This module aims:
to introduce the students to finance.
to provide a firm foundation for the students to build on later on in the second and third years of their programmes, by covering basic logical and rational analytical tools that underpin financial decisions  

(LO1) Students will be able to identify and explain the goals and governance of the firm, how financial markets work and appreciate the importance of finance

(LO2) Students will be able to apply the time value of money to calculations to determine present values and future values for series of cash flows, including annuities

(LO3) Students will be able to identify, calculate and explain the determinants of equity and bond returns and will be able to calculate fundamental valuations for ex-div and cum-div equities and bonds

(LO4) Students will be able to apply various investment appraisal techniques with respect to investment decisions

(LO5) Students will be able to calculate working capital cycle, recommend ways to improve working capital management and explain the benefit of this to a company’s cost of capital

(LO6) Students will be able to explain the relationship between risk, return and the opportunity cost of capital, including portfolio theory to mitigate unsystematic risk and use CAPM to estimate and explain costs of capital, including weighted average costs of capital including the effect of tax shield on debt

(LO7) Students will be able to identify and explain the difference between call, put, European, American options, and calculate and explain the intrinsic value of an option

(S1) Problem solving skills

(S2) Numeracy

(S3) Commercial awareness

(S4) Teamwork

(S5) Organisational skills

(S6) Communication skills

(S7) IT skills

(S8) International awareness

(S9) Lifelong learning skills

(S10) Ethical awareness

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: Yes

Teaching Method - Seminar
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Self-Directed Learning Hours: 120
Description: These independent learning hours are aimed at supporting the directed student learning. The module leader will provide guidance in the form of suggested readings and topics to examine with the expectation that students are well prepared to contribute to the tutorial activities and to understand the content of learning materials. Self-Directed Learning will include research activity, developing academic writing skills, and wider reading to support the module

This module is a pre-requisite for the following modules:
ACFI204, ACFI205, ACFI213, ACFI290, ACFI320, and ECON233

Skills/Other Attributes Mapping

Skills / attributes: Ethical awareness
How this is developed: Examples in the lectures include sustainabil ity and ethical issues; lectures include a session on ethics including trans-cultural ethics and trans-national investment decisions where ethical norms may differ from those the student is familiar with.
Mode of assessment (if applicable): Written Unseen Examination

Skills / attributes: Lifelong learning skills
How this is developed: Students are made aware on how to apply the knowledge in the future. Lectures will include suggested references to articles on current events, thus encouraging students to see the nexus between the technical knowledge and current issues, eg IPO flotation and values of companies in the news.
Mode of assessment (if applicable): No formal assessment

Skills / attributes: International awareness
How this is developed: International examples and terminology used in all lectures alongside UK examples and terminology. Lectures include a session on ethics including trans-cultural ethics and trans-national investment decisions where ethi cal norms may differ from those the student is familiar with.
Mode of assessment (if applicable): Written Unseen Examination

Skills / attributes: IT skills
How this is developed: Lectures and seminars will demonstrate use of relevant functions of commonly used software, eg Excel =NPV, =IRR functions. These are not within the scope of the exam, but students should be familiar with them. Excel spreadsheets uploaded to Canvas to encourage students to “play” with them as a learning tool, eg spreadsheets that allow students to input different data and see the inverse relationship between interest rates and bond market values.
Mode of assessment (if applicable): No formal assessment

Skills / attributes: Communication skills
How this is developed: Through presentation of answers in the exam. Seminars include example of short-form questions and how to write concise answers. Section on the revision lecture to include examples of well written and poorly written answers with commentary on what makes the difference between the two.
Mode of assessment (if applicable): Written Unseen Examination

Skills / attributes: Organisational skills
How this is developed: Students are required to prepare seminar questions prior to the seminar session. Mid-term mock requires organisation of learning to not leave it to the last minute.
Mode of assessment (if applicable): No formal assessment

Skills / attributes: Teamwork
How this is developed: Occasional answering exercises as teams in seminars. Occasional use of pauses in lecture examples to ask students to work an answer and compare with a neighbour to identify differences in their answers and reasons. Canvas facility to find study buddies and form study groups to prepare materials for the seminars and/or work through sample and mock exams.
Mode of assessment (if applicable): No formal assessment.

Skills / attributes: Commercial awareness
How this is deve loped: Most lectures include commercial content and context. Lectures will include suggested references to articles on current events, thus encouraging students to see the nexus between the technical knowledge and current commercial issues, eg IPO flotation and values of companies in the news.
Mode of assessment (if applicable): Written Unseen Examination

Skills / attributes: Numeracy
How this is developed: Most lectures and workshops. First lectures assume students have modest GCSE standard mathematics only and slowly build up the numerical understanding.
Mode of assessment (if applicable): Written Unseen Examination

Skills / attributes: Problem solving skills
How this is developed: Most lectures and workshops.
Mode of assessment (if applicable): Written Unseen Examination

Introduction
Goals and governance of the firm / Financial markets and institutions
Time value of money
Valuing bonds
Valuing stocks
Net present value and other investment criteria
Introduction to risk, return and capital budgeting
Cost of capital
Working capital management
Options