Theory of Financial Management


Dr Ping Wang

Module description:

This module aims to provide a sound knowledge in the analytical tools for financial management.  It therefore focuses on the theory relating to investment and financing decisions. Practical issues are also considered.

Learning outcomes:

Upon successful completion of this module, students should be able to:

  • Evaluate shareholders’ wealth maximisation as the financial objective of the firm; discuss the key issues in the theory of financial management;
  • Apply net present value model to valuing securities;
  • Analyse the models which tie down the relationship between the returns on a security and its risk;
  • Understand the efficient capital markets hypothesis and its implications to financial managers
  • Discuss the theories on the relevance of dividends and capital structure