Topic outline

Module Title: Financial Analysis and Management

Module Lecturers: S. Palan/Makailla McConnell This module is designed for all business students, even those who have never had any formal financial training. It will provide an overview of the strategic managment of finances within an organisation and thus the focus is on finance and not accounting. This is a very broad area and includes the regulatory framework of account, analysis of financial statments, investment analysis and introduces international factors that affect financial management decisions. In business a basic understanding of finance is critical to business performance. Therefore, this module is designed to take you through financial principles including their application, providing a toolkit for managing financial responsibilities in a business. It focuses on the three main types of decision facing finance managers; investment decisions, financing decisions and dividend decisions and illustrates how they are interconnected with key principles of finance namely the time value of money, the risk-return trade-off, cash flows as a source of value, effect of interest rates and that market prices reflect information. The purpose of this module is to enable you to understand the financial decision-making process and to interpret the impact a financial decisions will have on value creation as without understanding, key decisions taken can have a negative impact on a business. You will be able to see the 'big picture', not just a set of unrelated topics. Assessment: The formal assessment of this module will be conducted through a closed book examination. Closed book examination 100% The closed book examination will be of three (3) hours duration. There is no assignment for this module. Indicative Reading List Core Texts

Brealey, R. Myers, S and Allen, F. (2008) Principles of Corporate Finance , (9th edn) McGraw-Hill: New York Neale, B. & Pike, R. (2009) Corporate Finance and Investment. Decisions and Strategie,s( 6th Edition). Prentice Hall Brooks, R. (2009) Financial Management: Core Concepts, 1st edition,

Pearson Education

News forum Reading List Word document Present Value and Annuity Tables Word document Module Outline per Lecturer file Sample Questions and Indicative Answers file Formulae Sheet Word document Examination 201010-MBA1-FAM-Examination Assignment

Introduction Introduction to Financial Management: Objectives, conflicts of interest, corporate governance 1 Brealey et al (2008) Chapter 1,2 pp 3-34 Pike & Neale (2009) Chapter 1, pp 3-21

Lect.1 file

Introduction to Financial Statements Brealey et al (2008) Chapter 1, pp 3-11 2 Pike & Neale (2009) Chapter 1, pp 3-21

Lect.2 file

Financial Ratios and Financial Performance 1 3 Pike & Neale (2009) Chapter 2, pp 23-57

Lect.3 file

Seminar 1 4

Seminar 1 file

Financial Ratios and Financial Performance 2 5 Pike & Neale (2009) Chapter 2, pp 23-57 Chapter 2, pp 23-57

Lect.4 file

6 Sources of Finance short term Pike & Neale (2009) Chapters 13-14; pp 323-376

Lect.5 file

Working Capital Management 1 Brealey et al (2008) Chapter 30 pp 819-849 7

Lect.6 file

Seminar 2 8

Seminar 2a file Seminar 2b file

Working Capital Management 2 Brealey et al (2008) Chapter 30 pp 819849

Lect.7 file

Seminar 3 10

Seminar 3 file

Capital budgeting Techniques 11

basic techniques, discounting, annuities and perpetuities Brealey et al (2008) Chapters 2,7 : pp13-34, 142-168

Lect.8 file

Advanced Aspects of Capital Budgeting 1 relevant cash flows, capital rationing, working capital. Brealey et al (2008) Chapters: 10-11-12 pp 23812 320

Pike & Neale (2009) Chapter 6,7 pp 139-180

Lect.9 file

13 Advanced Aspects of Capital Budgeting 2

Brealey et al (2008) Chapters: 10-11-12 pp 238320 Pike & Neale (2009) Chapter 6,7 pp 139-180

Lect.10 file

Seminar 4 14

Seminar 4 file

15

Cost of Capital 1 equity, debt, WACC Brealey et al (2008) Chapter 20 : pp529-559

Lect.11 file

Cost of Capital 2: Capital Asset Pricing Model 16 Risk Free Rate, Market Return, Market Premium, Beta Brealey et al (2008) Chapter 9: pp206-236.

Lect.12 file

Seminar 5 17

Seminar 5 file

Sources of Finance 1 Long term Debt vs Equity 18 Brealey et al (2008) Chapters:17-18 pp 442-495 Pike & Neale (2009) Chapters 18-19 pp 485545

Lect.13 file

Sources of Finance 2 19 Capital structure theories Brealey et al (2008) Chapter 19 : pp497-528.

Lect.14 file

20 Revision Class