UCL School of Management

Module Fact Sheet

MSIN0146: Financial Management

Taught by
Level
Advanced
Prerequisites
None
Eligibility
3rd year IEP students with Finance and Accounting Minor, and 3rd, 4th year undergraduates from all departments
Terms
Term 1
Delivery method
3-hour session comprising part-lecture and part individual and group activities (x 10 weeks)
Assessment
50% unseen 2-hour examination; 40% group project; 10% online test

Course overview

This is a postgraduate course covering selected topics relating to corporate strategic finance (representing topics such as: capital funds strategy, financial planning, internal v external profit growth, and dividend-related issues), and to corporate managerial finance (concerning operational financial matters, including but not limited to: financing and investment decisions, and financial risk management). Key aspects explored are the theory and application of capital investment decisions, financing decisions, cost of capital issues, the nature of shareholder value, and company valuation. It identifies the key financial challenges facing directors and managers concerning the selection of projects to invest in, the financing of such investments, and the management of the relationship with finance providers. It includes, where appropriate, international considerations, including forex.

Learning outcomes

Upon successful completion of the module, a student will be able to:

  • Understand key managerial finance (MF) issues and their management.

  • Calculate/apply a range of CAPEX (capital expenditure) analyses, including risk aspects.

  • Recognise the significance of and calculate Weighted Average Cost of Capital (WACC), in the contexts of the Dividend-based Capital Asset Pricing Model (CAPM), risk free investment rates, equity premium, capital structure (debt-to-equity) planning, and other issues relating to Beta (ß).

  • Develop an Optimal Capital Structure (OCS), based upon differing funding sources.

  • Construct integrated financial plans to balance different (and sometimes conflicting) liquidity and performance objectives of company managers, taking account of differing funding sources.

  • Understand the nature and significance of shareholder value.

  • Calculate business valuations.

  • Understand how the forex market works.

Topics covered

  • Nature/challenges of financial management

  • Planning for profit, cash and balance sheets

  • Capital Investment appraisal: NPV, IRR, PI

  • Risk within capital Investment appraisal: ENPV, sensitivity analysis

  • Sources of finance

  • Foreign exchange

  • Free cash flow

  • Shareholder value

  • Business valuation

  • Cost of capital issues

  • Dividend decisions

Assessment summary

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.

Essential reading

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

Past versions of this module

MSIN3G23 17/18

MSIN3G23 16/17

Last updated Friday, 31 August 2018