1) Understand the role of financial management in the performance of organisations.

Knowledge & Understanding.


2) Appraise alternative sources of finance for business firms.

Application & Analysis.


3) Analyse the financial position and performance of organisations and apply advanced decision-making techniques in a range of short term and long-term situations and communicate findings.

Application, Communication, Knowledge & Problem Solving, Analysis


4) Analyse the financial position and performance of organisations using key ratios

Application & Analysis

In-class quiz (30 minutes) (MCQs and/or short questions) (30%) (LOs 1,2)
Exam (2 hours) (70%) plus 10 mins reading time (LOs 1, 2, 3 & 4)

You will examine the development of financial strategy within an organisation. This module begins with an introduction to financial objectives and financial management together with issues of ownership and control. The focus of this module is very much real-world with emphasis on the practical application of financial strategy in today’s dynamic business environment.

The module emphasizes the study of investment appraisal evaluation techniques used in practice, including advanced aspects of the use of DCF techniques, consideration of capital rationing and taxation implications. Allowing for inflation and taxation in DCF, adjusting for risk and uncertainty in investment appraisal, and Specific investment decisions (lease or buy, asset replacement, capital rationing).

You will proceed to calculate, analyse and interpret a wide range of financial ratios, including capital gearing and investor ratios. Working capital control and cash management techniques will also be examined. The problems with using accounting information and creative accounting will be considered.

You will learn the range of different sources of long, medium and short-term finance available to businesses, including the various forms of equity finance, borrowings, hybrid finance, retained earnings and government-based assistance. This leads to a consideration of the costs of raising different types of finance, and then to the concept of the weighted average cost of capital and the preferred capital structure. We then introduce how stock markets operate, their trading systems and regulation and the efficient market hypothesis.

The learning strategy for the module requires students to commit 200 learning hours (including assessment) of which there will be 36 hours of tutor-led learning and 164 hours of independent and self-directed study. During the tutor-led learning hours, students will receive robust support through interactive tutorials where they can ask questions, clarify doubts, and receive personalized guidance on challenging concepts. These tutorials are designed to foster a deeper understanding of the material, with opportunities for collaborative learning and discussions that enhance comprehension and retention.


Concepts, theories and principles will be explored, practiced, and demonstrated. Practical skills enhanced by recommended videos and talks. LinkedIn Learning will be used to direct self-study learning throughout the study block. Cognitive and personal skills developed in open-ended problem-solving exercises. Oral feedback will be given during sessions. The assessment will examine the wider learning outcomes expressed in the descriptor.

You will undertake ‘formative’ assessments during the module to help you monitor your learning and provide you and us with ongoing feedback on your progress, that helps you prepare for the ‘summative assessment(s) during or at the end of the module. The formative assessments may include quizzes, short essays, or problem-solving exercises, with feedback given to help students identify areas for improvement.

The use of AI tools such as ChatGPT can be beneficial in learning, however, students must adhere to the following guidelines: (i) all submitted work must be original and written by the student; (ii) if a student utilizes AI tools to generate ideas or receive guidance, this must be clearly cited in the submitted work, just as any other source would be; (iii) students should be mindful of the ethical implications of using AI in their studies, ensuring that their use of such tools does not constitute academic dishonesty.

Unit feedback:
During semester, students’ feedback on the module will be collated and distributed through University's online platform, ensuring consistency with other units and focusing on both improvement and future success. This process includes both individual feedback and cohort-wide summaries, aligning with the university's standardized approach to learning and assessment.

MAIN TEXT:
Watson, D., Head, A., Chan, D. (2023). Corporate Finance: Principles and Practice, 9th edition. Pearson.
Brealey, R., Myers, S., Allen, F., Edmans, A. (2023). Principles of Corporate Finance, 14th ed. McGraw-Hill

ADDITIONAL TEXTS:
McLaney, E. (2014) Business Finance: Theory and Practice. FT Prentice Hall. ISBN 1292016124.
Pike, R. & Neale, B. (2018) Corporate Finance & Investment: Decisions and Strategies, 9th Edition. FT Prentice Hall. ISBN 1292208546
CIMA (2017). F3 Financial Strategy: Study text paperback. CIMA. ISBN 1509715835.

Module Study Guide and Handbook
BUV Learning Resources Centre and website
BUV Canvas; Learning Management System
SU VLE
SU Library