Module Description:

This module focuses on the application of various concepts and practices of financial management within a business organisation. It seeks to develop learners’ analytical and decision-making capabilities pertinent to the evaluation of financial data, interpretation of statements, as well as effective day-to-day and long-term financial resource management. Other aspects include financial performance measurement, budgeting, forecasting, investment evaluation, capital structure analysis, working capital management, and corporate finance. It also looks at corporate financial strategy and the role of financial markets and instruments, including risk management. Students learn through application and case studies how to analyse organisational scenarios and determine their financial health and growth potential so as to participate meaningfully in informed sustainable planning (250 Hours).

Competences:

At the end of the module/unit the learner will have acquired the responsibility and autonomy to:

  • Critical evaluation in analysing financial information and addressing financial issues.
  • Determining actionable strategies based on financial analysis and future predictions.
  • Finesse in verbal and written financial communication through reports and presentations.
  • Competence in budget planning and expenditure control in diverse business situations.
  • Systematic planning for achieving organisational goals in financial objectives.
  • Funding, investing, and resource allocation: a critical evaluation.
  • Flexibility in financial and information technologies relevant to finance.
  • Ethics in financial management: corporate governance issues of compliance and accountable transparency.

Knowledge:

At the end of the module/unit the learner will have been exposed to the following:

  • Define terms ‘finance’ and the ‘financial environment’.
  • Describe and provide practical examples of ‘capital budgeting’ and ‘investment banking’.
  • Recall the need for ‘long-term financing’.
  • List and critically differentiate between various funding sources for organisations, the instruments of sourcing such funds, and markets.
  • Identify and critically discuss the role and functions of a financial manager within an organisation.
  • Recall and critically assess the different types of business structures and the main differences when it comes to sourcing finance for such organisations.
  • Critically describe and differentiate debt and equity as well as the financial assets and markets.

Skills:

At the end of the module/unit the learner will have acquired the following skills:

  • Demonstrate understanding of the functions of the financial department in organisations, as well as the role of the manager.
  • Exhibit understanding of the working capital.
  • Show understanding of the concept of time value of money.
  • Discuss in detail the importance of ethics and ethical considerations in finance management.
  • Use payback period, net present value, and internal rate of return.
  • Use various basic financial vocabulary which is widely used in the finance world.
  • Exhibit enhanced quantitative skills.
  • Use financial information to make informed business decisions.
  • Demonstrate understanding of key ratios used to measure an organisation’s performance including profitability, gearing, efficiency, and investor metrics.

Core Topics and Subtopics :

Basics of Financial Management

  • Why finance matters in organisations
  • Day-to-day financial tasks
  • Using finance for sound choices

Looking at and Planning Money

  • Getting comfortable with financial ratios
  • Spotting trends and comparing figures
  • Setting plans through forecasts and budgets

Money over Time

  • Grasping present and future worth
  • Compounding and discounting in practice
  • Working with annuities and perpetuities

Choosing Projects to Fund

  • Project appraisal using NPV and IRR
  • Calculating and interpreting payback
  • Balancing risk against expected gain

Picking the Right Funding

  • Equity versus debt decisions
  • Figuring the cost of capital
  • Overview of capital structure ideas

Keeping Working Capital Healthy

  • Overseeing cash, receivables, and stock
  • Sources for short-term funding
  • Staying liquid day-to-day

Decisions on Dividends

  • Different kinds of cash payouts
  • Drivers of dividend policy choices
  • Key theories around dividends

Financial Firms and Markets

  • What to know about financial markets
  • Functions of banks and other players
  • Basic rules and compliance needs

Financial Risk Management

  • Spotting money-related risks
  • Ways to limit losses
  • Intro to derivatives as tools

Ethics in a Global World

  • Putting ethics first in finance decisions
  • Keeping money on track when business stretches across borders
  • Tackling the dangers that swing with changing exchange rates

Weekly Breakdown / Session Plan

Week 1: Introduction to Financial Management

  • Objectives: Recognise the purpose, goals, and operations of financial management.
  • Activities: A self-assessment test, a video lecture, and a forum post about practical finance.
  • Key Readings: Atrill, P. & McLaney, E. (2020). Financial Management for Decision Makers, Ch.1.

