Module Information

Module Identifier
AC33010
Module Title
Financial Strategy
Academic Year
2015/2016
Co-ordinator
Mr Iain McDougall
Semester
Semester 1
Pre-Requisite
MM11420
Other Staff
 

Course Delivery

Delivery Type Delivery length / details
Seminar 11 x 1 Hour Seminars
Lecture 11 x 1 Hour Lectures
Practical 3 x 1 Hour Practicals
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 2 Hours   Unseen written examination  100%
Supplementary Exam 2 Hours   Unseen written examination  Repeat failed element  100%

Learning Outcomes

On successful completion of this module students should be able to:

* Explain the role and nature of financial strategy and its relationship to shareholder value;

* Analyse the formulation of financial strategy for an organisation in relation to its objectives and internal and external constraints;

* Evaluate investment opportunities through the use of appropriate techniques;

* Determine the financial value of a business by reference to a range of valuation methods;

* Evaluate the motives for, and financial implications of, mergers and acquisitions, ownership restructuring and leverage buyouts.

Aims

This module provides an introduction to some of the key principles, practices and analytical approaches involved in financial management today. It focuses on issues encountered by an organisation’s middle to senior managers in setting and managing strategies for corporate finance. This module, continuing on from the first year module Managing Finance, considers the importance of taking a strategic approach to financial issues and the underpinning nature of finance in the business. It considers the wider issues facing financial managers such as business failure, ethical and social issues and current financial theory.

The aims of this module are to introduce students to key concepts in corporate financial management and provide a broad understanding of long term financial strategy. Financial strategy is core to any organisation and involves the management of financial resources to meet organisational goals. This is a complex process involving aspects of financial decision making, investment appraisal and assessing risk and return. Another aspect is the source of funding for projects and this is reviewed from the point of view of the implications for long-term strategic decisions. Successful completion of this module will result in students having gained insights into and approaches to the valuation of businesses and processes for mergers, acquisitions and takeovers.

Brief description

The module is concerned with the role of financial strategy in the investing, financing and resource-allocation decisions within an organisation. It provides a broader understanding of the way in which the appropriate use of financial strategy can add value to the overall corporate strategy used by an organisation. The relevant theories of corporate finance are also addressed.

Content

Introduction to module, and objectives of the organisation.
Investment appraisal methods
Evaluation of investments: steps and techniques
Sources of finance and the cost of capital
Working capital funding strategies
Capital budgeting
Financing decisions and efficient capital markets
Dividends, earnings and share valuation
Mergers and takeovers, ownership restructuring and leveraged buyouts
Business valuations techniques

Module Skills

Skills Type Skills details
Application of Number Students will be presented with a number of [partly] numerical problem exercises throughout the course which they will be expected to work together to solve. This will be assessed through the examination.
Communication Written communication and literature though examination.
Improving own Learning and Performance N/A
Information Technology Students will be presented with a number of [partly] numerical problem exercises throughout the course which they will be expected to work together to solve.
Personal Development and Career planning N/A
Problem solving Students will be presented with a number of [partly] numerical problem exercises throughout the course which they will be expected to work together to solve. This will be assessed through the examination.
Research skills N/A
Subject Specific Skills N/A
Team work Students will be presented with a number of [partly] numerical problem exercises throughout the course which they will be expected to work together to solve. This will be assessed through the examination.

Notes

This module is at CQFW Level 6