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2018/19 Undergraduate Module Catalogue

LUBS1035 Foundations of Finance

20 creditsClass Size: 250

Module manager: John Smith
Email: j.e.smith@lubs.leeds.ac.uk

Taught: Semesters 1 & 2 View Timetable

Year running 2018/19

This module is mutually exclusive with

LUBS2035Finance for Small Business
MATH1510Financial Mathematics 1

This module is approved as a discovery module

Module summary

Foundations of Finance is an introductory level module intended to provide a thorough grounding in the basic concepts of corporate finance as a foundation on which you can then build knowledge of finance and the financial markets in the more advanced finance modules in levels 2 and 3. The module relates theory to current business practice and requires you to be able to confidently use and manipulate financial formulas and numerical data.

Objectives

This module aims to provide students with a thorough grounding in and knowledge of the basic concepts of corporate finance. It aims to provide basic knowledge of the use of corporate finance in business and the financial markets and the skills to apply that knowledge to explore a topical issue in corporate finance. It also introduces the key theoretical principles of corporate finance.

Learning outcomes
Upon completion of this module students will be able to:
- Identify key concepts of the time value of money and risk to apply discounted cash flow techniques to value bonds and equities and evaluate investment opportunities
- Outline relevant contemporary theories and the supporting empirical research evidence in corporate finance
- Outline some the mainstream and alternative technical languages and practical uses of corporate finance in companies and the financial markets
- Explain some of the professional and ethical challenges for current financial practitioners and regulators

Skills outcomes
Upon completion of this module students will be able to:
Transferable
- Locate, extract, analyse and critically evaluate information and data from multiple sources
- Structure and communicate quantitative and qualitative information, analysis and commentary in the form of a professional quality report

Subject Specific
- Apply current theory and appropriate analytical tools to solve simple financial problems
- Apply core mathematical and statistical skills to address a range of financial problems


Syllabus

Indicative content
The syllabus provides a basic insight into the concepts and theories underpinning corporate finance as an academic discipline and indicative content includes: time value of money and discounted cash flow techniques, bond and equity valuation, techniques for making capital investment decisions, project analysis and evaluation, an introduction to the relationship between risk and return and the famous Capital Asset Pricing Model, cost of capital, short-term capital management, and an introduction to financial risk management. The coursework will provide an opportunity to examine a topical and contentious issue in finance.

Teaching methods

Delivery typeNumberLength hoursStudent hours
Lecture201.5030.00
Seminar101.0010.00
Independent online learning hours20.00
Private study hours140.00
Total Contact hours40.00
Total hours (100hr per 10 credits)200.00

Private study

Students are required to undertake specified pre-reading and question preparation in advance of the classes based on the material introduced in the lectures. This includes some online pre-reading and formative questions. Students are also required to conduct substantial independent research on an area of current academic debate.

Opportunities for Formative Feedback

- Students will be able to monitor their progress through fortnightly seminars. Model answers and answers and marking schemes for workshop and past examination papers against which students can assess their own performance;
- Feedback is provided half way through the course in form of an hour long closed book MCQ exam.

Methods of assessment


Coursework
Assessment typeNotes% of formal assessment
Report.30.00
Total percentage (Assessment Coursework)30.00

The resit for this module will be 100% by 3 hour examination.


Exams
Exam typeExam duration% of formal assessment
Standard exam (closed essays, MCQs etc)1 hr 00 mins20.00
Standard exam (closed essays, MCQs etc)2 hr 00 mins50.00
Total percentage (Assessment Exams)70.00

The resit for this module will be 100% by 3 hour examination.

Reading list

The reading list is available from the Library website

Last updated: 12/12/2018 10:48:53

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