Finance for Managers

MBA module

Lecturer: Professor Ranko Jelic

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 will be expected to:

  • Have developed an understanding of the basic principles of finance
  • Implement project appraisal techniques for investment decisions
  • Demonstrate that they are able to calculate cost of capital using bond and share valuation models
  • Understand implications of Efficient Market Hypothesis
  • Understand strategic importance of dividend and capital structure decisions
  • Understand motives and other relevant issues related to Mergers, Acquisitions and Corporate Restructuring

Assessment

This module is assessed by one group assignment (50%) and a two hour examination (50%).