Advanced Financial Management

Description

This module comprises 3 parts: corporate finance, equity investment and ethics and professional standards. The module enables students to explore the principles and theories of the subject area and its international applications.

Aims

The aim of this module is to provide the students with advanced knowledge and understanding of the essential components of modern corporate finance and equity investment and ethical and professional standards.

Learning Outcomes

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

1.  Critically understand the principles and underlying theories of corporate finance and equity investments.

2.  Demonstrate familiarity with the recent developments in corporate finance and equity investments.

3.  Critically evaluate the validity and applicability of different theories of corporate finance and equity investments.

4.  Demonstrate familiarity with the code of ethics, and standards of professional practices.

Indicative Content

1 Capital Budgeting

Investment appraisal methods, strengths and weaknesses of these methods, cash flow projections, project analysis and evaluation, sensitivity analysis.

2 Capital Structure

MM propositions without taxes and with taxes, agency theory and agency costs, pecking order theory, trade-off theory, market timing theory etc., practical issues in capital structure policy.

3 Working Capital Management

Inventories management, accounts receivable management, accounts payable management, cash management, treasury management, working capital funding strategies.

4 Corporate Governance

Definitions, agency theory, conflict between managers and shareholders, conflict between majority shareholders and minority shareholders, a variety of governance mechanisms, such as ownership structure, board of directors, executive compensation, corporate control market, and shareholder activism etc., corporate governance codes around the world.

5 Portfolio Management and Cost of Capital

Capital allocation line (CAL), capital market line (CML), security market line (SML), the beta coefficient, the market risk premium, and the Sharpe ratio, WACC, CAPM, APT, Fama & French three-factor model etc.

6 Market Efficiency and Equity Valuation

Weak market efficiency, semi-strong market efficiency, strong market efficiency, behavioural finance, discounted dividend valuation, free cash flow valuation, market-based valuation, residual income valuation, private company valuation, applications and processes of equity valuation.

7 Ethics and Professional Conduct

Components of the Code of Ethics and Standards of Professional Conduct, responsibilities required by the Code and Standards, practices and procedure designed to prevent violations of the Code of Ethics and Standards of Professional Conduct, CFA research objectivity standards.

Statement on Teaching, Learning and Assessment

Class contact will combine one lecture and one tutorial each week. The lectures will provide key input on concepts and contexts and provide recommended reading while the weekly tutorials will involve problem-solving exercises. This is reflected in the learning workload below allocated to independent learning.

Teaching and Learning Work Loads

Total 200
Lecture 28
Tutorial/Seminar 10
Supervised Practical Activity 0
Unsupervised Practical Activity 0
Assessment 60
Independent 102



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 2019/10 , and may be subject to change for future years.