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Financial Management

Level: 2
Credit Rating: 20
Subject Area: Finance
Module Type: Double
Semester Offered: 1 through 2
Course(s) for which module is acceptable and status in course:
  • BA (Hons) Accounting and Finance – Compulsory
  • BA (Hons) Business Studies with Finance – Compulsory
  • BA (Hons) Business Management with Finance – Compulsory
  • BSc (Hons) Mathematics with Finance – Compulsory
Pre-requisites: FA161 Financial Accounting
MA161 Management Accounting
Aims:
  • To introduce the financial environments in which financial decision making takes place and to explore the ideas and practices of finance and financial management
  • To understand the workings of the financial system and evaluate alternative sources of finance and assess investment possibilities
  • To develop the knowledge and skills expected of a finance manager in relation to the investment and financing decisions.
Learning Outcomes:

On completion of this module students should be able to:

Subject specific:

  • Demonstrate an understanding of the sources of finance available to an organization and the relationships of the organization with the capital markets and the providers of funds.
  • Identify the relationship between risk and return and how the level of risk can be affected by financing and investment decisions.
  • Demonstrate an understanding of the financial decision making processes and their applications in organisations and to appreciate their practicality, strengths and shortcomings.
  • Demonstrate competence in the analysis and selection of financial data and in its use to generate decision making information.
  • Demonstrate an understanding of risk management techniques and their application to business.
  • Demonstrate understanding of and application of the principles of business and assets valuations.

Cognitive:

  • Demonstrate numeracy skills, including the ability to manipulate financial and other numerical data and appreciate the statistical concepts at an appropriate level.
  • Demonstrate skills in the use of communications and information technology.
Content:
  • The role of financial markets and institutions
  • The Stock Market and market efficiency
  • Sources of finance – equity and debt
  • Cost of capital and gearing
  • Traditional analysis of risk
  • Portfolio theory and the capital asset pricing model
  • Dividend decision
  • Investment appraisal, to take account of inflation, taxation, differing lives, capital rationing and risk.
  • Introduction to financial derivatives and managing exchange rate risk
  • Working capital management.
Teaching & Learning Strategies:

The module will use a mix of teaching and learning processes including those detailed below.

Students will be given questions to prepare for seminars that will consolidate their understanding of the topics introduced during lectures.

Lectures: 20
Open Learning: 0
Seminars: 20
Self Study: 100
Workshops: 0
Assessment: 60
   
Total: 200
Learning Support:

Indicative reading:

Arnold, G., Corporate Financial Management, Prentice Hall
Atrill, P., Financial Management for Non-specialists, Prentice Hall
Higson, C.J., Business Finance, Butterworths
Lumby, S. & Jones, C., Corporate Finance: Theory and Practice, Thomson Learning
McLaney, E. J., Business Finance: Theory and Practice, Prentice Hall
Pike, R. & Neale, B., Corporate Finance and Investment, Prentice Hall
Watson, D. & Head, A.,  Corporate Finance: Principles and Practice, Prentice Hall.
Assessment: Coursework (30%): The coursework will be designed to assess the application of decision-making.
Examination (70%): An unseen 3 hour exam designed to test subject specific knowledge and understanding, and ability to choose and use relevant techniques to formulate appropriate responses to complex problems
Brief Description of the Module:    The module provides an appreciation of financial decision making within an organization.  It explores decisions related to the financing of an organization, the organizations long term investments and the organizations operations. 
Area Examination Board: Finance
External Examiner: Dr Javed Hussain

School home

Brighton Business School

Site where delivered: Moulsecoomb
Module Writer(s): Catherine Matthews & Jenny Robertson
Date of  First Approval May 2007
Date of Last Revision May 2007
Version Numbe 4