Financial Management 2BUS0197 Introduction to Module

Module Pre- and Co-requisites Prohibited: 3BUS0210 Business Finance, 2BUS0205 Principles of Corporate Finance 1, 2BUS0255 Principles of Corporate Finance 2 Co-requisites: None Pre-requisites: None 2

Module Aims Enable students to gain an understanding of: The main theory and practice of the financing of companies The allocation and management of financial resources within a company The rewarding of the providers of a company's finance 3

Learning Outcomes Successful students will typically have a knowledge and understanding of: 1. The sources of finance to a company and the reward of the providers of that finance 2. The role of mergers and acquisitions, including company valuations 3. The sources of and evaluation of business risk 4

Skills and Attributes Successful students will typically be able to: 1. Evaluate and apply appropriate techniques for choosing between alternative sources of funding 2. Evaluate and apply appropriate methods for making long- and short-term asset allocation decisions 3. Critically appraise the role of mergers and acquisitions in achieving the objective of a company 4. Evaluate different methods of incorporating risk into financial decision-making models 5

Overview of Module Second-year undergraduate module Intensive module Fast moving module Theory and practice 6

Topics to be Covered Introduction to financial management Investment appraisal Capital markets, market efficiency and financial performance assessment Short- and long-term sources of finance Portfolio theory and the CAPM 7

Topics to be Covered Cost of capital and returns to providers of finance Capital structure Dividend policy Mergers and acquisition 8

Lecture and Tutorial Materials Detailed schedule of weekly activities on p.6 of the Module Guide You can find the Module Guide in the ‘Module Information’ section of the module website 9

Textbook Watson D. and Head A., (2009), Corporate Finance Principles and Practice, 5th edition, FT Prentice Hall ISBN

Organisation of the Module University expects 150 hours of student work for each module 40 hours of class contact Other 110 hours:  Guided study  Self-managed study  Preparation of assignments  Preparation for examination  More than 9 hours p.w. for 12 weeks 11

Assessment 40% Coursework 60% Examination Must pass both elements of coursework Assessment based on knowledge and understanding – not memory 12

Coursework The coursework will be handed on tutorial week #12 13

6 Steps Towards Success Attend all lectures and seminars Read relevant textbook chapters and additional readings before the lecture/seminar Study on a weekly basis Demonstrate critical thinking Participate in discussions, don’t be shy Ask for further explanations and help 14

Summary Organise yourself and have fun! 15