BU6006 - Strategic Finance and Accounting

BU6006

Strategic Finance and Accounting

6

20 CC   10 ECTS

Queen's Park Campus (Chester), University College Isle of Man

BU4002, BU5016 (or equivalent)

Workshops 44 hours
Independent study 156 hours

Notional student learning: 200 hours of which 44 hours will be tutor contact

 

Scheduled hours Placement Hours Independent Guided study
44 0 156

It is expected of students that they will attend all timetabled sessions, appointments and arranged activities. 

Students will be expected to have studied some finance and accounting prior to undertaking this module (for example, module BU4002, BU5016 or equivalent).

  • Financial management function – the nature and purpose of financial management / financial objectives and the relationship with corporate strategy / stakeholders and impact on corporate objectives organisational objectives including in not-for-profit organisations 
  • Financial management environment – the economic environment for business / nature and role of financial markets, institutions and money markets
  • Working capital management – the nature, elements and importance of working capital / management of inventories, accounts receivable, accounts payable and cash / determining working capital needs and funding strategies
  • Investment appraisal - investment appraisal techniques / allowing for inflation and taxation in investment appraisal / adjusting for risk and uncertainty in investment appraisal / specific investment decisions (lease or buy decision / asset replacement / capital rationing)
  • Business finance - sources of, and raising business finance / estimating the cost of capital, including WACC / sources of finance and their relative costs / capital structure theories and practical considerations / finance for small and medium-sized entities (SMEs)
  • Business valuations - nature and purpose of the valuation of business and financial assets / models for the valuation of shares / the valuation of debt and other financial assets / Efficient Market Hypothesis (EMH) and practical considerations in the valuation of shares

The purpose of this module is to :

  • identify the principal concepts in the theory and practice of financial management and corporate finance
  • develop the knowledge and skills expected of a finance manager, in relation to investment, financing, and dividend policy decisions
  • analyse and evaluate financial strategies  through the application of appropriate tools in relation to management needs  and policies
  • synthesise argument and consolidate knowledge by the presentation of strategic financial decisions, in a coherent format, suitable for relevant users 

Students will attend workshops which will be used to deliver key concepts, ideas theories and examples and will also allow students the opportunity to acquire further subject specific knowledge through individual and group work. Workshops will also be used for formative assessments whereby students will have the opportunity to discuss their work with tutors and gain valuable feedback on their work in order that they can develop their learning. The assessments for the module will allow students the opportunity to explore key concepts and theories whilst developing an appreciation of ‘real-life’ issues. The learning and teaching strategy for the module will allow students to develop both subject specific knowledge and key skills.

At the end of this module, students will be able:

  1. To discuss the role and purpose of the financial management function and evaluate the impact of economic environment on corporate finance and financial management.
  2. To discuss and apply the appropriate techniques in relation to financial management strategies of organisations.
  3. To identify and evaluate business finance and valuation principals and techniques of analysis in order to prepare appropriate presentation of strategic financial arguments in a relevant context.
  4. To demonstrate a critical understanding of how corporate finance concepts and methods should contribute to the business financial performance and sustainability.

Component Weighting % Learning outcome(s) assessed Assessment category
1Report 2000 words50%1, 2Coursework
2Essay 2000 words50%3, 4Coursework
Students will only be reassessed in the component(s) they have failed.

Wherever possible, reassessment for this module will take the original form, and in all cases will meet the required learning outcomes. Where it is difficult to replicate the exact assessment (i.e. a group assessed piece of work or presentation), a task that is equivalent or proportionate to the original, will be set.

Core Texts:

Arnold, G. & Lewis, D. (2019). Corporate Financial Management. (6th ed.). Harlow, United Kingdom: Pearson Education Limited.

Other Recommended Texts:

ACCA. (2019/20). Financial Management. Kaplan Publishing.

Atrill, P. and McLaney, E. (2019).  Management Accounting for Decision Makers. (9th ed.). Harlow, United Kingdom: Pearson Education Limited.

Berk, J and DeMarzo, P. (2020). Corporate Finance (Global ed.). Harlow, United Kingdom: Pearson Education Limited.

Brealey, Myers, S. and Allen, F. (2019). Principles of Corporate Finance. (13th ed.). New York: McGraw Hill Education.

Drury, C. (2019). Management Accounting for Business. (7th ed.). Cengage.

Horne, J. and Wachowicz, J. (2009). Fundamentals of Financial management. (13th ed.). Harlow, United Kingdom: Pearson Education Limited.

Lumby, S and Jones, C. (2019). Corporate Finance: Theory and Practice. (10th ed.). Cenage

Pike, R., Neale, B. and Linsley, P. (2018). Corporate Finance and Investment. Decisions and Strategies. (9th ed.), Harlow, United Kingdom: Pearson Education Limited.

Watson, D. and Head, A. (2016). Corporate Finance Principles and Practice (7th ed.). Harlow, United Kingdom: Pearson Education Limited.

Websites:

  • Financial Times
  • Bloomberg/ Reuters
  • Market Watch, Equity Research
  • Other Financial Newspapers (Business Day, WSJ, Economist)

Diane Yeoman

Accounting and Finance

Chair's Action on behalf of Board of Studies Sub-committee

Fri, 03 Sep 2021

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