Principles of Finance - ACCT5230

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Module delivery information

Location Term Level1 Credits (ECTS)2 Current Convenor3 2024 to 2025
Combined Autumn and Spring Terms 5 30 (15) Ortenca Kume checkmark-circle


This module is concerned with the principles which underlie the investment and financing decision making process. Before a rational decision can be made objectives need to be considered and models need to be built. Short-term decisions are dealt with first, together with relevant costs. One such cost is the time value of money. This leads to long term investment decisions which are examined using the economic theory of choice, first assuming perfect capital markets and certainty. These assumptions are then relaxed so that such problems as incorporating capital rationing and risk into the investment decision are fully considered. The module proceeds by looking at the financing decision. The financial system within which business organisations operate is examined, followed by the specific sources and costs of long and short-term capital, including the management of fixed and working capital


Contact hours

Total contact hours: 65
Private study hours: 235
Total study hours: 300

Method of assessment

Main assessment methods:
Exam, 3 hours (70%)
Multiple Choice Test (10%)
In-course test, 45 minutes (10%)
Presentation (10%)

Reassessment method:
100% exam

Indicative reading

Lumby, S. and Jones, C. (2015) Corporate Finance: theory and practice, 9th Edition, 2015, Andover: Cengage Learning ISBN 13: 9781408079090

McLaney, E. (2014). Business Finance, 10th Edition, 2014, Harlow: Pearson Education Limited
ISBN - 13: 9781292016122

See the library reading list for this module (Canterbury)

Learning outcomes

The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Differentiate the contexts in which finance operates.
- Evaluate the concepts and principles that underlie the investment and financing decision-making processes, including the strengths and weaknesses of quantitative techniques.
- Identify the nature of a problem and selection of appropriate quantitative techniques.
- Compare and contrast alternative approaches to investment appraisal and financing as well as to evaluate the appropriateness of different approaches to solving problems in finance.
- Identify, find and summarise transactions and other economic events, including decision analysis, discounted cash-flow analysis and the analysis of financial risk.

The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Effectively communicate information, arguments and analysis in a variety of forms to specialist and non-specialist audiences.
- Plan, work independently and use relevant resources.
- Communicate and work effectively within a group context


  1. Credit level 5. Intermediate level module usually taken in Stage 2 of an undergraduate degree.
  2. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
  3. The named convenor is the convenor for the current academic session.
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