Finance for Managers
Module description
Summary:
Note: cannot be taken with BEE3059 Asset Pricing, BEA2018 Corporate Finance, BEA3018 Advanced Corporate Finance or BEA3001 Financial Management.
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: | 2016/7 |
| Module lecturers: |
|
| Module credit: | 15 |
| ECTS value: | 7.5 |
| Pre-requisites: | BEA2010 Managerial Accounting |
| Co-requisites: | Cannot be taken with BEE3059, BEA3018, BEA3001 or BEA2018 |
| 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. use information technology for information retrieval and numerical analysis
- 12. develop teamwork and presentation skills in debating discussion topics and producing team solutions to problems
- 13. work independently as well as in groups, 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 Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 44 | 106 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Contact Hours | 22 | Lectures |
| Contact Hours | 11 | Tutorials |
| Contact Hours | 11 | Help Classes |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Assigned work for each tutorial | 3 hrs preparation by student/ 1 hr in-class discussion | 1-13 | Suggested Solutions |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In-class multiple choice test | 20 | 1 hour | 1-7 | Suggested solutions; students who failed to pass will be invited for dedicated help sessions |
| Final Exam | 80 | 2 hours | 1-10 | Suggested solutions |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| MCQ & Exam | Examination (2 hours) 100% | 1-13 | August/ September |
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:
The module recommended purchase texts (from which a number of the self-study assignments will be drawn) are:
Hillier, D., Ross, S., Westfield, R., Jaffe, J., and Jordan, B. (2010) Corporate Finance, 1st European Edition, London: McGraw-Hill
Brealey, R.A., Myers, S.C. and Allen, F. (2008), Principles of Corporate Finance, 9th (International) Edition, London: McGraw-Hill.
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
02/09/2015