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IB114 - Financial Management

  • Module code: IB114
  • Module name: Financial Management
  • Department: Warwick Business School
  • Credit: 12

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

The aims of the module are: to introduce you to the key concepts of Financial Management 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 (and the assumptions that underpin them) of Financial Management; to provide you with structured opportunities to practise using the key tools and techniques of Financial Management; to encourage you to reflect on, and engage in critical discussion of, what you are reading in 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: use discounted cash-flow techniques to estimate the value added by capital projects; list the different forms of market efficiency, and interpret the results of key 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; explain the importance of financial planning over both the short term and long term; 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; construct spreadsheets to calculate Net Present Values, Internal Rates of Return and Economic Order Quantities; reflect critically on the limitations of each of the models studied; engage with peers in online discussion of topical articles selected by the module teacher from the Financial Times or The Economist, and/or data from online sources such as http://www.ft.com or http://finance.yahoo.co.uk, and make connections between what you are learning in the classroom and the real world.

Timetabled teaching activities

2 x 1-hour lectures per week, 1 x 1-hour seminar per week, online group discussion

Departmental link

http://www.wbs.ac.uk/students/undergraduate/

Module assessment

Assessment group Assessment name Percentage
12 CATS (Module code: IB114-12)
D2 (Assessed/examined work) Mid-term Multiple Choice Test 10%
  End of Term Multiple Choice Test 15%
  Online Group Discussion 15%
  1.5 hour examination (Summer) 60%

Module availability

This module is available on the following courses:

Core
  • Undergraduate Accounting and Finance (with Foundation Year) (N4N4) - Year 2
  • Undergraduate Accounting and Finance (NN35) - Year 1
Optional Core

N/A

Optional

N/A