Beruflich Dokumente
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School
Financial Management
University of Greenwich Business School
1. COURSE DETAILS
1.1 Aims
The aim of the course is to develop necessary skills and understanding needed to apply appropriate
concepts, techniques and approaches for sound decision making in financial management:
a) To enable students to analyse financial situations and offer solutions to financial management
problems.
b) To understand and apply theoretical concepts to a range of investment and financing
decisions.
How shareholder wealth is created, and the role of financial management in this process.
Investment and valuation process and techniques.
Relationship between risk and return.
Investment and financing decision making process in relation to the role of capital markets
and their efficiency.
How to value different sources of long term finance.
Alternative capital structure policies and dividend policies.
Financial Derivatives and their use in Corporate Finance.
B. Intellectual Skills:
To develop a framework and provide a set of analytical tools for financial decision making
based on financial theory and the best industry practices. To evaluate the business decision
making implications of financial management.
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B2. Wisdom
The student will select and apply appropriate tools and use sound judgement in the
application of financial decisions.
Appreciate the merits and demerits of, as well as alternatives to, various analytical
frameworks and techniques used for investment and financing decisions in business.
B3. Personal Effectiveness
Calculate, analyse, interpret and communicate business problems and solutions from the
financial perspective.
C. Subject Practical Skills:
Asses the role of capital markets in investment and financing decision making – alternatives
available, effect of market efficiency/inefficiency for financial decisions, practical
implications for managers.
Framework for analysing and deciding on debt policy and dividend policy.
D. Transferable Skills
Basic principles of finance covered on the course are the foundation for all other finance
based courses on the programme. These are also very relevant and applicable to practical
financial decisions making process in business situations and for quantifying merits of
individual projects and/or business undertakings.
D1. Critical Thinking
Critically assess merits and demerits of various financial theories and practical analytical
tools and their use in particular business situations.
Evaluate and quantify available alternatives for making investment, valuation and financing
decisions.
Access, evaluate, utilise and communicate accounting and financial data and information for
investment and financing decision making problems.
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D3. Communication Skills
Deal with complex issues in systematic and critical way, make sound judgements in the absence
of clear data and communicate analysis and solutions clearly to specialist and non-specialist
audiences.
Transferable Skills
Numerical and analytical skills.
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2. COURSE CONTENT:
A The Role of Financial Management in Decision Making and First Principles of Finance
Introduction to financial management; main function and role; corporate goals and wealth
maximisation; agency theory; models of the firm; contemporary trends in global finance; opportunity
cost of capital, time value of money and net present value rule.
B Market Efficiency
The secondary capital market, its efficiency and consequences for valuation and financing decisions.
E Portfolio Theory
Risk and return, indifference curves and utility; standard deviation as a measure of risk, efficiency
sets, risky and risk free assets; portfolio risk, systemic and unique risk; volatility; risk and
diversification.
Major types of derivative instruments, their characteristics and application; introduction to options
and option pricing, use of options for hedging and valuation.
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3. ASSESSMENT DETAILS:
A. Knowledge and
Understanding Research Based
B. Intellectual Skills 0-100% 35% 50% 2,500 Critical analysis a
Coursework – financial management
D. Transferable skills
3,000 topic.
words
A. Knowledge and
Understanding
A mix of written and
B. Intellectual Skills Mid Term Test 0-100% 15% 50% computational
C. Subject Practical Skills questions with
D. Transferable skills approximately equal
weight.
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4. INDICATIVE TEXTS:
N.B. please check for the latest editions of recommended textbooks. In addition, further
reading of academic and professional journals’ articles is recommended and expected.
Cuthbertson, K., Quantitative Financial Economics: Stocks, Bonds and Foreign Exchange,
John Wiley & Sons
Demirag, I. and S. Goddard, Financial Management for International Business, McGraw Hill
Levy, J. and M. Sarnat, Capital Investment and Financial Decisions, Prentice Hall
Lumby, S., Investment Appraisal and Financing Decisions, Chapman and Hall
Journal of Finance
Journal of Corporate Finance
Journal of Banking and Finance
Journal of Portfolio Management
Financial Analysts Journal
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Financial Management
Financial Times
Economist