Content, progress and pedagogy of the module

This fundamental module in finance aims to provide the student with an understanding of the role of finance in business; the nature of available financial instruments and determinants of the prices of marketable securities; investment appraisal decisions, risk management methods, capital structure and dividend policy. All of these topics are studied in the context of effective financial management, corporate governance and business ethics.

During the module the student will gain a further understanding of long-term financial strategies, basic valuation principles, basics of company valuation, effective investment decisions, bond pricing, cost of capital and capital asset pricing, corporate governance and ethics and basics of financial risk management, among others. Finance theories, tools and techniques covered in the course can be utilized in any management decision-making process in any business sector.

This module will provide an introduction to the theory and practice of finance and so provide a foundation for a more in-depth study of different aspects of finance in the MSc programme.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• and understands the basic milestones of finance and major concepts of investment and finance.
•  the characteristics of the financial resources used by corporations and be able to evaluate their cost.
• the impact of financial structure on firm value and on bankruptcy risk, and the main issues of dividend policy and investment under uncertainty including foundations of risk measurement, systematic risk of investment projects.

Skills

The objective is that the student after the module possesses the necessary skills in:

• identifying and financially appraising projects and investment opportunities as well as sources of funding for the projects, investments and businesses activities; utilisation of financial derivatives for hedging.
• understanding the debt markets and instruments and the risks associated with such investments; be able to value various types of debt securities and their financial risks.
• identifying issues usually addressed by corporate governance structures, understand recent scandals and abuses and the regulatory reaction, identify the other drivers of corporate governance, such as capital markets, shareholders and rating agencies.

Competences

The objective is that the student after the module possesses the necessary competences in:

• using argument and evidence; demonstrating numerical/quantitative skills; develop a framework and provide a set of analytical tools for finance based on finance theories and the best industry practices; evaluate the business decisions making implications of financial management.
• appreciating the merits and demerits of, as well as alternatives to, various analytical frameworks and techniques used for financial and risk management in business.
• using the major financial theories as a framework for real world business analysis.

Type of instruction

For information see §17.

Exam

Exams