FIN10670 Introduction to Finance

Academic Year 2022/2023

Finance plays an important role in the overall health of the economy. Both businesses and individuals are confronted with financing and investing decisions on a regular basis. For example, firms must decide what investments to make and how these investments should be financed. This subject is an introduction to modern finance. Topics include real and financial asset valuation, capital investment decisions, the Capital Asset Pricing Model, Arbitrage Pricing Theory, dividend policy, and the role of ethics in finance.

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Curricular information is subject to change

Learning Outcomes:

Upon completion of this module, students should have a good understanding of how firms work, the important role of corporate governance, why companies and individuals make the investment decisions that they do, and the role of ethics in finance. Students should also be able to value stocks and bonds, apply capital budgeting techniques in order to identify profitable investment projects, and understand the relationship between risk and return.

Indicative Module Content:

Topics Covered:
1. Introduction to Finance
2. Corporate Governance and Introduction to Agency Theory
3. Financial Statement Analysis
4. Discounted Cash Flow Valuation
5. Bond Valuation/Bond Markets
6. Equity Valuation/Equity Markets
7. Net Present Value and Other Investment Rules
8. Making Capital Investment Decisions
9. Risk Analysis, Real Options and Capital Budgeting
10. Risk, Return and CAPM
11. Factor Models and Arbitrage Pricing Theory
12. Agency Theory and Dividends

Student Effort Hours: 
Student Effort Type Hours
Lectures

24
Tutorial

10
Autonomous Student Learning

76
Total

110
Approaches to Teaching and Learning:
Lectures and tutorials will be held once a week and students will get to apply theories learned in the module on a real-life company. A company report and a video presentation will be required toward the end of the semester, on top of a mid-term test and an end of semester exam. 
Requirements, Exclusions and Recommendations
Learning Recommendations:

There are no qualifying requirements , but a knowledge of statistics is expected


Module Requisites and Incompatibles
Incompatibles:
ECON20190 - Introduction to Financial Econ, FIN20010 - Principles of Finance, FIN20040 - Foundations of Finance


 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Examination: There are two sections in the final exam. Section A consists of multiple choice questions. In Section B, answer two out of three questions. 2 hour End of Trimester Exam No Alternative linear conversion grade scale 40% No

35
Continuous Assessment: Multiple Choice/Short Answer Question test will be given in Week 8. Week 8 n/a Alternative linear conversion grade scale 40% No

25
Group Project: Group Company Report Coursework (End of Trimester) n/a Alternative linear conversion grade scale 40% No

40

Carry forward of passed components
No
 
Resit In Terminal Exam
Spring Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Group/class feedback, post-assessment
• Peer review activities

How will my Feedback be Delivered?

Group feedback will be provided within 20 days of the project's deadline. Every student will be required to write a one-page learning journey to be submitted separately.

Corporate Finance by Hillier, Ross, Westerfield & Jordan, 3rd European Edition (ISBN: 9780077173630)
Name Role
Dr Tiffany Thng Lecturer / Co-Lecturer
Lanxin Lu Tutor
Ronald Wafula Tutor