Introductory description

The aim of this module is to provide broad guidance to answer two key questions:

1. Do I want to do this project; and
2. How will I pay for this project?
   It concerns decision making and the financial implications of decisions from the extreme short term to the very long term. The module IS NOT designed to turn participants into corporate financiers but to enable them to understand some key concepts.
   In business you need to understand the remit of your finance team; and that remit is not to tell you how to spend your money, but to ensure you have the funding you require to do the projects your company should be doing. In the alternative it should be telling you the financial constraints within which you have to work. The Finance team can give you data to aid your decisions, but your role is to make the decision. This course will aid you with that key skill, and explain to you how your finance team will frame its advice, and the concepts it uses to find the funds for you to do your projects.
   Specific parts of the module also deal with introductory concepts concerning company valuation, capital markets (stock exchanges), mergers and acquisitions (including a simulation) and corporate solvency

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

An appreciation of corporate finance, and its links to operations within a business.
Understanding the types of cost and how they are relevant, or not, to an appraisal, including the sunk cost fallacy.
Investment Decision calculations from complex data sets
Framing of decisions and the effective use of quantitative and qualitative data in financial decision making
Non-financial matters.
Risk – mitigations, identification, classification
Business case derivation, presentation and challenge
The cost of financing, its sources and the interaction with ‘The City’
An appreciation of current affairs
An examination of why company controls fail
Methods of valuing a business
Mergers and Acquisitions

Learning outcomes

By the end of the module, students should be able to:

• Selecting and justifying a project from different options via financial evaluation, calculation and appraisal.
• Evaluate and compare the risk/reward balance for different companies
• Critically appraising a business’ sources of, and use of funds
• Examining the importance of broader issues in financial strategy, including non-financial considerations and secondary effects

Indicative reading list

Atrill, P & McLaney, E (2011). Accounting and Finance for Non-specialists. London: Pearson Education Limited.
Dyson, J.R. (2010). Accounting for Non-accounting Students. London: FT Prentice Hall
Berk, J. & DeMarzo, P., 2016. Corporate Finance. Fourth ed. Boston, MA: Pearson Education, Inc.
Bender, R. 2014 Corporate Financial Strategy. Fourth ed. Abingdon: Routledge
Bowhill, B. (2008). Business Planning and Control. Chichester, UK: John Wiley and Sons Limited.
Goldenberg, D (2016) Derivatives Markets, New York, USA, Routledge
Harrington, SE and Niehaus GR, (2003) Risk Management and Insurance New York, NY, USA McGraw-Hill
Campbell, H.F, Brown P.C. (2016) Cost-Benefit Analysis Second Ed. Oxford, UK, Routledge
Goel, S (2015) Capital Budgeting First Edition, New York, New York (222 East 46th Street, New York, NY 10017) : Business Expert Press
Spicer, A (2016) Business Bullshit First Edition, new York, NY: Routledge
Dayananda, D et al (2002) Capital budgeting : financial appraisal of investment projects Cambridge : Cambridge University Press

View reading list on Talis Aspire

Subject specific skills

Critical thinking, Problem solving, Teamwork and working effectively with others, Information literacy (research skills), Ethical values, Organisational awareness

Transferable skills

Critical thinking, Problem solving, Teamwork and working effectively with others, Information literacy (research skills), Ethical values, Organisational awareness