The module introduces the learner to financial policy and management in an enterprise. It provides the student with a broad understanding of the nature, role and methodologies of financial management in an organisation to help the firm achieve its financial objectives
| Corporate Ownership and Control The roles, responsibilities and relationship of shareholders, directors and management; agency theory; corporate governance; corporate social responsibility.
Financial Management: Objectives The nature, purpose and scope of financial management; significance of cash-flow versus accounting profits; the nature, scope and form of financial objectives of different types of organisations including not-for-profits organisations; the relationship of financial objectives to corporate strategy.
Financial Management: Framework Risk and reward; creating shareholder wealth; making wealth creating decisions; effective management of financial resources; the nature and function of the capital markets including banks and other financial intermediaries; the stock exchange; the Efficient Markets Hypothesis and its relevance to decision-making and to financial management practice; providing returns to shareholders.
Leverage Break even analysis. Leverage analysis, operating leverage, financial leverage and combined leverage.
Investment appraisal Strengths, weaknesses and application of Net Present Value, Payback, Discounted Payback, Internal Rate of Return, Modified Internal Rate of Return; dealing with uncertainty, inflation and taxation.
Sources of Finance Financing relationship between short term and long term finance in the financing of non-current assets and current assets; theory of capital structure; gearing.
Short Term Sources of Finance Strengths, weaknesses and application of a variety of short term sources of finance: overdrafts, factoring, hire purchase, leasing, loans.
Long Term Sources of Finance An understanding of bonds, ordinary shares and preference shares; calculation of value of each type of finance.
Cost of Capital Cost of debt finance and equity finance. Weighted average cost of capital. |
The module will incorporate a range of teaching and learning methods including lectures, class discussion and e-learning. The learning environment will be practical and integrative, using the theory to develop solutions to real world problems
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |