Financial Management

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• examine the financial strategy and structure of firms.
• enhance critical analysis and adopt appropriate methods with respect to specific issues of corporate financial management and problem solving;

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• examine the financial strategy and structure of firms.
• critically evaluate the existing literature and other available sources;
• enhance your critical ability and apply various theoretical concepts to problem solving;
• strengthen your quantitative skills;

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• the rules used to make optimal investment decisions;
• short and long‐term financing, investment, corporate restructuring and valuation decisions;
• the theoretical aspects of financial management, capital structure and dividend policy;
• the organisational structures available within the economy and their relationship to the market for corporate control.
• the role and function(s) of financial managers of firms, the important features of the main types of business, the main differences between debt and equity, and the role of financial assets and markets;

• Introduction to corporate financial management including the role and purpose of financial management; corporate objectives; time value of money.
• Net Present Value and other criteria. Investment and financing decisions.
• Working capital management, including costs and benefits of holding additional inventory and cash
• Theory of capital structure, including bankruptcy and agency costs. Cost of equity and debt. Weighted average cost of capital. Effect of gearing on risk and return on equity capital, and on cost of capital and firm value.
• Long-term financing, including the mechanics of raising capital through issuing equity and debt
• Dividend policy including the dividend irrelevance argument and the signalling hypothesis.

Teaching and learning methods

Teaching methods include:

• lectures
• weekly classes
• including reading
• use of websites
• solving computational problems.

Resources & Reading list

Textbooks

Brealey, Myers and Marcus. Fundamentals of Corporate Finance.

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Repeat Information

Repeat type: Internal & External