Module overview
This module provides a deep insight in some key theories and topics in Financial Management. The module looks at how firms and corporation manage financial investment and decisions in the long term and short term. The module will discuss topics ranging from how firms evaluate financial performance, decision regarding investment in capital, how firms decide in dividend policy.
Linked modules
Prerequisites: (MANG1007 or MANG1047 or MANG1019 or ECON1005 or ECON1008) and (ECON1001 or ECON1003 or ECON1009 or ECON1020 or ECON1022) or (MANG1020 and MANG1021) or (MANG1026 and MANG1028)
Aims and Objectives
Learning Outcomes
Subject Specific Intellectual and Research Skills
Having successfully completed this module you will be able to:
- critically evaluate the existing literature and other available sources;
- examine the financial strategy and structure of firms.
- 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:
- short and long‐term financing, investment, corporate restructuring and valuation decisions;
- the organisational structures available within the economy and their relationship to the market for corporate control.
- the rules used to make optimal investment decisions;
- 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;
- the theoretical aspects of financial management, capital structure and dividend policy;
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;
Syllabus
- 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.
Learning and Teaching
Teaching and learning methods
Teaching methods include:
- lectures
- weekly classes
- including reading
- use of websites
- solving computational problems.
Type | Hours |
---|---|
Tutorial | 10 |
Revision | 46 |
Wider reading or practice | 20 |
Lecture | 24 |
Completion of assessment task | 20 |
Preparation for scheduled sessions | 20 |
Follow-up work | 10 |
Total study time | 150 |
Resources & Reading list
Textbooks
Brealey, Myers and Marcus. Fundamentals of Corporate Finance.
Assessment
Formative
This is how we’ll give you feedback as you are learning. It is not a formal test or exam.
Examination In-class activitiesSummative
This is how we’ll formally assess what you have learned in this module.
Method | Percentage contribution |
---|---|
Multiple choice Test | 20% |
Examination | 80% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
Method | Percentage contribution |
---|---|
Examination | 100% |
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.
Method | Percentage contribution |
---|---|
Examination | 100% |
Repeat Information
Repeat type: Internal & External