Nottingham University Business School
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Business Finance

Please note that the following information may be subject to change.

Programme: Undergraduate

Module Code: N11605

Semester: Spring

Convenor: Hong Li

Credits & Level: 10 credits; Level 1

Pre-requisites: N11123 (Financial Accounting).

Co-requisites: N11127 (Quantitative Methods 1b).

Target Students: Available to all Business School students and Joints/Minor students with the necessary pre-requisite, N11123 Financial Accounting. Financial Maths students do not need to take N11127 co-requisite. CANNOT be taken if taken/are taking N11119 Introduction to Finance, T11012 Intro to Accounting with Application to China or T11013 Intro to Finance with an Application to China

Delivery: 11 two-hour weekly lectures and 8 one-hour tutorials

Assessment: One 2-hour exam (100%)

Exam Format:Two sections. Section A - 25 multiple choice questions (2% per question - 50% total). Section B - answer TWO questions from a choice of FOUR (25% each question).

Summary of Content Introduction to the fundamental concepts of finance and in particular:

- understand that there is a relationship between the risk of an investment and the expected returns.

- understand the concept of the time value of money and be able to calculate the present value of a single and multiple future cash flows.

- be able to apply NPV to project appraisal in realistic situations.

- understand the fundamental ideas or portfolio theory and be able to apply the CAPM.

- to be able to estimate cost of capital for equity (CAPM and dividend growth model) and bonds (market value and IRR).

Aims To provide an introduction to the fundamental concepts of finance, including project appraisal, capital markets and the capital structure of firms.

Key Words: Risk; Return; Present Value; Valuation; Cost of Capital.

Learning Objectives & Outcomes Knowledge and understanding
This module develops a knowledge and understanding of:
  • The dynamic and changing nature of business and the consideration of the future of organisations within the global business environment, including the management of risk
  • The sources, uses and management of finance
  • The use of accounting and other information systems for planning, control, and decision making
  • The use of accounting and other information systems for managing financial risk
  • The development of appropriate policies and strategies within a changing environment to meet stakeholder interests
  • The use of risk management techniques and business continuity planning to help maximise achievement of strategic objectives on the economic, social and environmental conditions of the future.
  • Economic policy at the macroeconomic level showing an understanding of analytical methods and model-based argument and of different methodological approaches and their strengths and limitations.
  • The concepts of the time value of money and the risk and return relationship for different sources of finance and for portfolios.
    The concepts of financial securities, their features and markets.
    The concepts of capital structure and its importance to firm value.
Intellectual skills
This module develops:
  • The ability to analyse facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions
  • Conceptual and critical thinking, analysis, synthesis and evaluation
  • The ability to analyse and evaluate financial data.
Professional practical skills
This module develops:
  • Numeracy and quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena
  • Commercial acumen based on an awareness of the key drivers for business success, causes of failure and the importance of providing customer satisfaction and building customer loyalty
Transferable (key) skills
This module develops:
  • Self-management and a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time
  • Articulating and effectively explaining information

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Nottingham University Business School

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