Autumn

The assessment strategy is designed to involve both an individual coursework assignment of a mainly technical problem-solving nature through case study and an open-book examination. The strategy is as follows: to use the coursework to develop the students' analytical and problem-solving skills, and to make the examination as far as possible a test of understanding rather than of memory. 

Unit(s) of Assessment	Weighting Towards Module Mark (%)
Individual coursework assignment	40
Three-hour open-book examination	60

Pass previous Finance and Accounting modules

This module is to provide a substantial course in Financial Management at a level appropriate to the final year of an undergraduate degree in generic management, business, and financial studies.

On successful completion of this module the students will be able to:

• Apply the learning outcomes of the Level 2 module in Business Finance, extended and deepened.
• Equipped with the valuation techniques and be able to apply those techniques to the valuation of bonds and stocks, and investment project evaluation.
• Understand and apply the theory of capital markets, including risk-return relationships, capital asset pricing, and portfolio management.
• Understand and apply the theory of corporate financing, including capital structure decision, debt management, and dividend policy.

• The explanations must convey an adequate level of conceptual understanding, and the application of techniques is intended to test that the understanding can be successfully applied in problem solving.

To pass this module the student will demonstrate a familiarity with (Market Research, but whose attempts to organise, present and examine the material in a critical and constructive manner are only partially successful. The student displays some understanding of the relevant issues and some familiarity with the relevant literature and techniques.

• The financial environment and the world of corporate finance
• Investment risk and the principles of valuation
• Capital investment appraisal
• Capital market and the risk and return
• Portfolio theory and the market model of the risk premium
• Risk and cost of capital
• Capital structure
• Dividend policy

The teaching and learning strategy is designed to allow a student to come to grips with what is essentially a quantitative subject.

The teaching and learning methods include

• A relatively high level of contact (3 hours per week)
• Numerous practical exercises
• Coursework focused on problem solving exercises and technically demanding case studies
• Making lecture handouts available to students
• Support of lecture material by directed reading in selected textbooks

Expected purchase

Arnold, G. (2008), Corporate Financial Management (4^th Edition), Pearson.

Supporting

Ross, S.A., Westerfield, R.W. and Jaffe, J.F. (2008), Corporate Finance (8^th international edition), McGraw-Hill.

Ross, S.A., Westerfield, R.W. and Jordan, B.D. (2008), Fundamentals of Corporate Finance (8^th International Edition), McGraw-Hill

Brealey, R.A. and Myers, S.C. (2008), Principles of Corporate Finance (9^th edition), McGraw-Hill.

Gitman, L.J. (2008, Principles of Managerial Finance (12^th edition), Pearson.

Other Sources
Articles and other material from the financial pages of newspapers and academic journals, such as:

Journal of Finance
Journal of Financial Research
The Review of Financial Studies
Journal of Business Finance and Accounting
Journal of Financial Economics
Journal of Business Research

09.09.2008