AC33010 - FINANCIAL STRATEGY

Module Identifier

AC33010

Module Title

FINANCIAL STRATEGY

Academic Year

2004/2005

Co-ordinator

Ms Yun Zhou

Semester

Semester 1

Mutually Exclusive

This module is not available to A & F students

Course delivery

Lecture

15 Hours

Seminars / Tutorials

4 Hours

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	2 Hours	80%
Semester Assessment	Assessed coursework	20%
Supplementary Exam	2 Hours	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
identify the main elements of investment appraisal
evaluate investment opportunities through the use of appropriate techniques
identify and evaluate the major sources of finance available to an organisation
evaluate the motives for, and financial implications of, mergers and acquisitions, ownership restructuring and leverage buyouts

Aims

The module aims to provide:

an overview of financial strategy and its role to shareholdervalue within the business
a broader understanding and prctical application of investment and financing strategies
a theoretical and practical consideration for mergers and acquisitions and restructuring

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

Main topics:

Introduction: Financial strategy and creating shareholder value
Investment Strategies I: Time value of money and investment appraisal
Investment Strategies II: Evaluation of investments: Steps and technqiues
Financing Strategies I: Financing decisions and efficient capital markets
Financing Strategies II: Sources of finance and costs of capital
Mergers and acquisitions, ownership restructuring and leveraged buyouts

Reading Lists

Books
** Recommended Text
Ross, A S, Westerfield R & W, Jaffe J (2004) Corporate Finance 7th edition. McGraw Hill. (sixth edition 2001)
Brealey, R A and Myers, S C (2002) Principles of Corporate Finance 7th edition. McGraw Hill. (sixth edition 2000)
Bender, R and Ward, K (2002) Corporate Financial Strategy 2nd edition. Butterworth Heinemann, (1st edition 1993)

Notes

This module is at CQFW Level 6