Run by Bangor Business School
20.000 Credits or 10.000 ECTS Credits
Semester 1 & 2
Organiser: Dr David Ayling
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.
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; Estimating the cost of debt and equity; Weighted average cost of capital; Capital structure, and market imperfections; Dividend policy; Finance for Small and Medium-sized Entities (SMEs).
D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.
A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.
C- to C+
C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.
Understand the nature and implications of risk and return in corporate finance.
Apply techniques for financial valuation and rules for capital investment.
Analyse financial performance.
Understand the portfolio concept in finance and the implications on corporate financing decisions.
Understand the nature and implications of alternative long-term financing decisions.
|Semester 1 Online Test||15.00|
|Semester 1 Formal Examination||35.00|
|Semester 2 Online Test||15.00|
|Semester 2 Formal Examination||35.00|
Teaching and Learning Strategy
Private study will include time reviewing lecture materials and recommended reading, completing assignments, and revising for the exam.
One 2-hour lecture per week.
- Literacy - Proficiency in reading and writing through a variety of media
- Numeracy - Proficiency in using numbers at appropriate levels of accuracy
- Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
- Exploring - Able to investigate, research and consider alternatives
- Information retrieval - Able to access different and multiple sources of information
- Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
- Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
- Presentation - Able to clearly present information and explanations to an audience. Through the written or oral mode of communication accurately and concisely.
- Management - Able to utilise, coordinate and control resources (human, physical and/or financial)
- 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.
Talis Reading listhttp://readinglists.bangor.ac.uk/modules/asb-2202.html
Core text: R.A. Brealey, S.C. Myers and F. Allen, 'Principles of Corporate Finance', Latest edition, McGraw-Hill International. Second-hand copies of earlier editions of the text are also OK for the course.
Pre- and Co-requisite Modules
Courses including this module
Compulsory in courses:
- NN4J: BSc Accounting and Finance (4 year with Incorp Found) year 2 (BSC/ACCF1)
- NN4H: BSc Accounting and Finance year 2 (BSC/ACCFIN)
- NN4F: BSc Accounting and Finance year 2 (BSC/ACCFINF)
- N402: BSc Accounting & Finance (with International Experience) year 2 (BSC/ACCFINIE)
- NN4P: BSc Accounting and Finance with Placement Year year 2 (BSC/ACCFINP)
- 8V55: BSc Banking and Finance (with International Experience) year 2 (BSC/BFIE)
- N391: BSc Banking and Finance year 2 (BSC/BFIN)
- N39B: BSc Banking and Finance (4 year w Incorporated Foundation) year 2 (BSC/BFIN1)
- N39F: Banking and Finance year 2 (BSC/BFINF)
- N39P: BSc Banking and Finance with Placement Year year 2 (BSC/BFINP)
- N406: BSc Accounting and Finance (Bangor International College) year 2 (BSC/BICAF)
- N324: BSc Banking and Finance (Bangor International College) year 2 (BSC/BICBF)
- N202: BSc Business Man & Finance (Bangor Uni International Coll) year 2 (BSC/BICBMF)
- N106: BSc Business Stud & Finance (Bangor International College) year 2 (BSC/BICBSF)
- L193: BSc Financial Economics (Bangor International College) year 2 (BSC/BICFE)
- N312: BSc Banking with Financial Tech year 2 (BSC/BKFT)
- NN23: BSc Business Management and Finance year 2 (BSC/BMF)
- NN2B: BSc Business Man & Finance (4 year with Incorp Foundation) year 2 (BSC/BMF1)
- NN2F: BSc Business Management and Finance year 2 (BSC/BMFINF)
- NN2P: Business Management and Finance with Placement Year year 2 (BSC/BMFP)
- NN1H: BSc Business Studies and Finance year 2 (BSC/BSFIN)
- NN1J: BSc Business Studies and Finance (4 year with Incorp Found) year 2 (BSC/BSFIN1)
- L112: BSc Financial Economics with International Experience year 2 (BSC/FEIE)
- L111: BSc Financial Economics year 2 (BSC/FINEC)
- L11B: BSc Financial Economics (4 year w Incorporated Foundation) year 2 (BSC/FINEC1)
- L11F: BSc Financial Economics year 2 (BSC/FINECF)
- L11P: BSc Financial Economics with Placement Year year 2 (BSC/FINECP)
Optional in courses:
- NQ26: BA Astudiaethau Busnes a Chymraeg year 2 (BA/ABCH)
- NR43: BA Accounting/Italian year 2 (BA/AIT)
- NR44: BA Accounting/Spanish year 2 (BA/ASP)
- N107: BA Business year 2 (BA/BUS)
- NR41: BA French/Accounting year 2 (BA/FRA)
- NR42: BA German/Accounting year 2 (BA/GA)
- NL41: BSc Accounting and Economics year 2 (BSC/ACCEC)
- NL4B: BSc Accounting and Economics (4 year with Incorp Foundation) year 2 (BSC/ACCEC1)
- NL4F: BSc Accounting and Economics year 2 (BSC/ACCECF)
- NL4P: BSc Accounting and Economics with Placement Year year 2 (BSC/ACCECP)
- NL42: BSc Accounting and Economics with International Experience year 2 (BSC/AEIE)
- N109: BSc Bus Analytics w Financial Tech year 2 (BSC/BAFT)
- L190: BSc Business Economics year 2 (BSC/BEC)
- L19B: BSc Business Economics (4 year with Incorporated Foundation) year 2 (BSC/BEC1)
- L19F: BSc Business and Economics year 2 (BSC/BECF)
- L191: BSc Business Economics with International Experience year 2 (BSC/BECIE)
- L19P: BSc Business Economics with Placement Year year 2 (BSC/BECP)
- L192: BSc Business Economics (Bangor International College) year 2 (BSC/BICBE)
- IN00: BSc Computer Information Systems for Business year 2 (BSC/CISB)
- IN0B: BSc Computer Information Sys for Bus (4 year w Incorp Found) year 2 (BSC/CISB1)
- IN02: BSc Computer Information Systems for Business (Franchised) year 2 (BSC/CISBF)