| CODE | EMA5103 | ||||||||||||
| TITLE | Financial Management | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 5 | ||||||||||||
| DEPARTMENT | Faculty of Economics, Management and Accountancy | ||||||||||||
| DESCRIPTION | This study-unit will provide a comprehensive understanding of the environment and contexts of corporate finance in organisations, and the key concepts and techniques which are used by contemporary financial managers in making financial decisions. This study-unit will enhance the theoretical, analytic, evaluative decision making skills and capabilities of students related to financial evaluation of sources, organisational investment, financing and dividend policy contexts. Study-unit Aims: This unit aims to prepare students to take decisions fully cognisant of the budgetary, financial, and accounting implications of those decisions. A sound understanding of all financial matters is essential for the leadership and management of any organisation. This study-unit will provide students with a deep and practical understanding of financial planning, accounting protocols and standards, and other financial matters. The study-unit aims at providing participants with a detailed overview of the trends, risks and vulnerabilities, the regulation, context of financial management decisions in real world corporations. This study-unit is designed for students who would like to pursue a career in financial services and in particular in financial departments of mid to large firms. The financial management study-unit provides detailed knowledge together with practical skills in order that students are able to undertake their responsibilities more efficiently and effectively once they embark on their profession. By drawing upon international best practice, it helps prepare individuals to adapt to the modern financial environment. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: a. Discuss the role of financial management, management accounts, balance sheets and key accounting standards in the effective management of an organisation; b. Justify investment decisions for corporations; c. Identify the various financial methods that are used in order to appraise investment decisions; d. Discriminate between debt and equity and the respective advantages and disadvantages of both; e. Distinguish the various financing methods that are available to corporations in order to finance their day-to-day operations as well as long-term growth; f. Explain capital structure and the various theories related to capital structure; g. Appraise fundamental financial management approaches as featuring in academic contributions/literature; h. Relate to the latest trends in financial management research and how empirical research is done in financial management. 2. Skills By the end of the study-unit the student will be able to: a. Assess investment evaluations using all the relevant financial methods; b. Choose investment projects according to financial and non-financial criteria intent on maximising shareholder value; c. Compute the cost of capital/WACC of a company; d. Recommend the optimum financing solution for a company given its current business and financial circumstances; e. Recommend the optimum dividend policy for a firm; f. Analyze financial data for decision making; g. Interpret the financial implications of an enterprise from its accounting records and assess proposed projects and ventures from a financial perspective; h. Analyze the impact of tax considerations into internal financial decision-making; i. Analyze a company’s financial strategy; j. Discuss issues related to public sector financial management. Main Text/s and any supplementary readings: Core texts: - Berk, J. & DeMarzo, P., (2013), Corporate Finance, (3rd edition), Pearson Education ISBN: 9780273792277 Guided reading –Details of what to read and when will be provided in the VLE site. Independent study - to receive high grades you will need to demonstrate your wider reading. The following resources provide useful background reading for the material in this unit. - Asquith, P and Weiss, L.A. (2016), Lessons in Corporate Finance: A Case Studies approach to financial tools, Financial Policies, and Valuation Wiley - Berk, J., DeMarzo, P. and Harford, J., (2014), Fundamentals of Corporate Finance (3rd edition) Pearson - Boakes, K., (2010), Reading and Understanding the Financial Times Updated for 2010-2011, 2nd edition, Financial Times Prentice Hall (e-book) - Brealey, R. A. & Myers, S. C., (2013,) Principles of Corporate Finance, (11th global edition, McGraw-Hill ISBN: 978-0077151560 - McLaney, E., (2014), Business Finance, (10th edition), Pearson - Ross, S. A., Westerfield, R. W., Jaffe, J. F. & Jordan, B. D., (2014), Corporate Finance Core Principles and Applications, International Edition, 4th edition, McGraw-Hill - Vernimmen, P., Quiry, P., Dallocchio, M., Le Fur, Y. & Salvi, A., (2014), Corporate Finance Theory and Practice, 4th edition, John Wiley & Sons Ltd. - Watson, D. and Head, A., (2013), Corporate Finance: Principals and Practice (6th edition) Pearson. |
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| STUDY-UNIT TYPE | Lecture and Independent Study | ||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Bonavent Gauci Lauren Ellul (Co-ord.) Robert M. Suban |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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