Module ECOS1011: FOUNDATIONS OF FINANCE

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

ECOS1011: FOUNDATIONS OF FINANCE

Tied To

• N200: Business
• N420: Business Finance
• NN43: Accounting and Finance

Pre-requisites

Corequisites

Excluded Combinations

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.