Course Information Undergraduate prospectus

Managing Business Finance

Course summary

Course code: FINA1095
Level: 5
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Helen Evans

Specification

Aims

This is an introductory business finance course intended for students who are not on the accounting and finance programme but require some knowledge of the financial aspects of business management. Students will be introduced to financial concepts and theories applied to finance-related issues encountered by firms in real-life situations focusing upon the role of the Financial Manager and the theory and skills required to make sound investment and financing decisions. The course deals with the theory and techniques of financial decision-making in a corporate context. Students will study financial concepts and theories applied to finance-related issues encountered by firms in real-life situations. Students will gain an understanding of why maximising shareholders wealth is regarded as a primary financial objective of a firm. In addition, students will develop their comprehension of the following key financial decisions - investment, financing, dividends and risk management - as paramount to creating wealth. The course will, additionally, focus upon a specific topical financial issue, for example, a recent liquidation or a macroeconomic event which has impacted upon business finance, students will be expected to study this topic in depth and deliver an extended essay.

Learning outcomes

1 Critically evaluate the principles of financial decision-making in a firm.
2 Explain the working of the economic and financial systems, and the role they play in providing a framework for financial decision making.
3 Select and use appropriate techniques of financial decision-making in the areas of investment, financing, dividends and risk management.
4 Demonstrate the problem-solving, decision making and report writing skills required by modern professionals in finance.

Indicative content

Financial objectives / value creation
Basic discounted cash flow techniques
Capital markets and efficiency
Financing decisions (Equity & Debt)
Weighted Average Cost of Capital – WACC
Capital structure
Dividend policy
Portfolio theory and Capital Asset Pricing model
Risk management
Working capital management
Business valuation

Teaching and learning activity

The course will be delivered to students through weekly lectures, in which students are introduced to a key area of finance, and seminars in which students should develop a critical understanding of the key ideas, the ability and to apply them through practical problem-solving. The seminars will be organised around questions available beforehand (at least a week earlier).

It is important that students endeavour to enhance their learning by reading the designated text and endeavouring to answer tutorial questions, before each seminar. Working consistently in this way will enhance students’ prospects of success.

Assessment

Coursework - 40% weighting, 40% pass mark, learning outcomes 1-4. 2500 word report.

Exam - 60% weighting, 40% pass mark, learning outcomes 1-4. Closed book exam, 3 hours.