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Unit information: Financial Management in 2020/21

Unit name Financial Management
Unit code EFIMM0115
Credit points 20
Level of study M/7
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Dr. Zheng
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description

This unit aims to give students a thorough grounding in the fundamentals of Financial Management. The unit will serve as the foundation for second term optional units in accounting and finance. The following key areas in accounting will be covered: understanding and interpretation of financial statement via ratio analysis, costing and budgeting concepts. The following areas of finance will be covered: corporate investment appraisal, capital structure optimization and financing decisions, portfolio diversification, asset pricing models and market efficiency.

Intended learning outcomes

On successful completion of this unit a student will be able to:

  1. Analyse and interpret company accounts using ratio anaylsis, including key performance indicators such as price earnings ratio and measures of return on capital and gearing;
  2. Demonstrate understanding of cost concepts and techniques for internal control and short run decision-making;
  3. Apply principles of investment appraisal;
  4. Discuss sources of long-term finance and the role of corporate taxes in the optimal capital structure decision;
  5. Demonstrate understanding of the principles of portfolio theory;
  6. Solve financial problems in the context of uncertainty, such as calculating the cost of equity using the Capital Asset Pricing Model and the weighted average cost of capital in the presence of debt;
  7. Demonstrate understanding of issues of market efficiency.
  8. Discuss corporate decisions by incorporating currency risks in an international environment.

Teaching details

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Details

This unit will be assessed by 100% individual coursework

Reading and References

  1. Atrill and McLaney, 2016, "Accounting and Finance: An Introduction", 8th edition, published by Pearson.
  2. Pike and Neale, 2012, “Corporate Finance and Investment - Decisions and Strategies”, 7th edition, published by Pearson.
  3. Students are also referred to journal articles (e.g. Financial Management, Journal of Finance, Journal of Accounting Research) as directed in lecture and tutorial materials.

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