Week 2: Financial Statements & Ratio Analysis

  • Objectives: Gain knowledge of ratio analysis and financial statement interpretation.
  • Activities: Excel practice, financial statement breakdown task.
  • Key Readings: Brigham, E. & Houston, J. (2019). Fundamentals of Financial Management, Ch. 3 and 4.

Week 3: Time Value of Money

  • Objectives: Compute perpetuities, annuities, and present and future values.
  • Activities: Practice problems and an activity using the TVM calculator.
  • Key Readings: Atrill & McLaney, Financial Management for Decision Makers, Ch. 5.

Week 4: Capital Budgeting Techniques

  • Objectives: Employing payback period computations, internal rates of return, and net present value, capitalise on project value evaluation methodologies.
  • Activities: Group casework and scenario-based enquiries.
  • Key Readings: Brigham & Houston, Fundamentals of Financial Management, Ch. 8.

Week 5: Risk and Return

  • Objectives: Recognise the risk-return trade-off, diversification, and portfolio theory.
  • Activities: Graphing exercises and a forum discussion about business risk.
  • Key Readings: Atrill & McLaney, Financial Management for Decision Makers, Ch. 7; Investopedia articles.

Week 6: Cost of Capital

  • Objectives: Find out how WACC is used when making capital investment decisions.
  • Activities: Peer-reviewed calculation task worksheet.
  • Key Readings: Brigham & Houston, Fundamentals of Financial Management, Ch. 9.

Week 7: Capital Structure Decisions

  • Objectives: Evaluate capital finance types and optimal capital structure theory.
  • Activities: Case study and forum discussions.
  • Key Readings: Atrill & McLaney, Financial Management for Decision Makers, Ch. 9.

Week 8: Dividend Policy

  • Objectives: Explore different dividend policies and their impact on the firm's value.
  • Activities: Dividend decision exercise and discussion post.
  • Key Readings: Brigham & Houston, Fundamentals of Financial Management, Ch. 10.

Week 9: Working Capital Management

  • Objectives: Discover how to manage cash, inventory, receivables, and liquidity.
  • Activities: Exercises in ratio analysis and cash budgeting.
  • Key Readings: Atrill & McLaney, Financial Management for Decision Makers, Ch. 11.

Week 10: Financial Planning & Course Recap

  • Objectives: Integrate all subjects into the process of making strategic financial decisions.
  • Activities: Final task: case analysis or financial plan.
  • Key Readings: All course materials; instructor’s summary guide.

Reading Materials

Primary Textbook

  • Brigham and Ehrhardt (2022). Financial Management (16th ed.). Cengage Learning.
  • Comprehensive papers related to valuation, capital structure, risk management, and principles of finance.
  • Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2022). Fundamentals of Corporate Finance (13th ed.). McGraw-Hill Education.
  • Covers financial analysis, capital budgeting, working capital, and the time value of money.

Supplementary

  • Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of Corporate Finance (13th ed.). McGraw-Hill Education.
  • Focuses on investment choices, contemporary finance, and risk management strategies.
  • Atrill, P., & McLaney, E. (2019). Financial Management for Decision Makers (9th ed.). Pearson.
  • Provides accessible explanations of financial techniques for non-specialist users and managers.

Online Resources

  • Investopedia – https://www.investopedia.com
    Market examples and financial calculators. Up-to-date illustrations of financial markets and tools.
  • Khan Academy: Finance & Capital Markets
    Self-paced modules on the fundamentals of corporate finance, cash flow, and interest rates.
  • Harvard Business Review: Finance Section
    Articles addressing issues of financial strategy, risk, corporate governance, and ethics.