risk and Return
- Portfolio Theory & CAPM
- Sources of Finance (Capital and Money Markets)
- Cost of Capital
- Capital Structure
- Dividend Policy
- Mergers and Acquisitions
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| Methods of Teaching/Learning |
The teaching and learning strategy is designed to allow a student to come to grips with what is essentially a subject of mixed theory and practice:
- Weekly two hour lectures incorporating class-room participation for better understanding and to train students for the examinations
- Fortnightly tutorial sessions for solving problems to understand the contents covered in lectures. Tutors will provide the necessary support during these sessions for deeper understanding using MCQ, short and long problem solutions.
- Regular consultation on a weekly basis(tutors will be available for answering questions from the students during their office hours)
- ULearn will be used for delivering forums to address any issues related to te content, learning and teaching environment and delivery of the module and/or specific topics
- ULearn will be used for delivering optional mock MCQ and short question examination, giving the participants an opportunity to get formative feedback
- Utilizing ULearn as the main pool of resources including lecture handouts, tutorial problems, mock exercise, and discussions. Besides using ULearn as the main means of communication to establish resource efficiency and communicational effectiveness.
- Support of lecture material by directed reading in selected textbooks and journal articles
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| Selected Texts/Journals |
Expected purchase:
Pike, R. and Neale B. (2009) Corporate Finance and Investment: Decisions & Strategies, 6th ed., FT Prentice Hall
Recommended:
Ryan, B. (2007) Corporate Finance & Valuation, Thomson Learning EMEA
Peirson, G. Brown, R. Easton, S. Howard, P. Pinder, S (2006) Business Finance, 9th ed., McGraw-Hill Irwin
Van Horne, J. Wachowicz Jr., J (2005) Fundamentaals of Financial Management, 12th ed., FT Prentice Hall
Watson, D and Head, A (2004) Corporate Finance: Principles & Practice, 3rd ed., FT Prentice Hall
Keown, A et al (2006) Foundation of Finance, 5th ed., Pearson
Supporting:
Berk, J and DeMarzo, P (2007) Corporate Finance, Pearson International Edition, Pearson Addison Wesley
McLaney, E (2006) Business Finance: Theory & Practice, 7th ed. FT Prenctice Hall
Atrill, P. (2006) Financial Management for decision makers, 4th ed. FT Prentice Hall |
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| Last Updated |
19.01.2009 |
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