Module Code - Title:

FI4905 - FINANCE

Year Last Offered:

2013/4

Hours Per Week:

Lecture

2

Lab

0

Tutorial

0

Other

0

Private

0

Credits

6

Grading Type:

Prerequisite Modules:

Rationale and Purpose of the Module:

This course provides an introduction to finance for all BBS students. The aim of this course is to develop students understanding of key topics in financial theory as a basis for further studies in finance. The course will also seek to acquaint students with emerging issues in finance literature.

Syllabus:

The primary focus of this introductory course is on discounted cash flow techniques, and their application to corporate finance. This course introduces the concept of the time value of money, and the key methods of project appraisal including the net present value method, the payback period, the book rate of return, internal rate of return, profitability indices etc. the merits and demerits of each are clearly explained. Qualitative aspects of capital Budgeting and investments are also covered. The concept of market efficiency and of the link between risk and return are illustrated by reference to historical returns. Basic issues around share valuation are also discussed, and the students are introduced to derivative instruments, and how they may be used both defensively and aggressively.

Learning Outcomes:

Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)

Identify the role of financial managers in modern business organisations. Recognise and point out the tradeoff between risk and return. Interpret financial data to make informed decisions. Calculate present and future values of streams of cash flows. Calculate the payback period, accounting rate of return, net present value and internal rate of return of a project. Calculate, at a basic level, the value of equities, bonds and derivatives

Affective (Attitudes and Values)

N/A

Psychomotor (Physical Skills)

N/A

How the Module will be Taught and what will be the Learning Experiences of the Students:

Research Findings Incorporated in to the Syllabus (If Relevant):

Prime Texts:

OBrien (2008) Custom Text , Pearson

Other Relevant Texts:

Gitman, L.J. (2008) Principles of Managerial Finance , Prentice Hall

Berk, J.B. and P.M. DeMarzo (2007) Corporate Finance , Pearson

Moyer, R.C., McGuigan, J.R. and R.P. Rao (2007) Fundamentals of Contemporary Financial Management (2e) , Thomson

Programme(s) in which this Module is Offered:

Semester(s) Module is Offered:

Module Leader:

fergal.g.obrien@ul.ie