Bangor University

Transfer Abroad Undergraduate Programme

Module Implementation Plan

MODULE: / ACF-103
FUNDAMENTALS OF FINANCIAL MANAGEMENT / LECTURER: / Murray Smart
INTAKE: / 20145 / SEMESTER: / 4
ACTIVITY TYPES: / Lecture, presentation, quiz, exam, workshop

Start Date: May 16, 2016

End Date: June 04, 2016

Year / Semester / Academic weeks / Module Code / Module Name / Credits / Lecture hrs/week / HAUT Tutorial Hrs/week / Weeks
II / Spring / Week 12 ~ 14
2015/05/08~2015/05/26 / ACF-103 / Fundamentals of Financial Management / 10 / Mon-Fri
0830-1130 / Mon-Fri
1430-1530
/ 3

Course Detail: This course introduces students to the fundamentals of financial management. Broadly the course consists of three major topics: the principals of financial mathematics (time value of money) and valuation, capital expenditure decisions and capital structure.

The concepts of TVM apply across the whole course.

Business finance environment: Role of financial management, Financial goals of a firm: stakeholder demands and agency theory types of business structure.

Mathematics of finance: Time value of money – present and future values – mixed stream cash flows and annuities; Valuation of stocks and bonds

Management of working capital: Cash, marketable securities, accounts receivable, inventory, short-term financing

Accounting for risk: Expected returns, standard deviation, coefficient of variance, probability distributions

Capital expenditure decisions: Techniques – NPV, IRR, Payback, Profitability index; expansion or replacement projects, unequal lives, capital rationing

Required rate of return and cost of capital: Weighted average cost of capital – debt, preference shares common equity; CAPM, dividend growth model

Capital structure: Leverage – operating, financial, total; EBIT-EPS and breakeven analysis, finance mix, optimal capital structure, Modigliani & Miller theory

Assessment: 2-hour examination at end of course

Assessment
( Variable based on individual module ) / Date / Value
Class Participation / Tutorial Homework / 10%
Attendance / N/A
Quiz I / N/A
Quiz II / N/A
Individual Assignment / N/A
Group Paper / N/A
Final Exam / 02 June 2016 / 90%

Paper Assignment (if any)

Week / Activity Type / Scheduled Contact Hours / Activity Details / Core Reading + Additional Reading + Practice Material / Learning Outcomes / Student Preparation for Tutorial
Week 01
Monday
May 08 / Lecture / 3.0hr / Define financial management; goal of the firm; business and financial environment.
Identify the components of financial statements and key data applicable to financial management / Van Horne Chs 1&2
Van Horne Chs 6&7 / Understand the role of finance in the business and financial environment.
Understand the relevance of financial statements to financial management / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 1
Tuesday
May 09 / Lecture / 3.0hr / Present and future values of single sums, mixed cash flows and annuities / Van Horne Ch 3 / Understand and apply the Mathematics of finance - Time value of Money / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 2-3
Hand in tutorial 1 homework
Wednesday
May 10 / Lecture / 3.0hr / Present and future values of single sums, mixed cash flows and annuities / Van Horne Ch 3 / Understand and apply the Mathematics of finance - Time value of Money / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 2-3
Thursday
May 11 / Lecture / 3.0hr / Applying principles of TVM to the valuation of bonds and stocks, working capital management, capital expenditure decisions, cost of capital and capital structure / Van Horne Ch 4 / Apply mathematics of finance to the various components of financial management / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 4
Hand in tutorial 2-3 homework
Friday
May 12 / Lecture / 3.0hr / Define risk and return, application of probability distributions, expected return, standard deviation, coefficient of variance / Van Horne Ch 5
Quiz week 1 - Revision / Understand the concepts of risk and return / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Quiz week 1 - Revision
Week 02
Monday
May 15 / Lecture / 3.0hr / Management of working capital – cash, marketable securities, accounts receivable, inventory, short-term financing / Van Horne Chs 8-11
2 Handouts / Understand the concepts of management of working capital and short-term financing / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 5
Hand in tutorial 4 homework
Tuesday
May 16 / Lecture / 3.0hr / Management of working capital – cash, marketable securities, accounts receivable, inventory, short-term financing / Van Horne Chs 8-11
2 Handouts / Understand the concepts of management of working capital and short-term financing / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 6
Hand in tutorial 5 homework
Wednesday
May 17 / Lecture / 3.0hr / Objectives of capital budgeting, the process and identification of relevant cash flows / Van Horne Chs 12 & 13 / Acquire and apply skills in capital budgeting concepts and methods used. / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 7
Hand in tutorial 6 homework
Thursday
May 18 / Lecture / 3.0hr / Application of capital budgeting techniques – payback, NPV, IRR, profitability index; capital rationing / Van Horne Chs 12 & 13 / Acquire and apply skills in capital budgeting concepts and methods used. / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 8
Hand in tutorial 7 homework
Friday
May19 / Lecture / 3.0hr / Application of capital budgeting techniques – payback, NPV, IRR, profitability index; capital rationing / Van Horne Chs 12 & 13
Quiz week 2 - Revision / Acquire and apply skills in capital budgeting concepts and methods used. / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Quiz week 2 - Revision
Week 03
Monday
May 22 / Lecture / 3.0hr / Identifying required rates of return and calculation of costs of capital – dividend growth model, CAPM – for debt, and equity; WACC / Van Horne Ch 15 / Understand the concept of cost of capital and required returns for a firm / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 9
Hand in tutorial 8 homework
Tuesday
May 23 / Lecture / 3.0hr / Operating, financial and total leverage; EBIT-EPS & breakeven analysis; optimal capital structure and Modigliani & Miller relationships / Van Horne Ch 16 & 17 / Understand and analyse the impact of leverage on the capital structure of a firm / Read chapter(s), study power point files; attempt tutorial problems
Tutorial / 1hr / Tutorial 10
Hand in tutorial 9 homework
Wednesday
May 24 / Lecture / 3.0hr / Quiz Week 3 – Revision
Exam revision / Quiz Week 3 - Revision
Exam revision / Revise tutorial problems
Tutorial / 1hr / Exam revision
Hand in tutorial 10 homework
Thursday
May 25 / Lecture / 3.0hr / Exam revision / Exam revision / Revise tutorial problems
Tutorial / 1hr / Exam revision
Friday
May 26 / Final Exam