MMM041-Business Finance

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Email: j.h.yang@henley.ac.uk

Type of module:

Summary module description:

This module aims to introduce students to the nature of business finance and its role in business decision-making and provide a suitable foundation for advanced study. 

Aims:

By the end of the module students should understand and be able to apply theories relating to capital investment, risk assessment and corporate financing choices. 

Assessable learning outcomes:

By the end of the module it is expected that students will be able to: 

1. Explain the role and essential features of business finance.  


2. Compare and contrast the main sources of finance available to a business and assess their costs and benefits from a management perspective. 


3. Explain the nature and importance of capital investment decision-making, apply various techniques of investment appraisal to a range of investment scenarios and make business recommendations thereon. 


4. Explain the concept of risk, return and diversification in relation to investment and discuss methods proposed for dealing with risk.  


5. Explain and demonstrate how the capital structure of a business impacts on investment decision-making. 


6. Explain and critically evaluate corporate dividend decisions 


7. Discuss the factors which must be taken into account when managing the working capital of a business 

Additional outcomes:

The module also aims to encourage the development of oral communication skills, and the students’ effectiveness in group situations. Structured activities are designed to develop independent learning skills. Students are encouraged to develop additional IT skills by use of relevant web resources and communication techniques, including Blackboard. 

Outline content:

1. The nature of business finance 


2.  Capital investment decision-making 


3.  Sources of finance and capital structure 


4.  Risk and return 


5.  Diversification and portfolio theory 


6.  Cost of capital, capital structure and decision making 


7.  Dividend policy 


8.  Working capital management 

Brief description of teaching and learning methods:

Lectures will be used for the exposition of the major concepts, principles and techniques under consideration. Workshops will focus on student driven application.  

Summative assessment- Examinations:
One 2.5 hour closed book unseen written exam in the Summer term.

Summative assessment- Coursework and in-class tests:

One 1 hour MCQ test in the Autumn term (Week 9)  

One group essay or case study assignment in Spring term (Week 1).The upper word limit for the written assignment is 3,000 words (+/- 10% is allowed). Penalties will be applied to coursework which exceeds the maximum word count.? 

Formative assessment methods:

Formative assessments are available in the text book for all topics.  

In addition questions are available on Blackboard and students will practise questions in workshops. Marking guides and feedback are provided where appropriate so that students can assess their own performance. 

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
A weighted average mark of coursework and examination of 50%.

Reassessment arrangements:

By examination only (one 2.5-hour unseen written paper). Coursework will not be included in the re-assessment.  

Additional Costs (specified where applicable):

Last updated: 8 April 2019