Module

Finance for Managers

Module description

Summary:

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

BEA3008 introduces students to corporate finance theory and to the key financial decisions/problems faced by financial managers and corporate decision makers (mainly, investment, financing and dividend decisions, together with the management of risk). In addition, the module provides students with opportunities to apply the theory to these problems 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.

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:2021/2
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 1:

11

Module aims

BEA3008 aims to introduce students to the main concepts of corporate finance theory and their implication for corporate financial decision-making process. In particular, this module provides a thorough examination of the key aspects in the financial decision-making process in a corporation, including project appraisal, source of finance, cost of capital, capital structure, dividend policy, working capital and risk management.

ILO: Module-specific skills

  • 1. describe, illustrate and compare alternative capital project appraisal techniques;
  • 2. apply relevant models for working capital management;
  • 3. explain the risk-return paradigm for investment analysis and portfolio theory;
  • 4. illustrate the capital market line and the capital asset pricing model;
  • 5. explain the use of derivatives to manage financial risks; calculate the value of options;
  • 6. describe the long-term source of finance; calculate the cost of capital;
  • 7. explain the capital structure debate; apply relevant models to solve problems in capital structure;
  • 8. explain the efficient market hypothesis and factors that influence a firm’s dividend policy;

ILO: Discipline-specific skills

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

ILO: Personal and key skills

  • 12. demonstrate written communication skills;
  • 13. work independently and develop 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 tutorial hrs preparation by student/ 1 hr in-class discussion 1-13Suggested 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 hours1-13Suggested 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%)In class test (20%) [1 hour]1-7August/September Reassessment Period
Final exam (80%) Examination (80%) [2 hours] 1-13August/September Reassessment Period

Syllabus plan

  • Firm Objectives and time value of money
  • Capital investment decisions
  • Working capital management
  • Portfolio theory I: Markowitz Frontier
  • Portfolio theory II: CML and CAPM
  • Derivatives and risk management: option pricing
  • Source of finance and cost of capital
  • Capital structure
  • Dividend policy & Market Efficiency
  • 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 - Web based and electronic resources

https://vle.exeter.ac.uk/course/view.php?id=10021 

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

03/02/2021