Introduction to Finance
| Module title | Introduction to Finance |
|---|---|
| Module code | BEE1006 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Dr Cecilia Chen (Lecturer) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 0 | 11 | 0 |
| Number students taking module (anticipated) | 374 |
|---|
Module description
Summary:
This module should appeal to students who wish to obtain a better understanding of financial markets and are interested in further study/career in finance. Topics covered include the role of stock and bond markets and the mechanics of investment, principles of investment, and the present value model of investment.
Additional Information:
Internationalisation
This is a highly practical module applicable across the globe. The tools (e.g., present value of cash flows) that are taught in this module can be used to evaluate investment opportunities anywhere in the world.
Sustainability
Lecture notes and other resources are available online on ELE (Exeter Learning Environment). The tools and analytical frameworks discussed in this framework are good starting points for students interested in green finance.
Employability
The skills students learn in this module are directly transferable to employment. Present value can be used to evaluate any type of investment (e.g., stock, bonds, or new projects). Through this module, students can also have better understandings of the financial markets (mainly bond and stock markets). These skills are relevant for jobs in corporate finance, consulting companies, investment banks and many other industries. This module also provides a good starting point for students interested in taking CFA Level I and CFA II exams.
Module aims - intentions of the module
The aim of this module is to provide an understanding of the functioning of financial markets and a foundation for your further study/career in finance. A theoretical framework is given to understand how individuals invest in financial markets and how to evaluate various investment opportunities (for example, US treasury bills, corporate bonds, and common stocks).
This module aims to get students acquainted with the basics of financial concepts and terminologies. This module would provide a good foundation for the students to pursue further studies or career in finance. For example, this module could be a good starting point for students to take CFA Level I and CFA II exams. Also, the concepts and ways of thinking discussed in this module may help students make better financial decisions in the future.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. demonstrate a basic understanding of stock and bond markets and various financial institutions;
- 2. demonstrate an ability to evaluate investment opportunities using the present value framework.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 3. demonstrate a basic understanding of stock and bond markets and various financial institutions;
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 4. demonstrate analytical and problem-solving skills;
- 5. demonstrate good learning approaches and habits in online/hybrid learning environments.
Syllabus plan
This module will cover the following topics:
- The Corporation (Ch.1 of Berk and DeMarzo)
- Introduction to Financial Statement Analysis (Ch.2 of Berk and DeMarzo)
- Financial Decision Making and the Law of One Price (Ch.3 of Berk and DeMarzo)
- Discounted Cash Flow Valuation (Ch.4 and Ch.5 of Berk and DeMarzo)
- Bond Valuation (Ch.6 of Berk and DeMarzo)
- Investment Decision Rules (Ch.7 of Berk and DeMarzo)
- Stock Valuation (Ch.9 of Berk and DeMarzo)
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 22 | 128 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Learning and Teaching Activity | 22 | Lectures |
| Guided Independent Study | 60 | Revision of the contents covered in the lectures |
| Guided Independent Study | 12 | Review the practice problems discussed in the lecture |
| Guided Independent Study | 24 | Undertake assignment and later review the feedback and solutions |
| Guided Independent Study | 10 | Weekly problem sets and reviewing the solutions of them |
| Guided Independent Study | 22 | Prepare for exams |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Exercises | Weekly | 1-5 | Seminar discussions |
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 |
|---|---|---|---|---|
| Mid-Term Examination | 30 | 1.5 hours | 1-5 | Written or oral feedback |
| Final Examination | 70 | 2 hours | 1-5 | Written or oral feedback |
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 |
|---|---|---|---|
| Mid-Term Examination (30%) | Examination (1.5 hours, 30%) | 1-5 | August/September Reassessment Period |
| Final Examination (70%) | Examination (2 hours, 70%) | 1-5 | August/September Reassessment Period |
Indicative learning resources - Basic reading
Core text:
Berk, J. B., & DeMarzo, P. M. (2020) Corporate Finance (5th edition): Global Edition. Pearson Education.
ISBN: 9781292304151
Access through the University’s Library: https://encore.exeter.ac.uk/iii/encore/record/C__Rb4347575__SCorporate%20Finance__Orightresult__U__X7?lang=eng&suite=cobalt
Indicative learning resources - Other resources
Further readings (if interested):
Financial Accounting:
- Libby, R., Libby, P., & Hodge, F. (2020) Financial Accounting (10th edition). McGraw-Hill.
Financial Statement analysis and evaluation:
- Penman, S. (2013) Financial Statement analysis and evaluation (5th edition). McGraw-Hill.
Investment:
- Bodie, Z., Kane, A., & Marcus, A. (2018) Investments (11th edition). McGraw-Hill.
CFA textbooks:
- CFA Program Curriculum 2020 Level I Volumes 1-6 Box Set
Link form the University’s library: http://encore.exeter.ac.uk/iii/encore/record/C__Rb4232925__SCFA__Orightresult__U__X6?lang=eng&suite=cobalt
- CFA Program Curriculum 2020 Level II Volumes 1-6 Box Set
Link form the University’s library: http://encore.exeter.ac.uk/iii/encore/record/C__Rb4232926__SCFA__Orightresult__U__X6?lang=eng&suite=cobalt
- CFA Program Curriculum 2019 Level III Volumes 1-6 Box Set
Link form the University’s library: http://encore.exeter.ac.uk/iii/encore/record/C__Rb3991323__SCFA__Orightresult__U__X6?lang=eng&suite=cobalt
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 4 |
| Available as distance learning? | No |
| Origin date | 01/09/1999 |
| Last revision date | 26/09/2023 |
