Course Catalogue

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Financial Management aims to provide students with a thorough understanding of the theory and practice governing corporate financial management. Learning is facilitated through lectures, seminars, assignments and newspaper articles. Examples and exercises from corporations will be used to illustrate financial concepts and foster learning through experimentation and practice.

20 x 2 hour lectures

8 x 1 hour seminars

University of Glasgow students must have achieved Subject Honours entry requirements as detailed below to enrol on this course. A GPA of 12 (average C3) in the following courses with no course grade below D3, attained at the first attempt:

■ MGT2010 - Business Decision Analysis

■ MGT2011 - Fundamentals of Human Resource Management

■ MGT2012 - Service and Operations Management

■ MGT2014 - Entrepreneurship

None

None

1. Written assignment, including essay; Individual; 1000 words (+/- 10%); 20%; ILOs 2-5.

2. In-course exam; online (MCQ); Individual; 60 minutes; 20%; ILOs 1-2.

3. Degree exam; online; Individual; 120 minutes; 60%; ILOs 1-5.

Financial Management aims to provide students with a thorough understanding of the theory and practice governing corporate financial management. The course aims to introduce students to fundamental concepts in finance and increase financial literacy covering the investment decision, the financing decision and the payout decision. To make sure these decisions are taken efficiently and effectively, managers need the guidance of finance theory as well as empirical evidence. This course introduces some of the key concepts of modern finance, capital structure theories including portfolio theory and the capital asset pricing model, and agency theory. The course also introduces students to an analysis of security valuation (of bonds and equity), capital appraisal methods, and cost of capital analysis, beyond others.

By the end of the course, students should be able to:

1. Analyse and assess the core functions of financial management and evaluate the complexity of financial decision-making in various business settings.

2. Interpret and apply the present value principle in a range of financial contexts and utilize advanced investment appraisal techniques to evaluate various investment decision-making.

3. Examine the role of capital markets in financial decision-making and apply different methods used to value debt and equity instruments.

4. Explain and analyse the significance of the relationship between risk and return and apply this understanding to real-world corporate environments.

5. Evaluate and compare different capital structure theories, both in the context of perfect capital markets and under market imperfections and formulate reasoned judgments about their practical implications.