Units of Assessment

Weighting Towards Module Mark (%)

 

Homework Assignments

15%

Class test – 45 minutes

25%

Closed book examination – 2 hours

60%

Qualifying Condition(s) 

·        Good numerical skills (good grasp of GCSE level mathematics)

·        Basic knowledge of any spreadsheet package e.g. MS Excel

·        Enthusiasm towards finance and investment

A weighted aggregated mark of 40% is required to pass the module.

Regardless of your role in a company, a good understanding of how corporate financial decisions impact on the value of the company is very essential. The Financial Management module focuses on the impact of financial choices on the value of the company and addresses some special topics in corporate finance. These include mergers and acquisitions, corporate governance and an introduction to derivatives and their applications in corporate finance and financial risk management.

This module builds on the concepts introduced in Business Finance (HE2) and Corporate Finance (HE2). A pass in both modules (or their equivalents) is therefore required.

The module aims to develop a deep understanding of the ideas necessary to analyse the firm’s financing decisions with regards to capital structure and payout policy.  The module also introduces financial options and its applications corporate finance and risk management.    

·              Introduction - Review of Portfolio Theory and Cost of Capital

 ·              Capital Market Efficiency and Investor Behaviour

 ·              Capital Structure Decisions

 ·              Distributions to Shareholders: Dividends and Repurchases

 ·              Introduction to Financial Options

 ·              Options Applications and Corporate Finance

 ·              Mergers and Acquisitions

 ·              Corporate Governance

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.

 ·              A 3-hour lecture will be held each week and this time will be used to introduce the lecture material as well as class discussions on exercises and case studies.

  ·              Lecture material will be supported by directed reading in selected textbooks and relevant journal articles.

  ·              Numerous practical exercises and homework assignments through MyFinanceLab

 ·              Utilizing ULearn as the main pool of resources including lecture handouts, tutorial problems, mock exercises, and discussions.

 ·              Feedback will be provided on a regular basis during lectures and on an individual or group basis during office hours. Feedback is also provided via ULearn discussion forums to address any issues related to the content, learning and teaching environment, and delivery of the module and/or specific topics.

 ·              In addition, the lecturer will be available for individual queries during weekly office hours and by e-mail.

 Assessment Strategy:

 ·              The assessment for this module is in three parts and includes a mix of summative and formative assessments.

 ·              Homework (15%): The MyFinanceLab application that accompanies the recommended textbook will be used extensively for the homework assignments. This is to encourage students to take responsibility for their own learning by providing a mechanism for students to practice numerical exercises and monitor their own progress.

 ·              The Class test (25%) and the Closed-book exam (60%) are designed to assess the student’s ability to discuss the relevant theoretical concepts and apply these to numerical problems.

Essential Reading

 Berk, J., and DeMarzo, P., (2011). Corporate Finance. 2^nd ed.  Pearson.

 Recommended Reading

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

 Megginson, W., Smart, S., and Gitman, L., (2007).  Corporate Finance. 2^nd ed. Thomson/South-Western.

 Hillier, D., Ross, , Westerfield, R.W., and Jaffe, J.F., (2010). Corporate Finance: European Edition.  McGraw-Hill.

 Hillier, D., Grinblatt, M., and Titman, S., (2008).  Financial Markets and Corporate Strategy: European Edition.  McGraw-Hill.

 Background Reading

 Appropriate journal articles:

 Journal of Finance 

•  Journal of Financial Economics

•  The Review of Financial Studies