ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title FINANCIAL MANAGEMENT FOR BUSINESS
Code ACFI205
Coordinator Mr A Gazi
Finance and Accounting
Adnan.Gazi@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 5 FHEQ First Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ACFI103 INTRODUCTION TO FINANCE; ULMS101 FUNCTIONS OF BUSINESS I; ULMS102 FUNCTIONS OF BUSINESS II; ACFI107 INTRODUCTION TO ACCOUNTING AND FINANCE (NON-SPECIALIST) 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 12

6

      12

6

36
Timetable (if known) 60 mins X 1 totaling 12
 
60 mins X 1 totaling 6
 
      60 mins X 1 totaling 12
60 mins X 1 totaling 6
 
 
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Written Timed Unseen Examination (Online) Assessment Type: Written Exam Duration: 2.5 hours Weighting: 85% Reassessment Opportunity: Yes Penalty for Late Submission: Standard  2.5 hours    85       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 2: Short Essay Assignment Assessment Type: Coursework Duration: 10 days Weighting: 15% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL Penalty Applies A  10 days    15       

Aims

The module aims to provide: a framework to understand the role of financial managers in the business and how financial management can support the decision making process of these managers;
an understanding of the basic principles of financial management;
an understanding of the key numerical techniques used in financial management;
a fundamental knowledge of the institutional setting ;
a link between financial management and other principal managerial activity.


Learning Outcomes

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

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

(LO3) Students will be able to explain the nature, importance, key stages and 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 considered when choosing an appropriate source of financing and explain the advantages and disadvantages of 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 and describe the factors determining the level of dividends.

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

(LO8) Students will be able to identify and discuss the main reasons for mergers and takeovers and 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 and Learning Strategies

Teaching Method: Online Asynchronous Learning Materials
Description: approximately Two-hours content each week weekly
Unscheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Synchronous Lecture
Scheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Seminar
Description: One-hour long bi-weekly session
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes
Notes: Attendance is registered for all sessions. Reasons for absences must be reported to seminar Leader(s).

Teaching Method: Group Study
Scheduled Student Hours: 6
Attendance recorded: No

Self-Directed Learning Hours: 114
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 tutorial sessions. Suggested outline answers and solutions wi ll be provided after all groups have done the tutorials.

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 t his is developed: Capital Budgeting & Investment Appraisal; financial ratio analysis
Mode of assessment (if applicable): Examination and Mid-Term

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


Syllabus

 

Introduction to financial Management and review of the functions of finance; Financial planning and projected financial statements;

Analysing and interpreting financial statements; Time value of money;

Capital investment decisions - risk and return: Part 1;

Capital investment decisions- risk and return: Part 2;

Capital Investment Decisions: risk and return financing a business; Efficient market hypothesis;  

Reading Week;  

The cost of capital; Capital structure;

Corporate dividend structure;

Measuring and managing the shareholder value;

Takeovers, mergers and share valuation;

Revision and review of the module: Part 1;

Revision and review of the module: Part 2.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.