Bangor University

Transfer Abroad Undergraduate Programme

Module Implementation Plan

MODULE: ACF-103 LECTURER: Murray Smart

FUNDAMENTALS OF FINANCIAL MANAGEMENT
INTAKE: 2013 SEMESTER: 4
ACTIVITY TYPES: Lecture, presentation, quiz, exam, workshop

Start Date: May 25, 2015

End Date: June 12, 2015

Year Semester Academic weeks Module Code Module Name Credits Lecture hrs/week HAUT Tutorial Hrs/week Weeks
Fundamentals of Financial Mon-Fri
Week 12 ~ 14 10 Mon-Fri
II Spring ACF-103 Management 0830-1130 1430-1530 3
2015/05/25~2015/06/12

Course Detail: This course introduces students to the fundamentals of financial management. Broadly the course consists of three major topics: the
principals of financial mathematics (time value of money) and valuation, capital expenditure decisions and capital structure.
The concepts of TVM apply across the whole course.
Business finance environment: Role of financial management, Financial goals of a firm: stakeholder demands and agency theory types of business
structure.
Mathematics of finance: Time value of money – present and future values – mixed stream cash flows and annuities; Valuation of stocks and bonds
Management of working capital: Cash, marketable securities, accounts receivable, inventory, short-term financing
Accounting for risk: Expected returns, standard deviation, coefficient of variance, probability distributions
Capital expenditure decisions: Techniques – NPV, IRR, Payback, Profitability index; expansion or replacement projects, unequal lives, capital rationing
Required rate of return and cost of capital: Weighted average cost of capital – debt, preference shares common equity; CAPM, dividend growth model
Capital structure: Leverage – operating, financial, total; EBIT-EPS and breakeven analysis, finance mix, optimal capital structure, Modigliani &
Miller theory

Assessment: 2-hour examination at end of course

Assessment Date Value

( Variable based on individual module )
Class Participation Tutorial Homework 10%
Attendance N/A
 Quiz I N/A
Quiz II N/A
Individual Assignment N/A
Group Paper N/A
Final Exam 12 June 2015 90%

Paper Assignment (if any)

Week Activity Scheduled Activity Details Core Reading + Additional Learning Outcomes Student Preparation
Type Contact Reading + Practice Material for Tutorial
Hours

Week 01

Monday Lecture 3.0hr Define financial management; goal of the firm; business Van Horne Chs 1&2 Understand the role Read chapter(s),
May 25
and financial environment. Van Horne Chs 6&7 of finance in the study power
Identify the components of financial statements and key business and financial point files;
data applicable to financial management environment. attempt tutorial
Understand the problems
Tutorial 1hr relevance of financial
Tutorial 1
statements to
financial management

Tuesday Lecture 3.0hr Present and future values of single sums, mixed cash Van Horne Ch 3 Understand and apply Read chapter(s),
May 26
flows and annuities the Mathematics of study power
finance - Time value point files;
of Money attempt tutorial
Tutorial 1hr Tutorial 2-3 problems

Wednesday Lecture 3.0hr Present and future values of single sums, mixed cash Van Horne Ch 3 Understand and apply Read chapter(s),
May 27
flows and annuities the Mathematics of study power
finance - Time value point files;
of Money attempt tutorial
Tutorial 1hr Tutorial 2-3 problems
 Thursday Lecture 3.0hr Applying principles of TVM to the valuation of bonds Van Horne Ch 4 Apply mathematics of Read chapter(s),
May 28
and stocks, working capital management, capital finance to the various study power
expenditure decisions, cost of capital and capital components of point files;
structure financial management attempt tutorial
Tutorial 1hr Tutorial 4 problems

Friday Lecture 3.0hr Define risk and return, application of probability Van Horne Ch 5 Understand the Read chapter(s),
May 29
distributions, expected return, standard deviation, concepts of risk and study power
coefficient of variance return point files;
attempt tutorial
Tutorial 1hr Quiz week 1 - Revision Quiz week 1 - problems
Revision

Week 02

Monday Lecture 3.0hr Management of working capital – cash, marketable Van Horne Chs 8-11 Understand the Read chapter(s),
Jun 01
securities, accounts receivable, inventory, short-term 2 Handouts concepts of study power
financing management of point files;
working capital and attempt tutorial
Tutorial 1hr Tutorial 5 short-term financing problems

Tuesday Lecture 3.0hr Management of working capital – cash, marketable Van Horne Chs 8-11 Understand the Read chapter(s),
Jun 02
securities, accounts receivable, inventory, short-term 2 Handouts concepts of study power
financing management of point files;
working capital and attempt tutorial
Tutorial 1hr Tutorial 6 short-term financing problems

Wednesday Lecture 3.0hr Objectives of capital budgeting, the process and Van Horne Chs 12 & Acquire and apply Read chapter(s),
Jun 03
identification of relevant cash flows 13 skills in capital study power
budgeting concepts point files;
 Tutorial 1hr Tutorial 7 and methods used. attempt tutorial
problems

Thursday Lecture 3.0hr Application of capital budgeting techniques – payback, Van Horne Chs 12 & Acquire and apply Read chapter(s),
Jun 04
NPV, IRR, profitability index; capital rationing 13 skills in capital study power
budgeting concepts point files;
and methods used. attempt tutorial
Tutorial 1hr Tutorial 8 problems

Friday Lecture 3.0hr Application of capital budgeting techniques – payback, Van Horne Chs 12 & Acquire and apply Read chapter(s),
Jun 05
NPV, IRR, profitability index; capital rationing 13 skills in capital study power
budgeting concepts point files;
and methods used. attempt tutorial
Tutorial 1hr Quiz week 2 - Revision Quiz week 2 - problems
Revision

Week 03

Monday Lecture 3.0hr Identifying required rates of return and calculation of Van Horne Ch 15 Understand the Read chapter(s),
Jun 08
costs of capital – dividend growth model, CAPM – for concept of cost of study power
debt, and equity; WACC capital and required point files;
returns for a firm attempt tutorial
Tutorial 1hr Tutorial 9 problems

Tuesday Lecture 3.0hr Operating, financial and total leverage; EBIT-EPS & Van Horne Ch 16 & 17 Understand and Read chapter(s),
Jun 09
breakeven analysis; optimal capital structure and analyse the impact of study power
Modigliani & Miller relationships leverage on the point files;
capital structure of a attempt tutorial
Tutorial 1hr Tutorial 10 firm problems
Wednesday Lecture 3.0hr Quiz Week 3 – Revision Quiz Week 3 - Revise tutorial
Jun 10
Exam revision Revision problems
Exam revision

Tutorial 1hr Exam revision

Thursday Lecture 3.0hr Exam revision Exam revision Revise tutorial

Jun 11
problems

Tutorial 1hr Exam revision

Friday
Jun 12
Final Exam