MA1801: Finance I: Financial Markets and Corporate Financial Management

School Cardiff School of Mathematics
Department Code MATHS
Module Code MA1801
External Subject Code 100401
Number of Credits 10
Level L4
Language of Delivery English
Module Leader Dr Kirstin Strokorb
Semester Spring Semester
Academic Year 2020/1

Outline Description of Module

This module provides students with concepts and knowledge of the structure and function of financial systems. It also introduces students with techniques and tools of corporate financial management at firm level. Students need to learn various fundamental topics on value of money, investment appraisal, cost of capital; capital structure and firm valuation; working capital management and capital budgeting; dividend policy. Depending on contemporary debates some further advanced topics may be addressed as well.

On completion of the module a student should be able to

  • Discuss basic composition and functions of the financial system and explain the role of different financial institutions in the financial markets;
  • Distinguish between equity and debt, and explain the nature and characteristics of financial securities;
  • Apply the concept of time value of money in financial decision making;
  • Use various investment appraisal methods to choose value enhancing projects;
  • Apply capital management methods to analyse capital structure of a firm and capital budgeting under equity and/or debt financing;
  • Evaluate different types of dividend policies and how these would affect firm values and performances;
  • Interpret share repurchase and analyse its potential impact on firm decision making and values.

How the module will be delivered

Modules will be delivered through blended learning. You will be guided through learning activities appropriate to your module, which may include:

  • On-line resources that you work through at your own pace (e.g. videos, web resources, e-books, quizzes),
  • On-line interactive sessions to work with other students and staff (e.g. discussions, live streaming of presentations, live-coding, group meetings)
  • Face to face small group sessions (e.g. tutorials, exercise classes, feedback sessions)

Skills that will be practised and developed

Skills:


An ability to establish the generic picture of the infrastructure of general financial markets and firm structure; skills to apply investment appraisal methods to select effective projects and valuation methods to evaluate firm value and budgeting; and understanding of how firms implement dividend pay-out and share repurchase.

Transferable Skills:

Communication skills

Reporting skills  

Decision making skills

Analytical skills

Numerical Skills
Problem solving skills

Assessment Breakdown

Type % Title Duration(hrs)
Exam - Spring Semester 100 Finance I : Financial Markets And Corporate Financial Management 2

Syllabus content

Introduction to Financial Systems

Classification and role of financial markets and institutions

Nature and characteristics of financial securities

Features of debt and equity financing as sources of funds

Time value of money and cost of capital

Investment decision – pay back method, net present value, internal rate of return method

Project risk analysis: Sensitivity and Scenario Analysis

Capital structure in perfect & imperfect markets and firm (levered/unlevered) valuation

Working capital and capital budgeting

Dividend policy

Essential Reading and Resource List

An interactive version of this list is now available via our new reading list software: https://whelf-cardiff.alma.exlibrisgroup.com/leganto/public/44WHELF_CAR/lists/6034744790002420?auth=SAML


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