Finance I

Module Code

FINU9F3

Semester

Autumn

Prerequisites

ACCU9A1 or ECNU111 or ACCU9M1

SCQF Level

8

Credit value

20

Module Co-ordinator

Dr Dimos Kambouroudis

Lecturers

Dr Dimos Kambouroudis, Dr Boram Lee, Dr Konstantinos Gavriilidis

Assessment

25% Class Test, 75% Examination

Module introduction, aims and objectives

The course provides an introduction to the theory and practice of finance. In particular, it provides an understanding of the basic concepts underlying two major areas of business finance: the financing decision and the investment decision.

Learning outcomes and skills developed

  • Understand the scope of finance and financial management
  • Understand and apply the concept of the time value of money
  • Apply discounting techniques to determine the value of financial securities
  • Appraise projects using NPV, IRR, PI, payback, discounted payback and ARR
  • Explain the relative merits of alternative capital investment appraisal methods
  • Identify relevant cash flows in capital investment appraisal
  • Identify the impact of taxation and inflation on capital investment appraisal decisions
  • Understand and apply methods for valuing the two key financial securities: stocks and bonds
  • Describe the key features of the UK’s equity and debt markets and its financial and banking system
  • Understand the role of banks and institutional investors in the financing of UK companies
  • Explain the functions of stock exchanges and the importance of an efficiently operated stock exchange
  • Describe alternative share trading systems
  • Be aware of the stock markets available to UK firms and investors
  • Describe the alternative methods of raising new equity capital
  • Understand the financial terminology used in the financial press
  • Understand and describe the nature of risk and return in financial markets
  • Understand how investment risk may be measured
  • Explain the effect of portfolio diversification on investment risk
  • Understand and apply Modern Portfolio Theory (MPT)
  • Understand and apply the Capital Asset Pricing Model (CAPM)

Introductory reading

The core text book for this module is:

Hillier, D., Ross, S. A., Westerfield, R. W., Jaffe, J., and Jordan, B. D. 2013. Corporate Finance, Second European Edition, McGraw-Hill.


This module information is representative of what is included in the module in a given year. Details of actual reading, lectures and coursework may vary year to year and will be available at the beginning of the semester.

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