Finance for Managers

Module title	Finance for Managers
Module code	BEA3008
Academic year	2023/4
Credits	15
Module staff	Mr Aurel Kucani (Convenor)

Duration: Term	1	2	3
Duration: Weeks	11

Number students taking module (anticipated)	300

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).

Module aims - intentions of the module

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.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

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 firms dividend policy;

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

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

On successfully completing the module you will be able to...

12. demonstrate written communication skills;
13. work independently and develop effective and efficient self-study techniques.

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

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

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
44	106	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning and Teaching Activity	22	Lectures
Scheduled Learning and Teaching Activity	11	Tutorials
Scheduled Learning and Teaching Activity	11	Help Classes
Guided Independent Study	106	Reading, preparation for classes and assessments

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Assigned work for each tutorial	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 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	1-13	Suggested solutions
	0
	0
	0
	0

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
In class test (20%)	In class test (20%) [1 hour]	1-7	August/September Reassessment Period
Final exam (80%)	Examination (80%) [2 hours]	1-13	August/September Reassessment Period

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.

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.

Key words search

Corporate Finance, Financial Management

Credit value	15
Module ECTS	7.5
Module pre-requisites	BEA2010 Managerial Accounting
Module co-requisites	Cannot be taken BEA2018, BEA3018 or BEE3059
NQF level (module)	6
Available as distance learning?	No
Origin date	01/09/08
Last revision date	03/02/2021