This is an introductory course in finance for non-business and non-accounting students, which provides students with a broad understanding of the principles and practice of Business Finance/Financial Management. The emphasis is on the major financial decisions made by companies and the valuation of investments made by them. The course starts by examining the various forms of businesses and the importance of interest rates. Time value of money, and the linkage between risk and return, lays the foundation for evaluating the price of bonds and stocks. Students will learn and apply principles of capital budgeting (calculating the profitability of various projects and deciding which one to proceed) and capital structure (financing approved projects by issuing shares or bonds, or using retained earnings). The decision to use extra cash to pay dividends or repurchase shares will be analysed and the course concludes with the use of derivatives to protect and enhance the value of firms.
Students intending to take this course should be numerate (good and comfortable with mathematical calculations and formulas) e.g. they should know well compound interest calculations, Sum of Geometric Progression (G.P.) calculation before attending this course.
Programme: BUS
This is an introductory course in finance for non-business and non-accounting students, which provides students with a broad understanding of the principles and practice of Business Finance/Financial Management. The emphasis is on the major financial decisions made by companies and the valuation of investments made by them. The course starts by examining the various forms of businesses and the importance of interest rates. Time value of money, and the linkage between risk and return, lays the foundation for evaluating the price of bonds and stocks. Students will learn and apply principles of capital budgeting (calculating the profitability of various projects and deciding which one to proceed) and capital structure (financing approved projects by issuing shares or bonds, or using retained earnings). The decision to use extra cash to pay dividends or repurchase shares will be analysed and the course concludes with the use of derivatives to protect and enhance the value of firms. Students intending to take this course should be numerate (good and comfortable with mathematical calculations and formulas) e.g. they should know well compound interest calculations, Sum of Geometric Progression (G.P.) calculation before attending this course.