Topics in Financial Management I

Description

Contents: This module aims to cover the fundamentals of corporate finance with a focus on practical financial analysis and strategic decision-making. The course explores the key topics such as objective function of a corporation, reading and analysing corporate financial statements, performing financial calculations, evaluating investment value, valuing stocks and bonds, measuring risk and return of assets, understanding the relationship between risk and return and implications for firms’ cost of capital, and project valuation approaches.  The module equips students with both theoretical knowledge and practical tools essential for accurate financial analysis. The analytical approach of the course is structured and quantitative, emphasizing financial models and valuation techniques. Students are encouraged to apply theoretical concepts to real-world scenarios, linking financial performance to strategic corporate decisions. Teaching Delivery: The course is delivered through a combination of lectures and classes One one-hour lecture per week will introduce core theoretical concepts. One-hour seminars or workshops for the first six weeks will involve problem sets, group work, and study skills. After the first six weeks, small group tutorials will continue to provide more focused guidance. Indicative Topics 1.    Introduction to Corporate Finance and Financial Statements Analysis 2.    Time Value of Money and Net Present Value 3.    Valuation of Bonds 4.    Valuation of Stocks 5.    Investment Decisions and Net Present Value Rule 6.    Risk and Return and Asset Pricing Models 7.    Capital Budgeting Module Aims The module aims to provide a comprehensive understanding of corporate finance principles, focusing on the practical application of financial theories to strategic decision-making. It prepares students to conduct rigorous financial analysis using modern valuation techniques, critically assess investment opportunities and corporate financial strategies, and understand and manage the risk-return trade-off in asset allocation. The course encourages students to develop analytical thinking and problem-solving skills relevant to real-world financial management.