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MN10571: Introduction to finance

Follow this link for further information on academic years Academic Year: 2014/5
Further information on owning departmentsOwning Department/School: School of Management
Further information on credits Credits: 6
Further information on unit levels Level: Certificate (FHEQ level 4)
Further information on teaching periods Period: Semester 2
Further information on unit assessment Assessment Summary: CW 20%, EX 80%
Further information on unit assessment Assessment Detail:
  • Coursework (CW 20% - Qualifying Mark: 35)
  • Examination (EX 80% - Qualifying Mark: 35)
Further information on supplementary assessment Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Further information on requisites Requisites: In taking this unit you cannot take MN10311
Further information on descriptions Description: Aims:
The unit introduces students to the issues involved in a firm¿s investment and financing decisions. Students will develop a knowledge of new investment appraisal, cost of capital, and the effect of capital structure on the value of the firm. The course will proceed to consider issues such as desirable capital structure and optimal dividend policy. This course provides a basis for (and is a pre-requisite for) the 2nd year Principles of International Finance course.

Learning Outcomes:
By the end of this unit, the student should be able to:
* Analyse investment appraisal problems.
* Estimate a firm's cost of capital.
* Calculate a firm's optimal capital structure in the basic Miller-Modigliani model (with and without tax).
* Describe the issues involved in determining a firm's optimal capital structure.
* Describe the issues involved in determining a firm's optimal dividend policy.

Skills:
Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making.

Content:
New Investment Appraisal.
Cost of Capital (WACC and the dividend growth, and CAPM).
Capital structure and its relation to firm value.
Effect of new projects with different capital structures and risk on firm value.
Dividend policy (Dividend Irrelevance and Gordon Growth model).
Further information on programme availabilityProgramme availability:

MN10571 is Compulsory on the following programmes:

School of Management
  • UMMN-AYB06 : BSc(Hons) International Management with Year Abroad (Year 1)
  • UMMN-AFB04 : BSc(Hons) Management (Year 1)
  • UMMN-AKB04 : BSc(Hons) Management with Year long work placement (Year 1)
  • UMMN-AKB05 : BSc(Hons) Management with Marketing with Year long work placement (Year 1)

Notes:
* This unit catalogue is applicable for the 2014/15 academic year only. Students continuing their studies into 2015/16 and beyond should not assume that this unit will be available in future years in the format displayed here for 2014/15.
* Programmes and units are subject to change at any time, in accordance with normal University procedures.
* Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.