Foundation of Financial Management
Module syllabus
Teacher Name: Zhanwei Liu
School Name: Xuchang University
1. Unit description
Financial management is part of the decision-making, planning and control subsystems of an enterprise. It incorporates the treasury function, which includes the management of working capital and the implications arising from exchange rate mechanisms due to international competition, evaluation, selection, management and control of new capital investment opportunities, raising and management of the long-term financing of an entity.
The management of risk in the different aspects of the financial activities undertaken is also addressed. Studying this course should provide you with an overview of the problems facing a financial manager in the commercial world. It will introduce you to the concepts and theories of corporate finance that underlie the techniques that are offered as aids for the understanding, evaluation and resolution of financial ma nagers’ problems. This subject guide is written to supplement the Essential and Further reading listed for this course, not to replace them. It makes no assumptions about prior knowledge other than that you have completed Principles of accounting.
The aim of the course is to provide an understanding and awareness of both the underlying concepts and practical application of the basics of financial management. The subject guide and the readings should also help to build in your mind the ability to make critical judgments of the strengths and weaknesses of the theories, just as it should be helping to build a critical appreciation of the uses and limitations of the same theories and their possible applications.
On successful completion of the module, learners will be able to:
●describe how different financial markets function and estimate the
value of different financial instruments (including stocks
and bonds)
●make capital budgeting decisions under both certainty and uncertainty
●apply the capital assets pricing model in practical scenarios
●discuss the capital structure theory and dividend policy of a firm
●estimate the value of derivatives and advise management how to use
derivatives in risk management and capital budgeting
●describe and assess how companies manage working capital and
short- term financing
2. Pre-requisite units and assumed knowledge
Accounting, Economics
3. Learning aims and outcomes
Learning Outcome 1
Explain the method of financial analysis and planning
ASSESSMENT CRITERIA:
a. Explain the goals and objectives of financial management
b. Demonstrate a reasonable ability to prepare the three basic financial
statements
c. Discuss the method of financial analysis
d. Explain the operating leverage, financial leverag
e. and combined
leverage
Learning Outcome 2
Explain the manager how to manage working capital
ASSESSMENT CRITERIA:
