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SBUS41990

Academic Year 2024/2025

Key Financial Decisions (SBUS41990)

Subject:
Business
College:
Business
School:
Business
Level:
4 (Masters)
Credits:
5
Module Coordinator:
Dr John McCallig
Trimester:
Spring
Mode of Delivery:
On Campus
Internship Module:
No
How will I be graded?
Letter grades

Curricular information is subject to change.

This module examines, from a financial perspective, the fundamental question of how shareholder value is increased. The answer that question depends on whether the firm’s Return on Invested Capital (ROIC) exceeds its cost of capital (as identified in Module 2). The module then considers the implications of that finding for the firm’s decisions concerning investment in non-current assets (i.e. discounted cash flow analysis of investment proposals) and in current assets (i.e. investment in and management of working capital).

The topics to be covered include:

• Net present value (NPV)
• Internal rate of return (IRR)
• Incorporation of risk and uncertainty into long- term decision making
• Frameworks of analysis for maximising shareholder value,
• Management of inventory, accounts receivable and accounts payable

About this Module

Learning Outcomes:

On completion of this module, students should be able to:
• The calculations to evaluate whether a new long- term investment project is worthwhile.
• How to actively measure and monitor the long-term strategic success of a company by focusing on “key value drivers”.
• The importance of actively managing a firm’s working capital position and measuring return on investment (ROI) in the context of the short-term assets and liabilities of an organization.

Student Effort Hours:
Student Effort Type Hours
Lectures

16

Specified Learning Activities

60

Autonomous Student Learning

40

Total

116


Approaches to Teaching and Learning:
The module has a detailed study guide. Students are required to complete the module pre-reading or pre-work prior to attending the seminar sessions. The sessions themselves will be a combination of lectures, group discussion, in-class presentations, case study discussions and classroom exercises. A heavy emphasis in the seminars is on teasing out the implications of theory for practical application in a workplace context.

Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 

Assessment Strategy  
Description Timing Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered

Not yet recorded.


Carry forward of passed components
Yes
 

Remediation Type Remediation Timing
In-Module Resit Prior to relevant Programme Exam Board
Please see Student Jargon Buster for more information about remediation types and timing. 

Feedback Strategy/Strategies

• Feedback individually to students, post-assessment

How will my Feedback be Delivered?

Written feedback to be provided within 20 days of assignment deadline.