Module

Finance for Managers

Module description

Summary:

Note: cannot be taken with BEA2018 Corporate Finance, BEA3018 Advanced Corporate Finance or BEE3059 Asset Pricing.


This module aims to give students a clear and practical introduction to the major themes of corporate finance. It includes a thorough examination of the main techniques of investment appraisal and also discusses cost of capital, capital structure, source of finance and dividend policy. This module will help students to gain an understanding of theoretical concepts in corporate finance, make students critically aware of the key financial decisions taken by firms, and provide students with structured opportunities to practise using the key tools and techniques of corporate finance.

Additional Information:

Internationalisation
The content of this module takes an international perspective, particularly when considering the financial market, and the cross-cultural activity involved.

External Engagement
This module content meets the standards and is accredited by major accreditation bodies, including the ACCI, ICCW and ICAS.

Employability
Students acquire knowledge in this module, including a solid understanding of basic financial theory, which is highly relevant to jobs related to finance and accountancy. This module also offers an opportunity to develop their numeracy and logical thinking skills.

Sustainability
All of the resources for this course are available on the ELE (Exeter Learning Environment).

Full module specification

Module title:Finance for Managers
Module code:BEA3008
Module level:3
Academic year:2020/1
Module lecturers:
  • Mr Aurel Kucani - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEA2010 Managerial Accounting

Co-requisites:

Cannot be taken BEA2018, BEA3018 or BEE3059

Duration of module: Duration (weeks) - term 2:

11

Module aims

This module is designed to introduce students to the basic concepts of corporate finance theory and their implication for corporate financial decision making process. Students will be provided with a foundation in financial theory and practice, and learn to analyse the key aspects in corporate financial management, including project appraisal, risk and return, cost of capital, source of finance, capital structure and risk management.

ILO: Module-specific skills

  • 1. describe, illustrate, compare and contrast alternative capital project appraisal techniques;
  • 2. explain the risk-return paradigm for investment analysis and portfolio theory;
  • 3. illustrate the capital asset pricing model and calculate the cost of capital;
  • 4. describe and explain the Efficient Market Hypothesis;
  • 5. describe source of finance, explain the capital structure debate and apply relevant models to solve problems in capital structure and options for reconstruction;
  • 6. calculate the value of options and use derivatives to manage financial risks;
  • 7. explain and solve problems in international financial management.

ILO: Discipline-specific skills

  • 8. interpret financial data in the light of established theories;
  • 9. apply and criticise finance models in a 'real world' context;
  • 10. develop theoretical arguments based on analytical reasoning.

ILO: Personal and key skills

  • 11. demonstrate written communication skills;
  • 12. work independently, including time management and developing effective and efficient self-study techniques.

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
441060

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity22Lectures
Scheduled Learning and Teaching Activity11Tutorials
Scheduled Learning and Teaching Activity11Help Classes
Guided Independent Study106Reading, preparation for classes and assessments

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Assigned work for each tutorial3 hrs preparation by student/ 1 hr in-class discussion1-12Suggested Solutions

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
In-class test201 hour1-7Suggested solutions; students who failed to pass will be invited for dedicated help sessions
Final Exam802 hours1-12Suggested solutions

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
In class test (20%) & Exam (80%)Examination (2 hours) 100%1-12August/September Reassessment Period

Syllabus plan

  • Time value of money and capital investment decisions
  • Working capital management
  • Portfolio theory I
  • Portfolio theory II: CAPM and APT
  • Derivatives and risk management: option pricing
  • Efficient Market Hypothesis
  • Source of finance and cost of capital
  • Capital structure
  • Dividend policy
  • Review Session

Indicative learning resources - Basic reading

Basic reading:
Lumby, S., & Jones, C. (2019). Corporate finance: Theory and practice (10th ed.). Andover: Cengage Learning.

For wider reading, there are a large number of texts upon the subject areas of this module. Titles such as ‘Financial Management’, ‘Finance’, ‘Corporate Finance’, ‘Investments’, ‘Investment Analysis’ and similar may be found in the library and through any good book seller. Having the most up-to-date edition of such books is rarely important.

Module has an active ELE page?

Yes

Indicative learning resources - Other resources

Other materials/sources which you are expected to access/use will be apprised to you during the module.

Origin date

01/09/08

Last revision date

13/08/2020