- Student Records
Programme & Unit Catalogues

School of Management, Unit Catalogue 2011/12


MN20026: Principles of finance

Click here for further information Credits: 6
Click here for further information Level: Intermediate (FHEQ level 5)
Click here for further information Period: Semester 1
Click here for further information Assessment: EX 100%
Click here for further information Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Click here for further information Requisites: In taking this unit you cannot take ES20070 and before taking this unit you must take MN10311. An aptitude with quantitative techniques is desirable.
Click here for further information Description: Aims:
This module introduces students to the principal tools of economic analysis used in financial decision making. It introduces students to the key principles of discounted cash flows, theories of asset pricing, valuation of alternative financial instruments, and will provide students with a critical understanding of portfolio diversification and the methods of valuation.

Learning Outcomes:
At the end of this module students will be able to:
1. understand the theoretical basis of the time value of money and the calculation of present values
2. construct a diversified portfolio
3. critically evaluate the theory of efficient markets
4. value equity and fixed-income financial instruments
5. differentiate between different types of options
6. understand the principles of futures and forward contracts.

Skills:
Numerical facility with accounting and financial data, and identification/conversion to relevant economic data for decision-making.

Content:
Extensions & applications of present value model, optimality of NPV rule; security valuation: equities and bonds; risk, return and cost of capital; portfolio theory and diversification; asset pricing & CAPM; stock market efficiency; options; forwards and futures contracts.
Click here for further informationProgramme availability:

MN20026 is Compulsory on the following programmes:

School of Management
  • UMMN-AFB02 : BSc (hons) Accounting and Finance (Full-time) - Year 2
  • UMMN-AKB02 : BSc (hons) Accounting and Finance (Full-time with Thick Sandwich Placement) - Year 2

MN20026 is Optional on the following programmes:

School of Management
  • UMMN-ANB01 : BSc (hons) Business Administration (Full-time with Thin Sandwich Placements) - Year 3

NB. Programmes and units are subject to change at any time, in accordance with normal University procedures.