Fundamentals of Financial Management
| Module title | Fundamentals of Financial Management |
|---|---|
| Module code | BEAM047 |
| Academic year | 2025/6 |
| Credits | 15 |
| Module staff | Ms Claire Lavers () |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 420 |
|---|
Module description
Summary:
Fundamentals of Financial Management will provide you with a thorough grounding in the principles of finance. It will cover the appraisal of models and issues in financial management. This module will introduce you to corporate finance theory and financial management. It covers techniques for capital budgeting, the role of risk and the cost of capital. It introduces the topics of financial markets and market efficiency, portfolio diversification and simple asset pricing models, the pricing of shares and bonds as well as providing an introduction to international finance.
Additional Information:
Internationalisation
Investment theory and corporate finance are international by nature and the principles taught can be applied in any country. The module also provides an introduction to international finance.
External Engagement
The module is linked with various professional bodies like CISI (Chartered Instituted of Securities and Investment) and CFAI (Chartered Financial Analysts Institute).
Employability
This module covers many different aspects of finance and prepares the students for employment in different financial sectors. Students acquire quantitative skills, analytical skills, problem-solving, and written skills.
Sustainability
The entire module is about the fair valuation of financial assets which is of interest to those involved in sustainability. Access to sources of financial data and financial information, lectures and case study material is available for all students online.
Module aims - intentions of the module
The aim of the module is to introduce you to the subject of financial management and provide you with the skills required in subsequent finance modules. In particular the module provides you with a critical understanding of the basic concepts of investment and financing decisions, risk and return in financial markets, and their implications for the financial decisions made by both investors and corporations, including capital budgeting techniques and the valuation of bonds and stocks. Through a combination of lectures and tutorial classes, you will be provided with a solid foundation in financial theory and practice, providing the necessary grounding for further modules in
finance.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. calculate and explain methods for capital budgeting and investment appraisal
- 2. explain the concepts of risk and return in financial markets;
- 3. explain and apply the concept of efficient markets
- 4. explain and demonstrate the principles of valuing common stocks and bonds;
- 5. analyse and use models of portfolio diversification and asset pricing;
- 6. explain the differences between domestic and international finance;
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 7. develop theoretical arguments based on analytical reasoning;
- 8. rigorously analyse problems in finance;
- 9. interpret financial data and problems in the light of established theories.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 10. plan and manage their own study;
- 11. make appropriate use of learning resources;
- 12. critically analyse problems arising in both academic and practical contexts.
Syllabus plan
- Introduction to finance
- The time value of money
- Investment appraisal I
- Investment appraisal II
- Introduction to the Efficient Markets Hypothesis (EMH)
- Introduction to valuing bonds and stocks
- Introduction to Portfolio Theory and CAPM
- Introduction to international finance
- Revision
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 32 | 118 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning & Teaching activities | 22 | Lectures |
| Scheduled Learning & Teaching activities | 10 | Seminars with assigned problem set |
| Guided Independent Study | 118 | Reading, preparation for classes and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Problem sets | 10 hours | 1-12 | Interpretation and discussion of correct answers during seminars |
| Mock exam paper | 2 hours | 1-12 | Suggested solutions |
| ELE quizzes | Various | 1-12 | Suggested solutions |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Written examination | 70 | 2 hours | 1-12 | Suggested solutions |
| MCQ test | 30 | 1 hour | 1-4, 8-11 | Suggested solutions |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Final written examination (70%) | Written examination (2 hours, 70%) | 1-12 | Referral/deferral Period |
| MCQ test (30%) | Written examination (1 hour, 30%) | 1-4, 8-11 | Referral/Deferral period |
Re-assessment notes
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 50%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 50%.
Indicative learning resources - Basic reading
Recommended textbooks:
- Brealey, Myers, Allen, Edmans., 2023, Principles of corporate finance, 14th Edition, New York : McGraw-Hill Education
Indicative learning resources - Web based and electronic resources
- Given before each lecture and seminar via ELE
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 17/07/2014 |
| Last revision date | 14/04/2025 |
