BMM5412 - Financial Management

Objectives:

On successful completion of the module, students will be able to:
Formulate appropriate, measurable financial objectives and review financial performance against targets, using appropriate ratios to assess the performance of a company and to identify potential corporate financial failure.
Appraise the management of working capital in a company and maximisation of returns to shareholders, including an explanation and evaluation of company dividend policy.
Operate and evaluate investment appraisal techniques, using appropriate techniques to identify the optimal investment with and without capital rationing.
Critically evaluate alternative sources of finance for operations and development and calculate an appropriate cost of capital for an organisation to use with discounted cash flow techniques.
Investigate the 'finance function' in corporate management and governance, signposting areas of weakness in financial management, monitoring or control and formulating strategies for remediation.

Content:

This module introduces students to corporate governance and mechanisms for financial management and review, as well as corporate financial objectives - formation, benchmarking and performance. Students will study ratio analysis, corporate financial performance measurement and failure, viability assessment, reasons for company failure and corporate distress, investment appraisal and capital rationing techniques, payback, ARR, NPV, IRR and PI, as well as the cost of capital, DVM, CAPM, debt, taxation and WACC.

Students will also be introduced to optimal capital structures, traditional and modern views, asset and company valuation techniques, new equity, offer of sale, rights, tender and bonus issues, new debt, bank loans, debentures, bonds and convertible loan stock. The module will also focus on UK and global banking system, the role of a central bank, investment banks and clearing banks, and discuss sources of finance, venture capital, grants, debtor factoring, invoice discounting and working capital management.

Learning and Teaching Information:

The module will be delivered via a series of weekly 3-hour teaching blocks, comprising whole-group interactive lecture and seminar covering fundamental theories and applications. Lectures and seminars will be supported by in-depth applied workshops.

Guided independent learning and extension activities will be set for each session and published in advance, with key topic details, on the VLE and in the module handbook. Questions/exercises will be set during the lectures immediately prior to the workshop for students to complete in small groups in preparation for workshop activity.

Students will be provided with, and/or directed to, relevant reading and additional questions/exercises to support their progress through the module material. Extensive use will be made of student led research and dissemination of results to support and enhance formal taught input.

Lectures/Seminars
Contact hours: 30
Intended Group size: Cohort

Workshops/Tutorials
Contact hours: 10
Intended Group size: Cohort or variable sized groups

Guided independent study
Hours: 160

Further details relating to assessment
Written examination: Accounting and finance module are assessed by closed book examinations to meet the requirements of ACCA as accrediting external professional body. Exams consist of questions based on a number of 'real life' case studies and are designed to enable candidates to demonstrate knowledge, understanding and skills related to module content, as well as analytical and evaluative skills required for professional practice.

Assessment:

001 Exam; 3 hours; end of semester 1 100%

Fact File

Module Coordinator - Andrew Gilliland
Level - 5
Credit Value - 20
Pre-Requisites - NONE
Semester(s) Offered - 5S1

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