2014/15 Undergraduate Module Catalogue

LUBS1035 Foundations of Finance

20 creditsClass Size: 200

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

Taught: Semesters 1 & 2 (Sep to Jun) View Timetable

Year running 2014/15

Pre-requisite qualifications

LUBS1035 is a pre-requisite for the study of LUBS2205

LUBS1035 is a partial pre-requisite for the study of LUBS3150

This module is approved as a discovery module

Module summary

Foundations in Finance is an introductory level module providing a foundation for the more specialist finance modules in levels 2 and 3.

Objectives

The aims of the module are as follows:
- To introduce the key principles of Corporate Finance with a particular emphasis on risk and the time value of money;
- To provide students with a solid grounding in business finance and financial markets; and
- To provide students with the foundations on which to build their knowledge and understanding at level 2.

Learning outcomes
On completion of the module students will be able to:
- Demonstrate an understanding of the key principles of corporate finance;
- Demonstrate an understanding of the time value of money and calculate interest rates and discount factors;
- Apply these techniques to value bonds and equities.

Skills outcomes
On completion of this module students will be able to:
- Demonstrate problem solving, analytical and quantitative skills by applying current theory and appropriate analytical tools to simple financial problems;
- Demonstrate written communication and critical thinking skills in the written parts of the summative assessment; and
- Demonstrate numeracy skills by applying core mathematical and statistical skills to answer a range of class questions

Syllabus

Indicative Content:
- Introduction to Finance
- Financial analysis and planning
- Nominal interest rates, simple and continuously compounding interest, yield
- Cash flow valuation: the time value of money and discounted cash flow
- Annuities and perpetuities
- Bond and equity valuation
- Capital budgeting: NPV, investment appraisal techniques and project analysis and evaluation
- Capital structure: cost of capital, sources of finance, debt
- International corporate finance
- Financial risk management

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	20	1.50	30.00
Seminar	10	1.00	10.00
Independent online learning hours			20.00
Private study hours			140.00
Total Contact hours			40.00
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 type	Notes	% of formal assessment
Report	.	30.00
Total percentage (Assessment Coursework)		30.00

Resit by 3 hour written examination

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	1 hr 00 mins	20.00
Standard exam (closed essays, MCQs etc)	2 hr 00 mins	50.00
Total percentage (Assessment Exams)		70.00

Resit by 3 hour written examination

Reading list

The reading list is available from the Library website

Last updated: 25/02/2015

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