| Unit name | Principles of Finance |
|---|---|
| Unit code | ACFI20001 |
| Credit points | 20 |
| Level of study | I/5 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Dr. Khachatryan |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
Mathematical and Statistical Methods (EFIM10008) or Mathematics for Economics (EFIM10023) plus Fundamentals of Accounting and Finance (ACFI10003) or Introduction to Accounting (ACCG10052) |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why is this unit important?
This unit is a core intermediate course in finance. It provides the techniques and institutional contexts for students considering a career in financial services. It will also help them make informed decisions in their own personal finance decisions.
Corporate finance helps you understand how firms come to adopt new projects and what drives the choice of funding sources. The unit highlights the role of information asymmetry and incentive structures in these decisions. The unit is article-based and helps you develop skills in reading the research literature
How does this unit fit into your programme of study?
This unit is mandatory on BSc Accounting and Finance, BSc Economics and Finance, BSc Economics and Accounting and optional for BSc Economics, BS Economics and Management and some other programmes. All mandatory units are must-pass.
An overview of content
The course explores aspects of corporate finance, examining how companies interact with the financial markets and how decisions about internal and external financing affect the value and risk of corporate flows. The aim is to provide a well-rounded picture of decisions that company managers make, the effects of these decisions, and the information that should be used as a basis for these decisions.
How will students, personally, be different as a result of the unit
Students will gain a deeper understanding of tools of analysis used in finance based on computing the present value of cash flows, such as dividend discount model and adjusted present value technique. Consequently, they will be better equipped to make informed financial decisions in both their career and personal life.
Learning Outcomes
Upon successful completion of the unit, students will be able to:
1. Employ mathematical tools to compute risk and return for portfolio of securities.
2. Present, explain and apply the Capital Asset Pricing model for computing expected stock returns and critically evaluate the evidence for informational efficiency of stock markets.
3. Calculate and apply different costs of capital in valuation.
4. Understand and explain different capital structure theories.
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, exercise lectures, tutorials, discussion boards and other online learning opportunities.
Tasks which help you learn and prepare you for summative tasks (formative):
Tasks which count towards your unit mark (summative):
This unit will be assessed by 100% exam (3 hours covering ILO1, ILO2, ILO3, ILO4).
When assessment does not go to plan
Any re-assessment required will be in the form of a 3 hour exam (100%)
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFI20001).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
