BU2550 Introduction to Finance
(5 ECTS credits)
Module Content/Outline:
This module introduces fundamental concepts and techniques of modern finance. It starts with reviewing the nature and role of financial markets, institutions and securities. The module proceeds with the presentation of the key tools used by financial managers and investors in analysis and decision making. The theoretical models and assumptions underlying the development of modern financial techniques will also be examined. On completion of the module students should be able to understand the principles underlying the working of most financial markets, to carefully evaluate investment opportunities and understand associated risks.
Lecturer(s):
Professor Aleksandar Sevic
Learning Outcomes:
On successful completion of this module students should be able to:
- Provide basic answers to the three main questions of corporate finance; how should firms finance themselves (debt versus equity), how should they create value for investors (dividends versus capital gains) and how should they determine what capital projects to undertake
- Evaluate the relationships in theory and practice of risk versus reward
- Examine the patterns of stock and fixed-income security issuance and explain usage in companies
- Compare various financial instruments
- Place the credit and financial crisis into the corporate sector.
Lectures & Tutorials/Contact hours:
- 2 lectures per week
- 1 tutorial per week
Recommended Texts/Key Reading:
Hillier D., Clacher I., Ross S., Westerfield R., and Jordon B (2011) Fundamentals of Corporate Finance, European Edition, McGraw-Hill Education: Berkshire, ISBN 978-0-07-712525-7 or ISBN 978-0-07-713136-4
Assessment:
End of year examination: 65%
Assessed module work: 35%
Dates for submission:
Group Assignment - To be advised - see detailed Module Outline at start of year
Penalties for late submission:
10% per diem penalty is applied and 0 marks after 3 days. Students unable to submit a term assignment for medical reasons must produce a medical certificate to the School of Business Studies office within three working days of the missed submission date. Certificates received after that time will not be accepted.
Examination:
1.5 hr examination.
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