Bangor University Transfer Abroad Undergraduate Programme Module Implementation Plan MODULE: ACF-103 FUNDAMENTALS OF FINANCIAL MANAGEMENT LECTURER: Murray Smart INTAKE: 2016 SEMESTER: 4 ACTIVITY TYPES: Lecture, presentation, quiz, exam, workshop Start Date: May 21, 2018 End Date: June 08, 2018 Year Semester Academic weeks Module Code Module Name Credits Lecture hrs/week HAUT Tutorial Hrs/week Weeks II Spring Week 12 ~ 14 2015/05/21~2015/06/08 ACF-103 Fundamentals of Financial Management 10 Mon-Fri 0830-1130 Mon-Fri 1430-1530 3 Course Detail: This course introduces students to the fundamentals of financial management. Broadly the course consists of three major topics: the principals of financial mathematics (time value of money) and valuation, capital expenditure decisions and capital structure. The concepts of TVM apply across the whole course. Business finance environment: Role of financial management, Financial goals of a firm: stakeholder demands and agency theory types of business structure. Mathematics of finance: Time value of money – present and future values – mixed stream cash flows and annuities; Valuation of stocks and bonds Management of working capital: Cash, marketable securities, accounts receivable, inventory, short-term financing Accounting for risk: Expected returns, standard deviation, coefficient of variance, probability distributions Capital expenditure decisions: Techniques – NPV, IRR, Payback, Profitability index; expansion or replacement projects, unequal lives, capital rationing Required rate of return and cost of capital: Weighted average cost of capital – debt, preference shares common equity; CAPM, dividend growth model Capital structure: Leverage – operating, financial, total; EBIT-EPS and breakeven analysis, finance mix, optimal capital structure, Modigliani & Miller theory Assessment: 2-hour examination at end of course Assessment Date Value
( Variable based on individual module ) Class Participation N/A Attendance N/A Quiz I Friday 25 May 5% Quiz II Thursday 31 May 5% Quiz III Wednesday 6 June 5% Individual Assignment N/A Group Paper N/A Final Exam 08 June 2018 85% Paper Assignment (if any) Week Activity Type Scheduled Contact Hours Activity Details Core Reading + Additional Reading + Practice Material Learning Outcomes Student Preparation for Tutorial Week 01 Monday May 21 Lecture 3.0hr Define financial management; goal of the firm; business and financial environment. Identify the components of financial statements and key data applicable to financial management Van Horne Chs 1&2 Van Horne Chs 6&7 Understand the role of finance in the business and financial environment. Understand the relevance of financial statements to financial management Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 1 Tuesday May 22 Lecture 3.0hr Present and future values of single sums, mixed cash flows and annuities Van Horne Ch 3 Understand and apply the Mathematics of finance - Time value of Money Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 2-3 Hand in tutorial 1 homework
Wednesday May 23 Lecture 3.0hr Present and future values of single sums, mixed cash flows and annuities Van Horne Ch 3 Understand and apply the Mathematics of finance - Time value of Money Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 2-3 Thursday May 24 Lecture 3.0hr Applying principles of TVM to the valuation of bonds and stocks, working capital management, capital expenditure decisions, cost of capital and capital structure Van Horne Ch 4 Apply mathematics of finance to the various components of financial management Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 4 Hand in tutorial 2-3 homework Friday May 25 Lecture 3.0hr Quiz week 1 - Chs 1-4, 6, 7 Define risk and return, application of probability distributions, expected return, standard deviation, coefficient of variance Quiz week 1 - Van Horne Ch 5 Revision Understand the concepts of risk and return Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Revision Week 02 Monday May 28 Lecture 3.0hr Management of working capital – cash, marketable securities, accounts receivable, inventory, short-term financing Van Horne Chs 8-11 2 Handouts Understand the concepts of management of working capital and short-term financing Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 5 Hand in tutorial 4 homework
Monday June 04 Lecture 3.0hr Identifying required rates of return and calculation of costs of capital – dividend growth model, CAPM – for debt, and equity; WACC Van Horne Ch 15 Understand the concept of cost of capital and required returns for a firm Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 9 Hand in tutorial 8 homework Tuesday June 05 Lecture 3.0hr Operating, financial and total leverage; EBIT-EPS & breakeven analysis; optimal capital structure and Modigliani & Miller relationships Van Horne Ch 16 & 17 Understand and analyse the impact of leverage on the capital structure of a firm Read chapter(s), study power point files; attempt tutorial problems Tutorial 1hr Tutorial 10 Hand in tutorial 9 homework Wednesday June 06 Lecture 3.0hr Quiz Week 3 – Chs 12, 13, 15-17 Exam revision Quiz Week 3 - Revision Exam revision Revise tutorial problems Tutorial 1hr Exam revision Hand in tutorial 10 homework Thursday June 07 Lecture 3.0hr Exam revision Exam revision Revise tutorial problems Tutorial 1hr Exam revision