Introduction to Finance

Module description

Summary:

This module should appeal to students who wish to obtain a better understanding of financial markets. Topics covered include the role of the stock markets and the mechanics of investment, principles of investment, and the present value model of investment.

Additional Information:

Internationalisation

This is a highly practical module applicable across the globe. The tools (present value, optimal portfolio selection) that are taught in this module can be used to evaluate investment opportunities anywhere in the world.

Sustainability

Lecture notes and other resources are available on ELE (Exeter Learning Environment).

Employability

The skills students learn in this module are directly transferable to employment. Present value can be used to evaluate any type of investment (e.g., stock, bonds or new projects) while optimal portfolio selection can be applied to personal financial management or for financial advice. These skills are relevant for jobs in corporate finance, consulting companies and investment banks.

 

Full module specification

Module title:Introduction to Finance
Module code:BEE1006
Module level:1
Academic year:2016/7
Module lecturers:
  • Dr Rish Singhania - Lecturer
Module credit:15
ECTS value:

7.5

Pre-requisites:

None.

Co-requisites:

None.

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

11

Module aims

The aim of this module is to provide an understanding of the functioning of financial markets. A theoretical framework is given to understand how individuals invest in financial markets and how firms decide in which financial market to raise capital.

ILO: Module-specific skills

  • 1. demonstrate an understanding of stock and bond markets
  • 2. demonstrate a knowledge of UK financial institutions

ILO: Discipline-specific skills

  • 3. demonstrate an ability to apply economic analysis to evaluate the performance of financial markets

ILO: Personal and key skills

  • 4. demonstrate analytical and problem-solving skills

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

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
301200

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact hours30Lectures

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
ExercisesWeekly1-4Seminar discussions

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
Mid-Term301.5 hours1-4Written or oral feedback
Examination702 hours1-4Written or oral feedback

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

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Mid-Term and Exam2 hour Exam (100%)1-4August/September assessment period

Syllabus plan

This module will cover the following topics:

  • Introduction (Ch.1 of Ross)
  • Financial Markets and Institutions (Ch.1 of Ross)
  • Managing Financial Health and Performance (Ch.2 and Ch.3 of Ross) Discounted Cash Flow Valuation (Ch.4 of Ross)
  • Interest Rates and Bond Valuation (Ch.5 of Ross) Stock Valuation (Ch.6 of Ross)
  • The Analysis of Investment Projects (Ch.7 and Ch.8 of Ross) Risk and Return Lessons from Market History (Ch.10 of Ross) The Capital Asset Pricing Model (Ch.11 of Ross)
  • Risk, Cost of Capital, and Capital Budgeting (Ch.12 of Ross)

Indicative learning resources - Basic reading

Core text(recommended): 

Ross, S., Westerfield, R., Jaffe, J. and Jordan, B. (2011) Corporate Finance: Core Principles and Applications (ISBN: 9780071221160). 

ELE http://vle.exeter.ac.uk/course/view.php?id=162

Module has an active ELE page?

Yes

Origin date

01/09/1999

Last revision date

17/08/2016