Financial Economics for Business | Abertay University

Financial Economics for Business

Description

This module will provide an introduction to the fundamentals of business and economics, along with providing the link between intertemporal choice and modern Finance.

Aims

The aim of this module is to provide students with an understanding of the introductory areas of economics and business, along with providing a practical application to applied finance.

Learning Outcomes

By the end of this module the student should be able to:

1.  Demonstrate an understanding of the theories of the firm and the key business objectives;

2.  Comprehend a practical understanding of intertemporal choice and applied finance;

3.  Introduction to equities and bonds, and portfolio theory;

4.  Demonstrate an understanding of the influence of supply and demand conditions on prices.

Indicative Content

1 Economics

Economics-what is it? Supply and Demand and Market Structure.

2 Business Element

Introduction to business. Social responsibility.

3 Introduction to Financial Management

In these lectures, we will define finance and discuss its different subareas. After having an overall picture of the field of finance, we will discuss important variables in the business environment that can have a significant impact on the firm’s financial decisions.

4 Time Value of Money

In these lectures, we will study the time value of money (TVM). We will illustrate why money has a higher value today than in the future. We will also develop a set of tools that we will use throughout the rest of the module. We will start analysing single cash flows and then we will move onto annuity cash flows.

5 Bond Valuation

In these lectures, we will learn what bonds are, how to price them and why they are important to the firm.

6 Stock Valuation

In these lectures, we will learn what stocks are, how to price them and why they are important to the firm. In addition, we will look at the main stock markets in the world.

7 Risk and Return

In these lectures, we will introduce portfolio theory by learning how to characterise and estimate risk and return.

Statement on Teaching, Learning and Assessment

Teaching and Learning Work Loads

Total 200
Lecture 28
Tutorial/Seminar 10
Supervised Practical Activity 0
Unsupervised Practical Activity 0
Assessment 50
Independent 112



Guidance notes

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.


Disclaimer

We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2018/19 , and may be subject to change for future years.