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Financial Management

Overview

Module description

This module is very quantitatively and mathematically rigorous. You will tackle complicated questions that involve basic statistics. It is strongly advised that you undertake the prerequisites.

The aims of this module are to:

  • introduce you to the international world of capital markets and the theory of financial management
  • help you gain an understanding of the financial system, which includes stock, bond and derivative markets and financial instruments
  • deepen your knowledge of project evaluation for capital budgeting and how to value projects using discounted cash flow analysis
  • introduce market efficiency.

The syllabus also includes portfolio theory, capital asset pricing models, capital structure theory and empirical evidence, dividend policy and merger and acquisition.

    Learning objectives

    By the end of this module, you will:

    • understand how different financial markets function
    • estimate the valuation of financial instruments (including stocks, bonds, options and futures)
    • understand the term structure of interest rates
    • be able to make capital budgeting decisions under both certainty and uncertainty
    • appreciate the application of the Capital Assets Pricing Model in practice
    • deploy a working knowledge of the capital structure theory and dividend policy of a firm
    • understand the theory of mergers and acquisitions.