BU3541 Applied Finance
(10 ECTS credits)
Module Content/Outline:
This module is a survey module in financial management. It will cover these and other topics:
- Bond pricing
- Types of fixed interest instruments
- Duration and convexity
- Bond portfolio management
- Equity Markets
- Derivatives Markets
- Market Indices
- Bubbles And Crashes
- Capital Budgeting
- The Dividend Decision
- Hedging
- International Finance
Lecturer(s):
Professor Brian Lucey and Professor Aleksandar Sevic
Learning Outcomes:
On successful completion of this module students should be able to:
- Define and outline the main elements of a financial statement, and model simple company statements using MS-Excel
- Compute and interpret duration and various bond values
- Apply portfolio concepts in fixed income securities’ management
- Compute and interpret the main estimators of central tendency and dispersion
- Compute and interpret the main regression (simple linear) and correlation parameters
- Find journal and other material on the library local page using the online databases
- Apply business, fixed income securities’ management, financial statement and investment logic to address issues of this module
- Evaluate the decision to merge or acquire a company
- Calculate the cost of capital and the component parts of same
- Propose and evaluate alterative capital structures for a company
Lectures & Tutorials/Contact hours:
- 2 Lectures per week
- 1 Tutorial per week
- Recommended Texts/Key Reading:
William L. Megginson, Scott B. Smart & Brian Lucey (2008) Introduction to Corporate Finance (with Thomson ONE – Business School Edition, Smart Finance Access Card, and Solutions to Concepts Review Questions/Self Test Problems). 1st edn.
Frank J. Fabozzi (2010), Bond Markets, Analysis and Strategies, 7th Edition, Pearson Prentice Hall, Upper Saddle River, New Jersey, ISBN: 978-0-13-609974-1.
Assessment:
Group/individual assignments; essays - 50%
Dates for submission:
To be advised - see detailed Module Outline at start of year
Penalties for late submission:
Submission deadlines are not negotiable. 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 x 3-hour examination - 50%