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.
Present value and the opportunity cost of capital;
Net present value and alternative methods of investment appraisal;
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;
Finance for Small and Medium-sized Entities (SMEs).
Basic understanding of key concpets and analytical techniques.
Broad and sound understanding of key concepts and good analytical skills.
Creative understanding of concepts and analytical techniques.
Understand the nature of risk and return in finance.
Apply techniques for financial valuation and rules for capital investment.
Analyse financial performance.
Understand the portfolio concept in finance.
Understand the nature and implications of alternative long-term financing decisions.
|COMPREHENSION TEST||Semester 1 Online Test||10|
|EXAM||Semester 1 exam 1.5hrs||30|
|REPORT||Semester 2 assignment||30|
|EXAM||Semester 2 exam 1.5hrs||30|
Teaching and Learning Strategy
A minimum of 160 hours of private study is advised.
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
- 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).
- Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.
- Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
Talis Reading listhttp://readinglists.bangor.ac.uk/modules/asb-2202.html
Pre- and Co-requisite Modules
Courses including this module
Compulsory in courses:
- N400: BA Accounting and Finance year 2 (BA/AF)
- N401: BA Accounting & Finance (with International Experience) year 2 (BA/AFIE)
- N322: BA Banking and Finance year (BA/BIF)
- NN44: BSc Accounting and Banking with International Experience year 2 (BSC/ABIE)
- NN43: BSc Accounting and Banking year 2 (BSC/ACCB)
- NN46: BSc Accounting and Banking (4 year with Incorp Found) year 2 (BSC/ACCB1)
- NN4J: BSc Accounting and Finance (4 year with Incorp Found) year 2 (BSC/ACCF1)
- NN4H: BSc Accounting and Finance year 2 (BSC/ACCFIN)
- N402: BSc Accounting & Finance (with International Experience) year 2 (BSC/ACCFINIE)
- 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)
- N406: BSc Accounting and Finance (Bangor International College) year 2 (BSC/BICAF)
- N324: BSc Banking and Finance (Bangor International College) year 2 (BSC/BICBF)
- N105: BSc Business Studies (Bangor International College) year 2 (BSC/BICBS)
- N106: BSc Business Stud & Finance (Bangor International College) year 2 (BSC/BICBSF)
- L193: BSc Financial Economics (Bangor International College) year 2 (BSC/BICFE)
- N101: BSc Business Studies year 2 (BSC/BS)
- N10B: BSc Business Studies (4 year with Incorporated Foundation) year 2 (BSC/BS1)
- 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)
- L111: BSc Financial Economics year 2 (BSC/FINEC)
- L11B: BSc Financial Economics (4 year w Incorporated Foundation) year 2 (BSC/FINEC1)
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)
- NR33: BA Banking/Italian year 2 (BA/BIT)
- NR34: BA Banking/Spanish year 2 (BA/BSP)
- NM11: BA Business and Law year 2 (BA/BUSALAW)
- NM1B: BA Business and Law (4 year with Incorporated Foundation) year 2 (BA/BUSLAW1)
- NR41: BA French/Accounting year 2 (BA/FRA)
- NR31: BA French/Banking year 2 (BA/FRB)
- NR42: BA German/Accounting year 2 (BA/GA)
- NR32: BA German/Banking year 2 (BA/GB)
- N500: BA Marketing year 2 (BA/MK)
- L190: BSc Business Economics year 2 (BSC/BEC)
- L19B: BSc Business Economics (4 year with Incorporated Foundation) year 2 (BSC/BEC1)
- L191: BSc Business Economics with International Experience year 2 (BSC/BECIE)
- L192: BSc Business Economics (Bangor International College) year 2 (BSC/BICBE)
- N503: BSc Marketing (Bangor International College) year 2 (BSC/BICMRK)
- N501: BSc Marketing year 2 (BSC/MKT)
- N50B: BSc Marketing (4 year with Incorporated Foundation) year 2 (BSC/MKT1)