The module covers key elements of Financial Management and associated quantitative and qualitative aspects. These are essential ingredients of the skills and knowledge portfolio for aspiring senior managers. It provides students with a conceptual and theoretical basis for managing finance in the context of making financial decisions. It explores and evaluates measurement and valuation matters relating to short and longer term financial operational decision making, issues in financing and investments decision, and policies for dividend and returns of value to owners. Key aspects explored include financing decisions, cost of capital issues the theory and application of risk-related capital investment decisions, financing decisions, cost of capital issues, the nature of shareholder value, and company valuation. Accordingly, it identifies and evaluates the key financial challenges facing directors and managers concerning the selection of projects to invest in, the financing of such investments, and issues relating to the management of the relationship with finance providers.
Upon successful completion of the module, a student will be able to:
- Understand key managerial finance issues and their management.
- Balance the drivers of using profit as a measurement of performance against the drivers of using cash, and assess financial performance
- Identify and appraise investment opportunities, taking account of cost of capital and risk, including incremental cash flows and investment appraisal
- Identify and evaluate sources of finance in the context of implications for capital structures and returns to shareholders
- Identify and critique ways of returning value to shareholders
Identify and evaluate methods to value a firm
- Nature/challenges of financial management
- Planning for profit, cash and balance sheets
- Capital Investment appraisal, including evaluation of risk, and consideration of associated strategic issues and priorities
- Sources of finance, optimal capital structures, and cost of capital issues, and consideration of associated strategic issues and priorities
- Shareholder value, including free cash flow, and consideration of associated strategic issues and priorities
- Business valuation
- Returning value to shareholders, and consideration of associated strategic issues
50% unseen 2-hour examination; 40% group report; 10% online test (1 hour)
Current students should refer to Moodle for specific details of the current year’s assessment.
The core text is Financial Management for Decision Makers, 7/e, by Peter Atrill ©2014 | University of Plymouth Business School | ISBN-10: 129201606X • ISBN-13: 9781292016061 | ©2014 | Pearson | Paper, 656 pp | Published 19 Jun 2014