Course Information Undergraduate prospectus

Corporate Financial Management

Course summary

Course code: FINA1129
Level: 6
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Helen Evans

Specification

Aims

This course is intended for students who require an intermediate knowledge of the financial aspects of business management. Students will apply financial concepts and theories to finance-related issues encountered by firms, focusing upon the role of the Financial Manager and the theory and skills required to make sound investment and financing decisions. The key topics to be delivered include the tenets of Modern Portfolio Theory, developing from the concept of efficient markets through to the ability to identify and calculate bespoke risk adjusted weighted average cost of capital. Students will grasp the financial relevance of cost of capital within the context of business project evaluation. The course deals with the theory and techniques of financial decision-making in a corporate context. 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, to include, for example, evidence of forecasting or scenario analysis ability.

Learning outcomes

On successful completion of this course a student will be able to:
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, risk management and business project evaluation.
4 Demonstrate the problem-solving, decision making and report writing skills required by modern professionals in finance.

Indicative content

Financial objectives / value creation
Discounted cash flow techniques to include risk adjusted future estimation
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 - 50%
LO - 1-4
Numeric grading
Pass mark - 40%
3,000 word Report.

Exam - 50%
LO - 1-4
Numeric grading
Pass mark - 40%
Closed book exam, 3 hours.