Introductory description

The module introduces students to the finance field by developing the essential knowledge to solve general finance problems. This is a skills-based module that will help students to think critically and build an intuitive understanding of how financial decision-making works in practice. To achieve these objectives, the module includes case studies and applications of the skills one needs to master to examine common problems faced by financial managers. By teaching the basic concepts in finance, the module will develop the necessary knowledge and appreciation to enable students to enter into intelligent discussion with finance professionals.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

• The role of finance in business and the contribution of financial decision-making to value creation

• Fundamental valuation principles, including the time value of money, risk, return, opportunity cost and diversification

• Valuation of financial securities and the relationship between cash flows, risk, required returns and value

• Public financial markets, including price formation, market information, market efficiency and the implications for firms raising capital

• Sources of finance and the financing choices available to firms, including debt and equity

• Entrepreneurial finance, including financing across the business lifecycle, venture capital, staged financing and exit

• Mergers and acquisitions as investment and financing decisions, including value creation, synergies and market reactions

• Integrating investment, valuation and financing decisions across different firms, projects and market contexts

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate an understanding of fundamental financial principles and how they inform value creation, investment and financing decisions
• Understand and evaluate how firm characteristics, investment opportunities and financial market conditions influence financial decision-making
• Critically analyse financial problems and real-world business situations by identifying the key factors affecting financial decisions
• Critically evaluate alternative courses of action and form well-reasoned financial judgements

Indicative reading list

Reading lists can be found in Talis

Subject specific skills

Evaluate projects, measure risk and return, and estimate firm and project cost of capital
Demonstrate practical knowledge of a spreadsheet package and IT applications for financial analysis
Interpret financial information in the context of macro-economic conditions and current trends in sustainable finance

Transferable skills

Demonstrate analytical and problem solving skills
Demonstrate written communication skills