Lecturer: Jane Binner
Introduction and Aims
This module is a first course in financial management for MBA students with modest exposure to the subject. The course aims to provide an understanding and working knowledge of the basic theories and techniques of finance to enable the student to participate in strategic management exercises requiring financial knowledge.
In addition the course will provide the background necessary to undertake some of the specialised finance courses available as options in the Spring/Summer Terms. The course will cover topics related to the nature of financial management, investment appraisal, financing of companies including valuation of bonds and equities, Efficient Market Hypothesis, relevance of cost of capital in selecting a capital structure, and dividend policy decisions.
Objectives and Learning Outcomes
By the end of the course all students should be able to:
demonstrate comprehensive knowledge and understanding of the fundamental principles of finance;
implement complex project appraisal techniques for investment decisions;
critically analyse the importance of financial theories in understanding why corporations prefer to use equity or debt capital and how these decisions affect the value of the firm;
demonstrate a critical understanding of the strategic importance of capital structure and dividend decisions.
Group assignment - 3,000 words (40%)
2 hour examination (60%).