University of Malta

Study-Unit Description
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Apply - Admissions 2016


TITLE Principles of Finance

LEVEL 02 - Years 2, 3 in Modular Undergraduate Course


DEPARTMENT Banking and Finance

DESCRIPTION Course Objective:

This study-unit provides an introduction to the foundations of the main investment areas such as equities, fixed income, foreign exchange and derivatives. The module deals with the theory, analysis and application of the basic theories of investment management. The course also covers the application of these investment vehicles to the general portfolio management concept.

Indicative list of topics to be covered:

- Analysis and use of Financial Statements
- Interest Rates and the time value of money
- Fixed-Income
- Equities
- Investment Risk Analysis
- Foreign Exchange
- Derivatives
- Portfolio Management

Topics covered:

1. The Financial manager and his role in the maximization of shareholders' wealth;
2. Capital Budgeting including project appraisal based on historic cost methods and marginal analysis;
3. Investment Appraisal Techniques including Traditional techniques such as Payback and Accounting Rate of Return; Discounted Cash flow techniques such as IRR and NPV; and Sensitivity Analysis;
4. Sources of Finance ;
5. The Management of Working Capital and its importance to the firm;
6. The Management of Debtors;
7. The Management of Stocks;
8. The Management of Cash .

Reading List:

Basic Textbook:

- Geoffrey Knott - Financial Management (Macmillan Business Masters)

Further Reading:

- J.Cooper - Financial Management (M&E Professional series)
- J.C.Van Horne & J.M. Wachowicz- Fundamentals of Financial Management (Prentice-Hall)
- Werner & Stoner - Modern Financial Managing (Harper Collins)
- M.Kohn - Money, Banking, and Financial Markets.(Harcourt Brace)

*Please note that this study-unit will be followed by second year students from course group 2006/2010 in Semester 1 and third year students from course group 2005/2009 in Semester 2


Assessment Component/s Resit Availability Weighting
Assignment Yes 20%
Examination (2 Hours) Yes 80%

LECTURER/S Steve Ellul

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 study-unit description above applies to the academic year 2017/8, if study-unit is available during this academic year, and may be subject to change in subsequent years.
Semester 1 Time-table 2017/8 - Day Courses
Time-tables for Day Courses for the Academic Year 2017/18 - Semester 1
Semester 1 Time-table 2017/18 - Evening Courses
Time-tables for Evening Courses for the Academic Year 2017/18 - Semester 1
FEMA Day Examination Timetable
Examination time-table for Day Courses - January 2018
FEMA Evening Examination Timetables
Examination time-table for Evening Courses January 2018
JAYE 2017-2018
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