MBM2235 - Financial Management

Objectives:

On successful completion of the module, students will be able to:

1 recognise the uses and users of published financial statements;
2 critically evaluate the various sources of long and short-term finance available to companies.
3 analyse the role of financial management in firms and its relationship with other management areas;
4 understand the main reasons for financial distress and critically evaluate a business using a set of financial statements;
5 analyse investment proposals using a range of techniques;
6 explain and critically evaluate the theories underlying the pricing of financial securities and their relevance to investment, financing and dividend decisions;

Content:

Sources of Finance, Financial Markets, Efficient Market Hypothesis, Raising Equity Finance.
Risk & Return Relationship, The Capital Asset Pricing Model.
Uses and users of published financial statements, Interpretation of Financial Data using Ratio Analysis, Predictive Models of Corporate Failure.
Investment Appraisal Techniques; Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return. Relevant Cash Flows for Decision Making.
Dividend Policy.
Calculating the Cost of Equity & post-tax Debt to a business, Weighted Average Cost of Capital, Capital Structure Decisions.

Learning and Teaching Information:

One two-hour session per week for all students, comprising: a brief revision of previous weeks’ material; a review of student solutions to exercises previously set; introduction of new material; the setting of exercises for student completion. Additional one-to-one sessions with individual students will be scheduled on demand. Individual student exercises will be discussed / ‘marked’ both ‘in person’ and via email. Basic and extra material will be made available via a virtual learning environment (Bodington Common / Moodle)

Lecture / tutorial session
Contact hours: 20
Number of Groups: one

Assessment: