Business Finance

Code

BUSI1020

School

Business

Level

1

Credits

10

Semesters

Spring UK

Summary

Introduction to the fundamental concepts of finance and in particular: 
- Understand that there is a relationship between the risk of an investment and the expected returns. 
- Understand the concept of the time value of money and be able to calculate the present value of a single and multiple future cash flows. 
- Be able to apply NPV to project appraisal in realistic situations.  
- Understand the fundamental ideas or portfolio theory and be able to apply the CAPM. 
- To be able to estimate cost of capital for equity (CAPM and dividend growth model) and bonds (market value and IRR).

Target Students

Qualifying Year Business School undergraduate and BSc Hons Financial Mathematics students taking or who have taken BUSI1008 Quantitative Methods 1b and BUSI1009 Financial Accounting. Also available to Exchange students.

Co-requisites

Modules you must take in the same academic year, or have taken in a previous year, to enrol in this module:

• Quantitative Methods 1b (BUSI1008)
• Financial Accounting (BUSI1009)
• Probability and Statistics 1 (MATH1102)

Classes

• One 1-hour tutorial each week for 4 weeks
• One 2-hour lecture each week for 11 weeks

Assessment

• 100% Exam (2-hour): In person exam.

Assessed by end of spring semester

Educational Aims

Learning Outcomes

Knowledge and understanding
This module develops a knowledge and understanding of:
•    The dynamic and changing nature of business and the consideration of the future of organisations within the global business environment, including the management of risk
•    The sources, uses and management of finance
•    The use of accounting and other information systems for planning, control, and decision making
•    The use of accounting and other information systems for managing financial risk
•    The development of appropriate policies and strategies within a changing environment to meet stakeholder interests
•    The use of risk management techniques and business continuity planning to help maximise achievement of strategic objectives on the economic, social and environmental conditions of the future.
•    Economic policy at the macroeconomic level showing an understanding of analytical methods and model-based argument and of different methodological approaches and their strengths and limitations.
•    The concepts of the time value of money and the risk and return relationship for different sources of finance and for portfolios.
•    The concepts of financial securities, their features and markets.
•    The concepts of capital structure and its importance to firm value.

Intellectual skills
This module develops:
•    The ability to analyse facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions
•    Conceptual and critical thinking, analysis, synthesis and evaluation
•    The ability to analyse and evaluate financial data.
 

Professional practical skills
This module develops:
•    Numeracy and quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena
•    Commercial acumen based on an awareness of the key drivers for business success, causes of failure and the importance of providing customer satisfaction and building customer loyalty

Transferable (key) skills
This module develops:
•    Self-management and a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time
•    Articulating and effectively explaining information

Conveners

• Dr Hong Li