This module introduces the core concepts and key topic areas of corporate finance which is concerned with the investment, financing, and dividend decisions made within the financial context of the firm. Students will develop knowledge and understanding of the role and objectives of financial management within the firm, and learn to apply key financial techniques in the areas of financial analysis, working capital management, sources of finance and portfolio investment strategies.
Introduction to Finance
Identify & explain the basic concepts of finance, the time value of money, investment, & return. Introduction to financial statements.
Financial Analysis and Forecasting
Using ratio and key performance indicators to evaluate the financial and operational performance of the firm from an investor or outsider perspective. Importance of accurate forecasting. Forecasting cash-flows.
Capital Markets
Explore the financial markets, Debt & Equity, primary and secondary. Discuss the nature of Common Stock and determinants of valuation. Identify the characteristics and valuation methodologies for the various types of Fixed Income securities and ordinary shares.
Investment and Project Appraisal
Explore the nature of Capital Investment and the requirement for advance analysis and project appraisal. Discuss the main types of project appraisal techniques and enhance understanding through technical exercises to gain and understanding of and advantages and shortcomings of each.
Sources of Finance
Explore the various sources of finance. Equity as a long-term source of finance. Debt as a long-term source of finance.
Dividend Policy
The importance of dividend policy. Impact of the dividend policy on the investment and financing decisions.
Capital Structure
Determinants and Estimation Weighted Average Cost of Capital. The importance of capital structure to financial health of the firm and its impact on risk and financial distress.
Introduction to Portfolio Theory
The measurement of risk. Concept of diversification. An example of simple two-asset portfolio: calculation of portfolio risk and return.
Financial Risk Management
Evaluating Interest and exchange rate risk. Introduction to Treasury operations and hedging strategies.
Formal lectures will form the core of the learning strategy. To complement formal lectures, problem solving exercises will be undertaken to ensure experience of the technical aspects of the course and the use of tools (including spreadsheets) in a lab environment for more productive modelling and financial IT toolkit skills development.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |