This module is not currently running in 2021 to 2022.
The study of finance concerns investment, financing and distribution decisions. This module considers some fundamentals of these aspects from the perspective of a management environment. It begins by considering the impact of risk on investment appraisal. This theme is continued with the analysis of possible diversification via Portfolio Theory which is then further developed to the consideration of a Pricing Model.
The financing of an investment opportunity can significantly influence its viability and future potential. Students will consider the characteristics of and some valuation approaches to various sources of finance. In addition, participants will be introduced to the Capital Structure debate and its implications for management decision-making.
The module provides understanding of the financial market environment in which companies operate. Various aspects of the efficiency of financial markets and some of the implications thereof are investigated. Students are made aware of and will contribute to the consideration of problems faced by corporations when operating within a stock market. The module further develops analytical skills via the application of valuation models to a range of finance sources.
Examination (60%) and coursework (40%) comprising a written assignment.
The recommended textbook is Brealey R, Myers S and Allen F, Principles of Corporate Finance. McGraw Hill. 10th edn. ISBN 9780071314176
For those with no finance background an excellent book is Watson, D and Head, A (2004), Corporate Finance: Principles and Practice, 5th Edition, Financial Times/Prentice Hall, ISBN: 9780273734086
See the library reading list for this module (Canterbury)
• To show the importance of investment analysis within a corporate environment of uncertainty.
• To explain the financial system in which enterprises operate.
• To demonstrate understanding of investment analysis within an environment of uncertainty.
• To show the importance of structuring corporate finance.
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