Principles of Financial Management

FIN5900

Title	Principles of Financial Management
Code	FIN5900
School	RBS
Module Level	5
Module Code	FIN5900
Available Summer	N
Semester	1
Credits	12
ECTS Credits	6
Contact Hours	48
Course Length (wks)	12
Course Leader	Brian Kriefman
Lecturers	Tony Skone
Course Aims	The module aims to: Develop the student’s understanding of the functions of financial managers Enable students to make decisions relating to the control of stock, debtors and other elements of working capital Enable them to interpret the financial accounts of a company
Course Content	Written Numeracy Accounting Techniques Problem Solving Decision Making
Learning Outcomes	On completion of this module, students should be able to: LO1 Understand and evaluate the functions of financial managers. LO2 Carry out an appraisal of long-term investments using profits & cash flows. LO3 Understand the concept of the time value of money. LO4 Make decisions relating to the control of stock, debtors and other elements of working capital. LO5 Estimate the market value of debt and equity, with or without growth. LO6 Estimate the rate of return of debt and equity, with or without growth. LO7 Interpret the financial accounts of a company, using share valuation techniques and ratio analysis. LO8 Understand the risk/return trade-off, portfolio analysis and the capital asset pricing model.
Presentation	Students attend class sessions. These comprise a range of activities include interactive lectures, videos, discussions, group work and presentations. These relate to topics that are set in a scheme of work for each module. Learning outcomes for the programme and specific modules are applied to the content under discussion at each session. A consistent approach in this is the relationship of theory to practice. Students are introduced to theories and content; A core text or texts is recommended and students are directed to further reading.
Reading Recommended	ARNOLD G. (2005), Corporate Financial Management (3^rd Ed.). Harlow: FT Publishing. ATRILL, P (2006), Financial Management for Decision Makers (4^th Ed.). Harlow: Ft Prentice Hall. BREARLEY, R.A. & MYERS S.C. (2006), Principles of Corporate Finance (8^th Ed.). New York: McGraw-Hill. SAMUELS, WILKES and BRAYSHAW (1999), Financial Management and Decision Making (1^st Ed.). Chapman & Hall; Thomson, London SKONE A.(2006) Management Accounts – How to use them to Control Your Business. Gower.
Reading Required	SKONE, A.M.(2006) Business Finance In the UK: MTA Publishing, London
Pre-Requisites	ACC4800 Financial Accounting I
Asseseement Methods	Time Constrained Assessment - Week 5 - 25% Individual Assignment - Week 11 - 25% Written Examination - Exam Week - 50%
Weekly Schedule	Introduction to Financial Management Capital Investment Appraisal The lease/buy decision Investment in working capital Investment Overview Sources of finance & financial markets The cost of capital and the capital structure decision Weighted Average Cost of Capital Gearing Valuing stocks & bonds Dividend policy Ratio analysis Portfolio analysis, the risk/return trade-off and the capital asset pricing model Economic Value Added and Market Value Added