Year of entry: 2022
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Course unit details:
Financial Decision Making
|Unit level||Level 1|
|Teaching period(s)||Semester 2|
|Offered by||Alliance Manchester Business School|
|Available as a free choice unit?||No|
1. Introduction to finance
2. The time value of money
3. Capital raising and evaluation of securities
4. The firm's capital budgeting decision
5. Share price behaviour and informational efficiency
6. Security risk and return
Only available to students on: BAEcon Business Studies, Accounting and/or Finance Specialists,BEconSci and Maths & Finance.
The aim of the course is to introduce students to finance, giving a foundation for subsequent finance courses in the second and third years. The approach is conceptual, emphasizing general principles, which students should be able to apply to specific problems and issues. The course introduces some of the basic techniques of finance: calculating the time value of money; valuing bonds and shares, techniques for appraising capital investments; characterising share price behaviour and the role of risk in security valuation. The main focus of classes is on problem-solving in particular finance contexts, with some consideration of discursive material.
By the end of the course students should:
- have a basic knowledge and understanding of the theoretical framework of finance;
- know some of the basic techniques used in finance;
- have a basic understanding of the role of research in finance;
- can solve problems in a variety of contexts in finance;
- the time value of money
- how companies raise capital
- how to value bonds and shares
- the firm's capital budgeting decision
- the concept of informational efficiency and associated share price behaviour
- the relation between security risk and return.
Teaching and learning methods
Lectures: 15 one hour lectures (2 hours each week)
Workshops: 6 one hour workshops.
Total study hours: 100 hours split between lectures, classes, reading, self-study and preparation for classes, coursework and examinations.
- One of the topics covered in the course deals with the history and institutional setup of the London Stock Exchange. The course will also familiarize the students with reading, analyzing and interpreting financial news through the usage of Financial Times. Students should find this information (complemented with further reading) to be helpful when looking for jobs in the UK financial industry.
- Informal advice and discussion during a lecture, seminar, workshop or lab.
- Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.
- Generic feedback posted on Blackboard regarding overall examination performance.
Hillier, Clacher, Ross, Westerfield, and Jordan (2017), Fundamentals of Corporate Finance, 3rd European Edition, McGraw-Hill.
|Scheduled activity hours|
|Practical classes & workshops||6|
|Independent study hours|
|Arif Khurshed||Unit coordinator|
Length of course: 12 weeks
Dependent course units:
- BMAN23000(A) or (B) Foundations of Finance.
- BMAN20072 if taken alongside BMAN23000(A) or (B) Foundation of Finance.
- BMAN21011 Financial Markets & Institutions.
- BMAN20081 Financial Statement Analysis (as long as BMAN10501 Financial Reporting or BMAN10621 (A), (B) or (M) Fundamentals of Financial Reporting is also taken as a pre-requisite).
Programme Restrictions: Available to students studying on the following programmes - BA (Econ) Finance, BA (Econ) Accounting & Finance, BA (Econ) Finance & Economics, BA (Econ) Business Studies specialists, BSc Maths with Finance, BEcon Sci.
BMAN10522 is available to visiting and exchange students admitted through the University of Manchester International Programmes Office.
For Academic Year 2022/23
Updated: March 2022
Approved by: March UG Committee