FIN20010 Principles of Finance

Academic Year 2020/2021

This subject is an introduction to modern finance. As domestic and international companies became more sophisticated, it was realised that every executive required an understanding of corporate finance. Topics covered include corporate governance, agency theory, financial analysis and planning, asset valuation, capital investment decisions, the concept of risk and return, and introduction to portfolio theory.

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Curricular information is subject to change

Learning Outcomes:

Upon completion of this module, students should understand why corporate finance is important and have a comprehensive understanding of the role of corporate governance and agency theory within firms. Students should be able to value stocks and bonds and to understand how the equity markets function. Students will be able to apply the techniques of capital budgeting, and identify capital investment projects that maximize shareholder wealth. Students will also be introduced to the concepts or risk and retrurn and the basic principles of portfolio theory.

Indicative Module Content:

Topics covered include:
- Corporate Governance
- Financial Analysis
- Introduction to Valuation: The time value of money
- Discounted Cashflow Valuation
- Bond Valuation/Bond Markets
- Equity Valuation/Equity Markets
- Capital Investment Decisions
- Introduction to project analysis
- Risk, return, and the Capital Asset Pricing Model
- The cost of capital
- Raising capital

Student Effort Hours: 
Student Effort Type Hours
Lectures

24
Tutorial

10
Autonomous Student Learning

76
Total

110
Approaches to Teaching and Learning:
Approaches to Teaching and Learning include lectures, tutorials, problem-based learning.
 
Requirements, Exclusions and Recommendations
Learning Requirements:

There are no qualifying requirements , but a knowledge of statistics is expected.


Module Requisites and Incompatibles
Incompatibles:
ECON20190 - Introduction to Financial Econ, FIN10670 - Introduction to Finance, FIN20040 - Foundations of Finance


 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Project: Application of theoretical concepts covered in the module to a large listed company. To be completed over the course of the module. Interim report due week 6. Final report due week 12. Throughout the Trimester n/a Graded No

40
Continuous Assessment: Multiple Choice Exam (Quantitative) Week 7 n/a Graded No

25
Continuous Assessment: Bloomberg Market Concepts Week 6 n/a Graded No

10
Continuous Assessment: Multiple Choice Exam (Quantitative) Week 12 n/a Graded No

25

Carry forward of passed components
No
 
Resit In Terminal Exam
Spring No
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Class Feedback will be provided to students