Main Topic

Chapte
r

Content

Week 1:
Introduction to
Financial
Management
Week 2: Time value
of Money
Fundamentals

1&2

5&6

Week 3: Risk and

Return

Week 4: Bond and

Share Valuation

8&9

Week 5: The
Fundamentals of
Capital Budgeting

10

Week 7: Cash Flows

11

Role of financial manager and company

goal
Agency conflicts
Financial System and interest rates
Present value and future value of single
cash flow
Annuity and perpetuity
Growing annuity and growing perpetuity
Expected return and variance (volatility)
of a single asset
Covariance, correlation and portfolio
variance
Type of risks and diversification benefit
CAMP and security market line

Efficient market hypotheses

Corporate bond and valuation
Share valuation
Introduction to capital budgeting
NPV, (discounted) payback period,
accounting rate of return, internal rate of
return
Calculate project cash flows

Past Final Exam

Questions

2011
5,7,9
2012
4,5
2012
4,5
2013
2013
2014
2015
2011
2012

Sem2 Part B Question

Sem1 Part B Question
Sem2 Part B Question
Sem1
Sem2
Sem2
Sem1
Sem2
Sem2

Part
Part
Part
Part
Part
Part

B
B
B
B
B
B

Question
Question
Question
Question
Question
Question

2
2
5c
3
4
1b

2011 Sem2 Part B Question 1

2011 Sem2 Part B Question 2a
2015 Sem1 Part B Question 2
2011 Sem2 Part B Question

and Capital
Budgeting

Week 8: Evaluate
Project Economics
and Capital
Rationing

12

Week 9: The Cost of

Capital

13

Week 10: Capital

Structure, Capital
Management and
Payout Policy

15, 16 &
17

Evaluate projects with different lives

Variable costs and fixed costs

Calculate operating leverage, break-even
points, cross-over levels
Risk analysis
Cost of debt, ordinary shares and
preference shares
WACC

Modigliani and Miller propositions

Benefits and costs of using debt
Venture capital
Dividend policy and company value

2b, 10
2012 Sem1
2012 Sem2
2013 Sem1
2013 Sem2
2015 Sem1

Part
Part
Part
Part
Part

2011
6
2012
2
2012
1a,2
2013
2013
2014
2
2014
1,2,3
2015
2011
2012
2012
2013
2013

Part
Part
Part
Part
Part
Part

B
B
B
B
B

Question
Question
Question
Question
Question

6
6
4
5
5

Sem2 Part B Question 3,

Sem1 Part B Question 1,
Sem2 Part B Question
Sem1 Part B Question 1
Sem2 Part B Question 1
Sem1 Part B Question 1,
Sem2 Part B Question
Sem1
Sem2
Sem1
Sem2
Sem1
Sem2

B
B
B
B
B
B

Question
Question
Question
Question
Question
Question

1
8
3
3
3
3

Week 11: Options

20

Week 12:
International
Financial
Management

21

Financial options: call and put

Variables that affect option values
Real options
Foreign exchange markets and exchange
rate
International capital budgeting

2014 Sem2
5b, 6b
2014 Sem1
2014 Sem2
2015 Sem1
2014 Sem1
4,5
2014 Sem2
5a, 6a
2015 Sem1

Part B Question
Part
Part
Part
Part

B Question 3
B Question 4
B
B Question

Part B Question
Part B Question 4