Overview

The main aim of this module is to provide you with an introduction to corporate finance. You will examine the concepts and principles underlying key financial decisions, risk and return, the evaluation of projected capital investment and analysis of financial performance, for example. The module further offers insights into the nature of the financial instruments, financial markets and financial intermediaries, with particular focus on the banking business.

Topics studied in this module will include:

-Present value and the opportunity cost of capital; -Net present value and alternative methods of investment appraisal; -Investment risk and return, and portfolio theory; -The Capital Asset Pricing Model; -Main types of financial instruments, financial markets and financial intermediaries -Unique characteristics of banks and recent developments in the banking sector -Theory of central banking; monetary policy; supervision and lender of last resort

Assessment Strategy

Threshold (50%–59% / C- to C+) Has shown knowledge of the key areas and principles and the main elements of the subject area are understood. Fair integration of theory/ practice/ information in the assessed work. Case study shows limited evidence of background study and research and there is some irrelevant material and weakness in structure. Fair integration of theory/ practice/ information in the assessed work.

Good (60%-69% / B- to B+) Has shown a strong knowledge and understands most of the subject area. Good integration of theory/practice/information in the assessed work. Case study shows evidence of background study and research and the answer is focussed with a good structure.

Excellent (70%-100% / A- to A*) Has shown a comprehensive knowledge and detailed understanding of the subject area. Excellent integration of theory/practice/information in the assessed work. Case study shows extensive background study and research and the answer is highly focussed and well-structured.

Learning Outcomes

• Analyse the role of financial markets and financial intermediaries

• Apply techniques for financial valuation and rules for capital investment

• Critically evaluate the banking businesses and the role of a central bank

• Provide effective solutions to risk and return in the context of financial decision-making and portfolio concepts in finance