Postgraduate Course: Finance (MBA) (BUST11209)
Course Outline
| School |
Business School |
College |
College of Humanities and Social Science |
| Course type |
Standard |
Availability |
Not available to visiting students |
| Credit level (Normal year taken) |
SCQF Level 11 (Postgraduate) |
Credits |
10 |
| Home subject area |
Business Studies |
Other subject area |
None |
| Course website |
None
|
Taught in Gaelic? |
No |
| Course description |
It is no exaggeration to state that finance is a part of almost all business decisions. Issues of valuation and risk are central to many decisions facing firms. Discounted cash flow techniques, time value of money, capital budgeting and risk, and other such concepts have entered into the business vocabulary and are used with varying degrees of knowledge and accuracy. This course is intended to provide a foundation in financial decision making $ú and an understanding of the techniques of financial analysis. It introduces the key elements of financial management and provides an outline of how to carry out financial evaluations of business decisions.
The course covers both descriptive material on financial markets, institutions and instruments, and analytical material on the assessment of projects and the valuation of securities.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites |
|
| Prohibited Combinations |
|
Other requirements |
None
|
| Additional Costs |
None |
Course Delivery Information
|
| Delivery period: 2011/12 Semester 1, Not available to visiting students (SS1)
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WebCT enabled: Yes |
Quota: None |
| Location |
Activity |
Description |
Weeks |
Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
| No Classes have been defined for this Course |
| First Class |
First class information not currently available |
| No Exam Information |
Summary of Intended Learning Outcomes
Knowledge and Understanding:
The course is intended to introduce some of the fundamental concepts underlying finance theory and to outline the role of the finance function within an enterprise.
After completing the course, participants will;
&· have an understanding of the functions and aims of financial management
&· have an appreciation of some of the main techniques of financial analysis on which finance practice depends
&· understand financial decision-making within the organisation
&· understand the role of capital markets
&· understand how debt and equity are valued in financial markets
&· be able to apply simple discounted cash flow analysis to business decisions
&· comprehend the criteria used to evaluate investments or capital projects
&· appreciate how risk affects project evaluation
&· know how to apply the financial approach to evaluate decisions with uncertain outcomes
Cognitive Skills:
The course will develop;
&· skills of reasoning and numerical analysis
&· comfort with the use of financial calculators
&· familiarity with financial concepts and techniques
Key Skills:
After completing this course, students should be able to;
&· undertake simple financial computations, namely compounding and discounting in order to derive future values and present values for a series of cash flows
&· use basic financial methodologies, namely present and future value calculations, to solve problems in finance
&· undertake financial valuation using discounted cash flow analysis in situations of uncertainty
Subject Specific Skills:
Participants will be able to;
&· analyse straightforward financial problems that businesses encounter and be able to formulate appropriate solutions
&· appraise critically the systems adopted by firms for assessing and approving major capital investments
&· undertake a simple investment appraisal using discounted cash flow methods
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Assessment Information
The course is assessed by an assignment worth 40%.
The end-of-semester examination counts for 60%. The examination will contain 2 case studies, both of which are compulsory.
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Special Arrangements
| None |
Additional Information
| Academic description |
Not entered |
| Syllabus |
Session 1. Financial Instruments and Markets
The capital markets; debt and equity; sources of finance; cost of raising capital; (advanced) derivatives
Session 2. The Financing Decision
Impact of raising new funds (either debt or equity) on the firm; leverage effect of borrowing; borrowing and bankruptcy
Session 3. Discounted Cash Flow Techniques
Methods to analyse investments or projects; simple figures of merit; time value of money calculations; the net present value criterion; extensions to the technique; determining relevant cash flows
Session 4. Case: Business Capacity $ú the Investment, Financing decision - and Corporate Management
Case study based lecture $ú forms the basis for the project assessment (group and individual).
Session 5. Risk Analysis in Investment Decisions
Risk-return trade-off; risk and diversification; risk-adjusted discount rates; the cost of capital; cost of capital in new investments; real options; economic value-added
Session 6. Financial Forecasting $ú NOTE we return to chapter 3
Developing a financial forecast; the percentage of sales approach; financial forecasts and operational and financial constraints; using a spreadsheet; taking account of future uncertainties
Session 7. Managing Growth
Sustainable growth; growth and the firm&©s performance and financing decisions; when growth is greater than sustainable; the problem of low growth
Session 8. Revision
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| Transferable skills |
Not entered |
| Reading list |
Not entered |
| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords |
Not entered |
Contacts
| Course organiser |
Mr Gavin Kretzschmar
Tel: (0131 6)50 2448
Email: Gavin.Kretzschmar@ed.ac.uk |
Course secretary |
Mr Stuart Mallen
Tel: (0131 6)50 8071
Email: Stuart.Mallen@ed.ac.uk |
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copyright 2011 The University of Edinburgh -
1 September 2011 5:43 am
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