Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

The module aims: to introduce you to the key concepts of Finance in a way that builds sound intuition from the outset, without sacrificing rigour; to prepare the foundations for more advanced study of Finance by encouraging you to develop a critical understanding of the main theories and models of Finance (and the assumptions that underpin them); to provide you with structured opportunities to practise using the key tools and techniques of Finance; to encourage you to read the financial press and to make links with what you are learning in the classroom.

Principal learning outcomes

By the end of the module you should be able to: critically appraise the value added by a capital project by calculating the present value of expected future cash flows, and estimating the cost of capital; define the different forms of market efficiency, and discuss the findings of empirical tests of the Efficient Markets Hypothesis; compare and contrast the main sources of financing for a company; explain what is meant by capital structure and dividend policy, and discuss the relevance of each to corporate financial management; distinguish between spot and forward exchange rates; state and apply the Interest-Rate Parity and Purchasing Power Parity theorems in the context of foreign exchange; define key shareholder ratios (e.g. earnings per share, dividend yield and price-earnings ratio) and use discounted cash-flow techniques to estimate share prices; price simple financial option contracts; write informed critiques of key issues in Finance; use discounted cash-flow techniques to value financial securities and/or estimate the value added by capital projects; construct spreadsheets to calculate Net Present Values and Internal Rates of Return, and to price simple financial option contracts; explain key theoretical models and the assumptions that underpin them, and reflect critically on the limitations of those models; interpret empirical evidence; solve numerical problems and analyse case-study information; communicate complex ideas effectively, both verbally and in writing; discuss topical issues about the theory and practice of Finance; explain and interpret financial market information; solve structured numerical problems; construct spreadsheets to value financial instruments and test the robustness of those values to changes in key inputs.

Timetabled teaching activities

2 hours per week lecture, 1 hour per week seminar

Departmental link

Module assessment

Assessment group Assessment name Percentage
12 CATS (Module code: IB132-12)
D (Assessed/examined work) Assessed Course Work 20%
Examination - Main Summer Exam Period (weeks 4-9) 80%
Assessed Course Work 20%
Examination - Main Summer Exam Period (weeks 4-9) 80%
15 CATS (Module code: IB132-15)
D1 (Assessed/examined work) Assessed Course Work 20%
Examination - Main Summer Exam Period (weeks 4-9) 80%
Examination - Main Summer Exam Period (weeks 4-9) 100%

Module availability

This module is available on the following courses:

Optional Core