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MN20502: Principles of finance for managers

[Page last updated: 23 August 2022]

Academic Year: 2022/23
Owning Department/School: School of Management
Credits: 6 [equivalent to 12 CATS credits]
Notional Study Hours: 120
Level: Intermediate (FHEQ level 5)
Period:
Semester 1
Assessment Summary: EX 100%
Assessment Detail:
  • Examination (EX 100% - Qualifying Mark: 35)
Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Requisites: In taking this module you cannot take ES20070 OR take MN20600 OR take MN20026
Before taking this module you must take MN10311 OR take MN10500 or have relevant work experience.
Learning Outcomes: At the end of this unit 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.

Aims: This unit aims to introduce students to the principal tools of economic analysis used in financial decision making. The unit will provide students with a critical understanding of the key principles of discounted cash flows, theories of asset pricing, valuation of alternative financial instruments, portfolio diversification and methods of valuation.

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.

Programme availability:

MN20502 is a Generally Available Unit which is available to all students of the University (subject to the usual constraints) to take either as a Director of Studies approved option within their programme of study or as an 'extra' unit which does not count towards a final award.

MN20502 is Optional on the following programmes:

Department of Chemistry
  • USCH-AFB03 : BSc(Hons) Chemistry with Management (Year 3)
  • USCH-AAB04 : BSc(Hons) Chemistry with Management with Study year abroad (Year 4)
  • USCH-AKB04 : BSc(Hons) Chemistry with Management with Industrial Placement (Year 4)
  • USCH-AFM07 : MSci(Hons) Chemistry with Management (Year 3)
  • USCH-AKM07 : MSci(Hons) Chemistry with Management with Industrial Placement (Year 4)
Department of Mathematical Sciences
  • USMA-AFB15 : BSc(Hons) Mathematical Sciences (Year 3)
  • USMA-AAB16 : BSc(Hons) Mathematical Sciences with Study year abroad (Year 4)
  • USMA-AKB16 : BSc(Hons) Mathematical Sciences with Year long work placement (Year 4)
  • USMA-AFB05 : BSc(Hons) Statistics (Year 3)
  • USMA-AAB06 : BSc(Hons) Statistics with Study year abroad (Year 4)
  • USMA-AKB06 : BSc(Hons) Statistics with Year long work placement (Year 4)
  • USMA-AFM14 : MMath(Hons) Mathematics (Year 3)
  • USMA-AKM15 : MMath(Hons) Mathematics with Year long work placement (Year 4)
School of Management
  • UMMN-ANB07 : BSc(Hons) Business with Thin sandwich placement(s) (Year 3)
Department of Politics, Languages and International Studies
  • UXXX-AYB05 : BSc(Hons) International Management and Modern Languages (French) with Year Abroad (Year 4)
  • UXXX-AYB04 : BSc(Hons) International Management and Modern Languages (German) with Year Abroad (Year 4)
  • UXXX-AYB06 : BSc(Hons) International Management and Modern Languages (Spanish) with Year Abroad (Year 4)
  • UHPL-AFB10 : BSc(Hons) Politics with Economics (Year 2)
  • UHPL-AAB10 : BSc(Hons) Politics with Economics with Study year abroad (Year 2)
  • UHPL-AKB10 : BSc(Hons) Politics with Economics with Year long work placement (Year 2)

Notes:

  • This unit catalogue is applicable for the 2022/23 academic year only. Students continuing their studies into 2023/24 and beyond should not assume that this unit will be available in future years in the format displayed here for 2022/23.
  • Programmes and units are subject to change in accordance with normal University procedures.
  • Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.
  • Find out more about these and other important University terms and conditions here.