The module aims to provide: a framework to allow understanding of the role of financial management in the business and of how financial management supports decision making by managers;
an understanding of the basic principles of financial management;
an understanding of the basic techniques of financial management;
an understanding of the institutional setting of financial management;
an understanding of the use of financial management information in managerial decision making;
an understanding of the links between financial management and other managerial activity.

(LO1) Students will be able to understand the role of the finance function in a business ; shareholder wealth maximisation principle; agency problem

(LO2) Students will be able to understand the role of financial statements in the planning process; calculate ratios and explain their significance; assess projected financial statements, risk and uncertainty.

(LO3) Students will be able to explain the nature, importance, key stages, methods of investment decision making, capital rationing and projects with unequal lives.

(LO4) Students will be able to identify the main sources of internal and external finance available to a business; discuss the factors to be taken into account when choosing an appropriate source of finance and explain the advantages and disadvantages to each source.

(LO5) Students will be able to calculate the weighted average cost of capital for a business and assess its usefulness when making investment decisions; calculate the degree of financial gearing for a business and explain its significance; evaluate different capital structure options available to a business.

(LO6) Students will be able to describe the nature of dividends and evaluate the arguments concerning their potential impact on shareholder wealth; describe some important issues (theories) on dividends; describe the factors that determine the level of dividends

(LO7) Students will be able to describe the shareholder value approach (SVA) and explain its implications for the management of a business; explain SVA, MVA (market value added), EVA (economic value added), TSR (total shareholder return) and discuss their role in measuring and delivering shareholder value.

(LO8) Students will be able to identify and discuss the main reasons for mergers and takeovers; discuss the advantages and disadvantages for each of the main forms of purchase consideration used in takeovers.

(S1) Global citizenship - Relevant economic/political understanding

(S2) Problem-solving skills

(S3) Commercial awareness

(S4) Organisational skills

(S5) Communication skills

Teaching Method: Lecture
Description: Two-hours long weekly lectures over twelve weeks are scheduled.
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Tutorial
Description: One-hour long fortnightly workshops are scheduled starting from week 3.
Scheduled Directed Student Hours: 5
Attendance Recorded: Yes
Notes: Attendance is registered for all workshop sessions. Reasons for absences must be reported to Workshop Leader(s).

Self-Directed Learning Hours: 121
Description: Students are advised to follow the lecture notes and develop the contents by reading the text book assigned for the module. Workshop questions and problems must be attempted before attending the workshop sessions. Suggested outline answers and solutions will be provided after all groups have done the workshops.

Costs Information:
There are no specific costs attached to this module.

There are the following non-modular requirements :
Either ACFI103, ACFI107 or ULMS101 and ULMS102

This module is a pre-requisite for the following modules:
ACFI308

Skills/Other Attributes Mapping

Skills / attributes: Communication skills
How this is developed: Reporting and explaining results, theories, etc.
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Organisational skills
How this is developed: Mergers and acquisitions; capital structure; dividend policy
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Commercial awareness
How this is developed: Short term & long term financing options
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Problem-solving skills
How this is developed: Capital Budgeting & Investment Appraisal; financial ratio analysis
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Global citize nship - Relevant economic/political understanding
How this is developed: Understanding Business Objectives
Mode of assessment (if applicable): Mid-Term

Introduction to Financial Management and review of Finance function; Financial planning and projected financial statements;

Analysing and interpreting financial statements; time value of money;

Capital investment decisions - risk and return: the basics;

Capital investment decisions continued: risk and return;

Capital Investment Decisions: risk and return;f inancing a business: the basics; efficient market hypothesis;

Reading Week;

Mid term exam;

The cost of capital; the basics; capital structure;

Corporate dividend structure;

Measuring and Managing for shareholder value;

Takeovers, mergers and share valuation;

Revision and review of the module;

Revision part two.