Applied Financial Management (Postgraduate)

• Credit value: 15 credits at Level 7
• Convenor and tutor: Dr Grace Peng
• Assessment: a three-hour examination (100%)

In this module we cover the basic building blocks of financial management that are of primary concern to corporate managers, and all those considerations needed to make financial decisions both inside and outside the firm. We will build on the concept of net present value and address capital budgeting aspects of investment decisions. Time value of money is then applied to value financial assets, before extensively considering the relationship between risk and return. Finally, we introduce the theory and practice of financing and dividend decisions.

By the end of this module you will:

• understand how different financial markets function
• be able to estimate the valuation of financial instruments (including stocks and bonds)
• understand the term structure of interest rates
• be able to make capital budgeting decisions under both certainty and uncertainty
• appreciate the application of the Capital Assets Pricing Model in practice
• have a working knowledge of the capital structure theory and dividend policy of a firm
• be able to integrate subject matter studied on related modules and demonstrate the multi-disciplinary aspect of practical financial management problems.