Module ECOS1011: FOUNDATIONS OF FINANCE

Department: Business School (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 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.
• Capital market efficiency.
• Cost of capital.
• Capital structure.
• Dividend policy.
• Long term financial planning.
• Short term financial planning and working capital management.
• An introduction to corporate restructuring - mergers and acquisitions.
• Introduction to international finance.

Learning Outcomes

• By the end of this module students should:
• Understand the fundamental concepts of corporate finance.
• Appreciate the relationship between these fundamental concepts and decision-making by practitioners and participants in financial markets.
• Have knowledge of methods and applications of quantitative techniques relating to essential issues in finance.
• Appreciate the framework in which financial issues and problems are presented, providing a foundation for appropriate analysis.

• Students will develop the following subject-specific skills over the course of the module:
• Ability to explain and interpret key implications of fundamental concepts in corporate finance, for example relating to capital structure and dividend policy.
• Practice in the application of core mathematical skills to foundational concepts in finance, such as the time-value of money and capital budgeting.
• Critical thinking in terms of core concepts in finance and their application to real-world issues.

• Students will have the opportunity to develop the following key skills:
• Problem Solving and Analysis - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to demonstrate understanding and manipulate core concepts in finance, in undertaking seminar work and answering examination questions.
• Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of seminar and examination questions.
• Planning and Organisation and Time Management - e.g. by revising relevant material and preparing for the examination.
• Computer Literacy - e.g. by accessing, and downloading teaching material from DUO, undertaking bibliographical search, and information retrieval for seminars and assignments.

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

• Teaching is by lectures and seminars. Learning takes place through attendance at lectures, preparation for and participation in seminar 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