Semester 2 

Unit(s) of Assessment 

Weighting Towards Module Mark (%) 

Two hours online midterm test (multiple choice question) 

40%

Two hours final examination (short questions & closed book)

60%

Qualifying Condition(s) 
Successful completion of Accounting I at level HE1. 

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 acting in the interest of stakeholders. 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 strategic view is taken of the sources and deployment of finance in a business. It covers the fundamental principles of corporate finance and investment. 

Accounting I (HE1) 

This module aims to give the student an understanding of the principles governing financial management of a business. It will equip the student as a manager with the techniques for evaluating the financial needs of a business, identifying possible sources of 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 understanding of the relevant issues and some familiarity with the relevant literature and techniques. 

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 investments 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. 

·              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 & Acquisitions 

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 one two-hour lecture incorporating class-room participation for better understanding. 
·              Fortnightly tutorial sessions for solving problems to understand the contents covered in lectures. The tutorials cover worked examples which are an integral part of the module. Tutors will provide the necessary support during these sessions for deeper understanding using  multple choice questions (MCQ), short, and long problem solutions.
·              ULearn discussion forums to address any issues related to the contant, 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. 
·              Weekly office hours provided by lecturers 
·              Support of lecture material by directed reading in selected textbooks and journal articles. 
Assessment Strategy: 

Essential Reading 
Pike, R. and Neale B. (2009) Corporate Finance and Investment: Decisions & Strategies.  6^th edn.  FT Prentice Hall. 
Recommended Reading 
Keown, A. et al. (2006) Foundation of Finance.  5^th edn.  Pearson. 
Peirson, G., Brown, R., Easton , S., Howard, P. and Pinder, S. (2006) Business Finance.  9^th edn.  McGraw-Hill Irwin. 
Ryan, B. (2007) Corporate Finance & Valuation.  Thomson Learning EMEA. 
Van Horne, J. and Wachowicz Jr., J. (2005) Fundamentals of Financial Management. 12^th edn.  FT Prentice Hall. 
Watson, D. and Head, A. (2004) Corporate Finance: Principles & Practice.  3^rd edn.  FT Prentice Hall. 
Background Reading 
Atrill, P. (2006) Financial Management for decision makers.  4^th edn.  FT Prentice Hall.
McLaney, E. (2006) Business Finance: Theory & Practice.  7^th edn.  FT Prantice Hall.