Principles of Finance (BS0003)

? Credit Points : 20 ? SCQF Level : 8 ? Acronym : MSE-2-PF

Returns on financial investments: defining returns; normal and real interest rates; share returns-technical analysis and the efficient markets hypothesis. The risk/return relationship: defining risk; portfolio diversification; capital asset pricing model; options, warrants and convertibles. Company finance the capital budgeting decision-discounted cash flow techniques, risk analysis; the financial structure decision-available types of funding, the Modigliani-Miller propositions, tax, bankruptcy costs, agency; cost of funds for investment projects; dividend policy; working capital management

Entry Requirements

? Pre-requisites : Business Studies 1 (BS0001) OR (Industrial Management 1 (BS0002) plus Techniques of Management (ME0002)) NOTE: for Economics with Management Science programme, EITHER Principles of Finance OR Business Economics(BS0029) is a mandatory course in year 2.

Subject Areas

Home subject area

Business Studies, (Management School and Economics, Schedule H)

Delivery Information

? Normal year taken : 2nd year

? Delivery Period : Semester 1 (Blocks 1-2)

? Contact Teaching Time : 2 hour(s) per week for 10 weeks

? Other Required Attendance : 1 hour(s) per week for 8 weeks

First Class Information

Date	Start	End	Room	Area	Additional Information
20/09/2007	10:00	10:50	Lecture Theatre 3, Appleton Tower	Central	Week 2 onwards lectures are on Mondays and Thursdays 1000-1050

All of the following classes

Type	Day	Start	End	Area
Lecture	Monday	10:00	10:50	Central
Lecture	Thursday	10:00	10:50	Central

? Additional Class Information : Plus tutorials

Summary of Intended Learning Outcomes

COURSE OBJECTIVES AND LEARNING OUTCOMES

Knowledge and Understanding

On completion of the course, students should be able:
a) to describe the main financial assets and how they may be valued
b) to describe the key aspects of company finance theory
c) to discuss critically the contribution of finance theory to financial practice.

Cognitive Skills

On completion of the course, students should be able:
a) to demonstrate that they can work in a tutorial group to analyse a financial problem
using concepts covered in the lectures
b) to demonstrate that they can solve simple problems in finance

Key Skills

On completion of the course, students should:
a) have been encouraged to develop their written skills through the coursework assignment and the degree examination
b) be able to demonstrate an ability to solve numerical problems through tutorials and the degree examination
c) be able to communicate effectively in a tutorial group.

Subject-Specific Skills

On completion of the course, students should:
a) be aware of the techniques and insights relevant to the valuation of financial assets and company financial decisions
b) be aware of the uses and limitations of these techniques and insights.