Module ECOS1011: FOUNDATIONS OF FINANCE

Department: Economics, Finance and Business (Economics and Finance) [Queen's Campus, Stockton]

ECOS1011: FOUNDATIONS OF FINANCE

Prerequisites

• None.

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• Introduce the key principles of Corporate Finance and their importance to firms
• Provide students with a solid grounding in issues of finance as they relate to business and financial markets
• Provide students with foundations to build on their knowledge and understanding in level 2
• Offer students the opportunity to develop some key skills

Content

• An introduction to finance.
• Organisational goals and the financial objectives of the corporation.
• The financial environment.
• The time dimension in finance and the time value of money.
• Valuing bonds and stocks.
• The appraisal of investment opportunities: payback, accounting rate of return, net present value, internal rate of return.
• Practical issues of investment appraisal.
• An introduction to risk and uncertainty.
• Diversification.
• Issues of market efficiency.
• Cost of capital.
• Capital structure and dividend policy.
• Long term financial planning.
• Short term financial planning and working capital management.
• Introduction to international finance.

Learning Outcomes

• Have knowledge and understanding of the basic fundamentals of Corporate Finance
• Be able to use the fundamental concepts of finance to analyse financial issues

• Have practised problem solving and analytical skills

• Written Communication - through summative assessment.
• Planning and Organisation and Time Management - e.g. by revising relevant material and preparing for the examination.
• Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to utilise concepts in finance, in answering examination questions.
• Initiative - by searching relevant literature and information in preparation for assessed work.
• Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of examination questions.
• Computer Literacy - e.g. by accessing, and downloading teaching material from DUO; using undertaking bibliographical search and information retrieval for assignments.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and tutorials. Learning takes place through attendance at lectures, preparation for and participation in tutorial classes, and private study. Formative assessment is by means of a group presentation and Multiple Choice test. Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Group presentation, individual Multiple Choice Test.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University