Module description
What is the module about?
The Financial Management module is an intermediate finance course that builds upon your existing knowledge to explore fundamental financial theories underpinning crucial corporate finance decisions. You will address pivotal financial questions such as: How should your business raise capital, and for what purpose? Should capital be sourced through debt or equity investors, and how much debt is optimal? What returns must you generate for your shareholders, and should dividends be distributed? Is it preferable to purchase assets or lease them? What are your business’s short-term cash flow requirements, and how will these needs be financed?
These essential questions regularly confront business leaders worldwide. Throughout this ten-week module, you will discover that while some solutions emerge clearly from established financial theories, others rely heavily on strategic judgment due to inherent business uncertainties. By the end of the course, you will appreciate that corporate finance, in practice, is as much an art as it is a science.
Who should do this module?
Anyone with an interest in managing a business from a financial perspective, and is apt to mathematical calculations.
Provisional Lecture Outline
Lecture 1: Investment Appraisal
Lecture 2: Project Analyses
Lecture 3: Financing Decision
Lecture 4: Dividend Payout Decision
Lecture 5: Capital Structure Decision
Lecture 6: Further Concerns on the Usage of Financial Leverage
Lecture 7: Investment Appraisal with the Consideration of Financial Leverage
Lecture 8: Financing via Leasing
Lecture 9: Financial Planning
Lecture 10: Working Capital Management
Assessment details
20% Midterm
80% Exam
Teaching pattern
Weekly workshops
Suggested reading list
Key Textbook:
- Brealey, Myers, Allen, and Edmans Principles of Corporate Finance, 14th Edition.