Module ASB-2202:
Finance

Module Facts

Run by Bangor Business School

20 Credits or 10 ECTS Credits

Semester 1 & 2

Organiser: Dr Danial Hemmings

Overall aims and purpose

NOTE: The 10-credit module ASB2203 Finance comprises the Semester 1 content of ASB-2202.

AIMS: To examine the concepts and principles underlying key financial decisions. To provide an introduction to corporate finance.

Course content

Present value and the opportunity cost of capital;

Net present value and alternative methods of investment appraisal;

Project analysis;

Financial planning, and analysing financial performance;

Investment risk and return, and portfolio theory;

The Capital Asset Pricing Model;

Short-term and long-term financing;

Capital structure, and market imperfections;

Weighted average cost of capital;

Dividend policy;

Financial and real options.

Assessment Criteria

threshold

Basic understanding of key concpets and analytical techniques.

good

Broad and sound understanding of key concepts and good analytical skills.

excellent

Creative understanding of concepts and analytical techniques.

Learning outcomes

  1. Understand the nature of risk and return in finance.

  2. Apply techniques for financial valuation and rules for capital investment.

  3. Analyse financial performance.

  4. Understand the portfolio concept in finance.

  5. Understand the nature and implications of alternative long-term financing decisions.

Assessment Methods

Type Name Description Weight
Semester 1 Online Test 12.5
Semester 1 exam 2hrs 37.5
Semester 2 assignment 12.5
Semester 2 exam 2hrs 37.5

Teaching and Learning Strategy

Hours
Private study

A minimum of 160 hours of private study is advised.

160
Lecture

One 2-hour lecture per week.

40

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Numeracy - Proficiency in using numbers at appropriate levels of accuracy
  • Information retrieval - Able to access different and multiple sources of information
  • Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting

Subject specific skills

  • knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
  • Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
  • An appreciation of the nature of the contexts in which finance can be seen as operating, including knowledge of the institutional framework necessary for understanding the role, operation and function of markets and financial institutions (e.g. the economic, legal, regulatory and tax environment, both national and international; the firm; the capital markets and the public sector).
  • A knowledge of the major theoretical tools and theories of finance, and their relevance and application to theoretical and practical problems (e.g. concept of arbitrage and examples of its use; financial mathematics and capital budgeting criteria; informational efficiency; optimal risk sharing; portfolio theory; asset pricing models and the valuation of securities; cost of capital; derivative pricing; risk management; information asymmetry; principal agency relationships; signalling; Fisher separation and capital budgeting criteria; behavioural finance; term structure and the movement of interest rates; determination of exchange rates and financial intermediation).
  • An understanding of the financing arrangements and governance structures of business entities, and an appreciation of how theory and evidence can be combined to assess the effectiveness and efficiency of such arrangements (e.g. decisions as to sources of finance and financial structure; the pricing of corporate securities; the market for corporate control; corporate governance structures and mechanisms; financial planning and international dimensions of finance).
  • Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
  • Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.

Resources

Pre- and Co-requisite Modules

Courses including this module

Compulsory in courses:

Optional in courses: