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Study information

Fundamentals of Financial Management

Module titleFundamentals of Financial Management
Module codeBEAM047
Academic year2024/5
Module staff

Dr Monika Tarsalewska (Lecturer)

Duration: Term123
Duration: Weeks


Number students taking module (anticipated)


Module description


Fundamentals of Financial Management will take you through an appraisal of models and issues arising in the area of financial management. This module introduces you to corporate finance theory and financial management. It covers techniques for capital budgeting, the role of risk in capital budgeting, and the cost of capital. It introduces the topic of financial markets, covering the notion of portfolio diversification leading to simple asset pricing models. It analyses models and evidence relating to a firm’s optimal capital structure. It discusses mergers and acquisitions, followed by introduction to corporate governance.

Additional Information:


Investment theory and corporate finance are international by nature and the principles taught can be applied in any country.

External Engagement

The module is linked with various professional bodies like CISI (Chartered Instituted of Securities and Investment) and CFAI (Chartered Financial Analysts Institute).


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, team-working, and communication skills.


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 students to the subject of financial management. In particular the module provides students 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, students will be provided with a solid foundation in financial theory and practice, providing the necessary grounding for further modules in

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. explain the concepts of risk and return in financial markets;
  • 2. analyse and use models of portfolio diversification and asset pricing;
  • 3. explain and demonstrate the principles of valuing common stocks and bonds;
  • 4. explain the concept of the cost of capital and estimate the cost of capital for a corporation;
  • 5. evaluate the attractiveness of real investment projects based on their expected cash flows and the cost of capital;
  • 6. explain and discuss the factors that determine a corporation's capital structure policy;

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 corporate finance
  • Time value of money
  • Valuing bonds and stocks
  • Investment appraisal I
  • Investment appraisal II
  • Introduction to portfolio theory and CAPM
  • Behavioural finance and market efficiency
  • Capital structure 
  • Mergers and acquisitions
  • Corporate governance and responsible business
  • Revision

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning & Teaching activities20Lectures
Scheduled Learning & Teaching activities10Seminars with assigned problem set
Guided Independent Study120Reading, preparation for classes and assessments

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Problem Sets10 hours1-12Interpretation and discussion of correct answers during seminars
Mock exam paper2 hours1-12Suggested solutions
ELE quiz40 minutes1-7Suggested solutions

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Written examination702 hours1-12Suggested solutions
MCQ test301 hour3-5, 7-12Suggested solutions

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Final Written Examination (70%)Written examination 2 hours (70%)1-12August Examination Period
MCQ test (30%)Written examination 1 hour (30%)1-12August Examination Period

Indicative learning resources - Basic reading

Recommended textbooks:

Indicative learning resources - Web based and electronic resources

Given before each lecture and seminar via ELE

Indicative learning resources - Other resources

Provided via ELE

Key words search

Financial management; Portfolio theory; Asset pricing; fixed income securities; Cost of capital; Capital structure; Capital budgeting.

Credit value15
Module ECTS


Module pre-requisites


Module co-requisites


NQF level (module)


Available as distance learning?


Origin date


Last revision date