The module introduces the learner to financial policy and management in a corporate setting. Corporate finance combines aspects of economic theory, statistical theory, law and accounting. It provides the student with an appreciation of how company finances enterprise and an understanding of the financial process in organisations.
Corporate Ownership and Control The roles, responsibilities and relationship of shareholders, directors and management; agency theory; corporate governance; corporate social responsibility.
Financial Management: Objectives The nature, purpose and scope of financial management; significance of cash flow versus accounting profits; the nature, scope and form of financial objectives of different types of organisations including not-for-profits organisations; the relationship of financial objectives to corporate strategy.
Financial Management: Framework Risk and reward; creating shareholder wealth; making wealth creating decisions; effective management of financial resources; the nature and function of the capital markets including banks and other financial intermediaries; the stock exchange; the Efficient Markets Hypothesis and its relevance to decision-making and to financial management practice; providing returns to shareholders.
Investment appraisal Strengths, weaknesses and application of Net Present Value, Payback, Discounted Payback, Internal Rate of Return, Modified Internal Rate of Return; dealing with uncertainty, inflation and taxation.
Sources of Finance Financing relationship between short term and long-term finance in the financing of non-current assets and current assets; theory of capital structure; gearing.
Short Term Sources of Finance Strengths, weaknesses and application of a variety of short-term sources of finance: overdrafts, factoring, hire purchase, leasing, loans.
Long Term Sources of Finance An understanding of bonds, ordinary shares and preference shares; calculation of value of each type of finance.
Managing of Working Capital Controlling techniques for inventories, receivables and payables; working capital cycle; cash management and cash cycle.
The module will incorporate a range of teaching and learning methods including lectures, class discussion and e-learning. The learning environment will be practical and integrative, using the theory to develop solutions to real world problems.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |