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 | Professor Jing Chen |
| Semester | Spring Semester |
| Academic Year | 2024/5 |
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
You will be guided through learning activities appropriate to your module, which may include:
- Weekly face to face classes (e.g. labs, lectures, exercise classes)
- Electronic resources to support the learning (e.g. videos, exercise sheets, lecture notes, quizzes)
Students are also expected to undertake at least 50 hours of self-guided study throughout the duration of the module, including preparation of formative assessments.
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