Finance II

Module Code

FINU9F4

Semester                           

Spring

Prerequisites                   

FINU9F3 or FINU9CF

SCQF Level

9

Credit value

20

Module Co-ordinator   

Dr Isaac Tabner

Lecturers                            

Dr Isaac Tabner, Dr Dimos Kambouroudis

Assessment      

5% Module Participation, 35% Class test, 60% Examination

Module introduction, aims and objectives

This module aims to provide students with an introduction to the basic skills and concepts required for the study of finance and for their application to financial management. Within this participants will be able to evaluate a firm’s corporate financing decisions and gain an understanding of how finance is raised through the capital markets. 

Learning outcomes and skills developed

  • Describe the assumptions and implications of the Efficient Markets Hypothesis
  • Measure a company’s cost of capital
  • Explain the relationship between gearing and corporate valuation
  • Describe the basic and revised Modigliani-Miller Hypotheses
  • Identify the factors which determine the capital structure of companies
  • Explain the impact of dividend policy on corporate valuation
  • Describe the importance of dividends to corporate managers
  • Explain why firms pay dividend
  • Identify the process of short-term financing and implications
  • Calculate operating and cash flow cycles
  • Apply analytical models to identify appropriate cash balances
  • Describe the optimal credit policy of a firm
  • Evaluate the relative merits of factoring, and invoice discounting
  • Describe the motivations for mergers and, the methods of financing
  • Calculate the financial implications of mergers
  • Describe the defense tactics employed by target companies.

Transferable Skills

  • Besides subject specific understanding, students should also develop the following transferable and cognitive skills:
  • Communication skills: Delivery of coherent and logical written and oral arguments
  • Self-management: Effective time management
  • Working under pressure
  • Interpersonal skills: Effective listening
  • Adaptability
  • Cognitive skills: Logical thinking and organising of data
  • Problem solving

Introductory Reading

The following textbook is required reading for the course:

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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