Financial Management 1
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This paper covers capital budgeting and working capital management for private and public sector organisations. Three key important questions are answered in this course: What long-term investments should the firm take on? The cost of long-term financing to pay for the investment? How will we manage the everyday financial activities of the firm?
Provide quick access to the whys and how of dealing with the three most important questions in finance: Capital Budgeting, Capital Structure and Working Capital Management. Provide easy-to-understand information, including equations and examples that can be quickly applied to most problems of corporate finance.Tutorials
All students should attend one tutorial (one hour) per week.
Mobile Phones and Cross Chats
As a courtesy to others, students are strongly urged not to disrupt lecture sessions by using the mobile phones and cross chatting during these sessions. Students are advised to disable their mobile phones during lectures.
Students who successfully complete the paper should be able to:
Identify and explain the use of equities, bonds and bank finance to fund corporate actions (LO1).
Identify the difference between bonds and stocks. Gaining insights into the bond features. Explain and show how the stock prices affects dividend growth.Linked to the following assessments:
Understand capital budgeting techniques and the analysis of evaluating projects (LO 2).
Linked to the following assessments:
Apply risk-return analysis and security market line information to company decisions (LO 3).
Understand how to calculate risk and return and the relation between them. Develop the security market line with an intuitive approach that bypasses much of the usual portfolio theory. Realize the CAPM model and discuss beta estimation.Linked to the following assessments:
Understand financing choices relevant to the life-cycle of the firm (LO 4).
.Linked to the following assessments:
The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam. The final exam makes up 0% of the overall mark.
The internal assessment/exam ratio (as stated in the University Calendar) is 100:0 or 0:0, whichever is more favourable for the student. The final exam makes up either 0% or 0% of the overall mark.
Error: Assessment components must add up to 100%
At least one Assessment Component needs to be entered
|Component Description||Due Date||Time||Percentage of overall mark||Submission Method||Compulsory|
31 Mar 2020
|2. Mid-term Test||
4 May 2020
|3. Individual Assignment||
25 May 2020
|4. Final Test||
16 Jun 2020
No set time
Required and Recommended Readings*
Fundamentals of corporate finance
Book by S.A. Ross; R.W. Westerfield; B.D. Jordan
12th Edition, Mc Graw Hill Education.
MindTap, providing topic features - websites, practice exercises,videos and questions on a weekly basis.
Weekly references to an online news item relating to the topics
Lecture slides, tutorial resources and related teaching materials will be available in Moodle.
Cengage App downloadable from Google play provides mobile access to Text book and MindTap support.
The course has 36 (3 X 12) contact hours (lectures and tutorials). The rest of the 150 hours expected workload in this 15-point paper can be distributed as follows: 20 hours to complete the Assignment, 35 hours to prepare for and attend the Midterm Test and 59 hours to prepare for and attend the Final Exam.
Linkages to Other Papers*
Prerequisite papers: FINA201 or FINAN101
Restricted papers: FINA311, FINA510