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Financial Management

Overview

Module description

This module introduces you to the international world of capital markets and explores the theory of financial management. You will gain an understanding of the role, purpose and function of the financial management for a business. You will also learn about the financial system and financial instruments, which includes how finance can be raised from within the business and distributed; how the cost of capital is determined; how to apply principles underlying the valuation of business and financial assets, etc. The module also broadens your skills and knowledge of project appraisal, working capital management and advanced capital investment appraisal techniques. The main techniques employed in managing financial risk are also covered.

The module prepares you for more advanced and specialist study in the modules Applied Financial Management and Investing in Securities Markets.

Indicative module syllabus

  • Investment Appraisal
  • Portfolio Theory
  • CAPM and Cost of Capital
  • Working Capital Management
  • Business Valuations
  • Efficient Market Hypothesis
  • Capital Structure Theory
  • Dividend Policy
  • Finance for Small and Medium-Sized Entities (SMEs)
  • Risk Management

Learning objectives

By the end of this module, you will be able to:

  • understand financial managers' investment, financing and dividend policy decisions
  • apply principles of business and asset valuations
  • make sensible capital investment appraisals
  • apply working capital management techniques
  • appreciate the application of the Markowitz Portfolio Theory
  • deploy a working knowledge of the capital structure theory and dividend policy of a firm
  • understand the theory of mergers and acquisitions
  • explain and apply risk management techniques.