This subject introduces the analytical approaches used by managers when making financial decisions. Core topics include the time value of money, the relationship between risk and return (i.e., CAPM), portfolio theory (i.e., diversification), and capital structure. On successful completion of the subject, students will be able to apply these concepts to value both stocks and bonds, estimate the cost of capital and implement discounted cash flow techniques in order to make capital budgeting decisions. Students will also gain exposure to real-time market data via the Bloomberg database.
|Faculty||Bond Business School|
1. Explain to specialist and non-specialist audiences the relevant issues encountered by financial managers, along with the analytical techniques available in addressing these issues, while maximising firm value. 2. Utilize spreadsheets, formulae, and financial calculators to value various cash flow structures (e.g., amortising loans, bonds, common stocks) whilst identifying and addressing critical aspects of uncertainty. 3. Apply advanced theoretical and technical finance knowledge to analyse the risk/return trade-off of investments and contextualise the relationship between a firm and the capital markets. 4. Demonstrate competence in the use of a Bloomberg terminal to interpret market data, economic indicators and other financial research. 5. Exercise judgement, under minimal guidance, and employ technical finance knowledge to prepare necessary cash flows and methodically evaluate the capital budgeting projects of a firm whist evaluating their cost of capital.
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
|Withdraw – Financial?||12/02/2022|
|Withdraw – Academic?||05/03/2022|