core for : MSc in Finance (part-time), MSc in Technology Management and Innovation (part-time),
|MA in Global Economic Relations (part-time), |
The aim of the course is to provide a broad understanding of the principles and techniques of finance, and to apply these to decisions faced by financial managers. The learning objectives will be achieved through the discussion of both theory and real-world applications.
The course is divided into six sections, beginning with the fundamentals of asset valuation and the pricing of financial assets such as bonds and shares. In Section 2, we will introduce techniques to value investments. Section 3 will turn to corporate financing, exploring capital structure (debt vs equity) choice and the cost of capital. Section 4 will discuss the relationship between risk and return, and develop models that underlie the calculation of discount rates used in asset valuation. Section 5 will examine how companies formulate their payout policy to reward shareholders. Finally, Section 6 will provide an introduction to financial derivatives including options.
Understanding the problems covered in the course will be important to all students seeking a career in business. For the importance of finance education please see “Financial Illiteracy Rampant in the Corporate World”, Financial Times 15 Aug 2014.