AF6035 - Financial Management

What will I learn on this module?

The module aims to explore the role of the financial manager. As an accountant you will need to become involved in the wider running of the business and may be a key member of multi-disciplinary teams. You will benefit from an appreciation of the world of finance and an awareness of how financial decisions are made.
You may decide to pursue a career in financial management and if you decide to go on to study professional accounting qualifications then you will be required to study financial management. Successful completion of this module will enable you to claim exemptions to certain professional examination papers.
This module provides an appreciation of the financial management function and environment in which a financial manager operates. You will understand the relationship between risk and return and appreciate the need for financial managers to engage with some risk in order to generate shareholder value. In this module you will explore frameworks that enable financial managers to take risks in a safer way. With the emphasis predominately on publicly listed companies, you will look in depth at how a financial manager makes investment, financing and dividend decisions in order to maximise shareholder wealth. You will examine both interest rate risk and foreign exchange risk and explore ways that the financial manager can use hedging techniques in order to mitigate these foreign exchange risks. You will learn how small and medium sized enterprises and not for profit organisations have different objectives and how this impacts financial decision making. The module is delivered to you using weekly lectures and seminars.

Within this module, you will cover the following 12 topics:

• Introduction to financial management and the financial environment
• Application of discounting techniques for finance
• Investment Appraisal techniques (incorporating tax and inflation)
• The effects of risk and uncertainty on investment decisions
• Specific investment decisions
• Sources of finance and the weighted average cost of capital
• Capital structure
• Portfolio Theory
• Efficient market hypothesis
• Dividend policy
• Working capital management
• Risk Management

On completing the module, you will be able to select and apply the appropriate financial techniques to support financial appraisal and decision making in a variety of situations. This will help in strategic decision making. You will have developed relevant numerical skills to support the theoretical material introduced throughout the module.

How will I learn on this module?

The two one-hour weekly lectures will provide you with a theoretical underpinning of the module content, supported by two one-hour weekly seminars which will give you an opportunity to practice the various financial techniques, allowing you to build up a proficiency in the use of financial techniques and the necessary skills of interpretation and communication. One seminar each week will be focused on an examination level question.

There will be a number of additional exercises housed on the module’s e-learning portal that will permit you to undertake further practice independently. The module has a supporting reading list that provides you with an opportunity to see how the various financial decision making and investment appraisal techniques are applied to enhance shareholder wealth.

Your directed study will support the work you have undertaken in the contact sessions. You will be expected to keep up-to-date with your seminar exercises. In addition, you will be set a selection of exercises to complete in your own time.
Independent learning time is set aside for learning activities, self-identified by you, to gain a deeper and broader knowledge of the subject. You may complete the review exercises, work with the electronic support tools (such as comprehensive and detailed answers to seminar questions and recordings of lectures) and undertake further reading.
The problem-solving nature of the means that tutor (formative) feedback will be received continuously. You will have the opportunity to study how many of the principles studied (for example efficient market hypothesis) are applied in the real world by using the Bloomberg system, housed in the NBS trading room.

How will I be supported academically on this module?

Support will be provided to you by a member of academic staff leading the module and providing the lecture input. A team of academic staff are allocated to seminar groups of about 20 students. This provides a closer, more personal academic support.

Your module is supported by an e-learning portal, which houses lecture materials, seminar exercises and answer files, alongside assessment details and various support facilities such as recordings of certain lectures and access to various online sources relevant to the course.

You will be provided with a wide-ranging electronic reading list that comprises of various academic reports, conference papers and journal articles that showcase the application of various financial techniques presented in the module.

Assessment will be by a three hour closed book exam which will be made up of multiple choice questions to test broader understanding of the module content, and four computational and theoretical questions (compulsory section A, optional 2 from 3 questions in section) covering specific financial techniques studied on the module.

What will I be expected to read on this module?

All modules at Northumbria include a range of reading materials that students are expected to engage with. The reading list for this module can be found at: http://readinglists.northumbria.ac.uk
(Reading List service online guide for academic staff this containing contact details for the Reading List team – http://library.northumbria.ac.uk/readinglists)

What will I be expected to achieve?

Knowledge & Understanding:
• Understand a variety of investment appraisal techniques and their application to the analysis and interpretation of financial problems (MLO1).
• Understand and demonstrate the role of financial techniques as an aid to decision making; through the selection of financial tools and techniques to assist in the solution of financial problems (MLO2).


Intellectual / Professional skills & abilities:
• Evidence skills in the handling of financial data and the corresponding findings of its analysis and modelling for progression to more advanced contexts (MLO3).

How will I be assessed?

Formative Assessment
You will be continuously assessed in formative terms during seminars which will always incorporate pre-work based on preceding week’s lecture material. Your seminar tutor will give you feedback on that preparation.

Summative Assessment
100% of the mark for the module will be derived from a closed book exam (plus 15 mins reading time) which will be made up of two sections. Section A is compulsory and comprises 60% of the mark. Section B requires 2 from 3 questions to be answered and comprises 40% of the mark. (MLO1, MLO2 & MLO3).

Pre-requisite(s)

None

Co-requisite(s)

None

Module abstract

Periods of financial upheaval have taught us a very important lesson: some companies are managed well, others are managed badly. Discerning one from the other is critical to the stability of modern economies. From a financial perspective, the key difference has been in the way managers view the trade-off between risk and return. This module will teach you how to make an informed judgement about which investment projects firms should opt for and which ones they should reject. You’ll be able to critically assess what a sensible level of debt is, and what impact capital structure has on the required rate of return. Having completed this module, you’ll be fully equipped to contribute to the practical problems that financial managers are faced with. You’ll also be in a strong position to engage with academic debate on the theories underpinning the module’s key concepts.

Course info

UCAS Code N405

Credits 20

Level of Study Undergraduate

Mode of Study 3 years full-time or 4 year sandwich

Department Newcastle Business School

Location City Campus, Northumbria University

City Newcastle

Start September 2021 or September 2022

Fee Information

Module Information

All information on this course page is accurate at the time of viewing.

Courses starting in 2021 are offered as a mix of online and face to face teaching due to the ongoing Covid-19 pandemic.

We continue to monitor government and local authority guidance in relation to Covid-19 and we are ready and able to flex accordingly to ensure the health and safety of our students and staff.

Students will be required to attend campus as far as restrictions allow. Contact time will increase as restrictions ease, or decrease, potentially to a full online offer, should restrictions increase.

Our online activity will be delivered through Blackboard Ultra, enabling collaboration, connection and engagement with materials and people.

 

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