Teaching Responsibility
LJMU Schools involved in Delivery:
LJMU Partner Taught
Learning Methods
Lecture
Seminar
Workshop
Module Offerings
5055YPCBM-JAN-PAR
Aims
The module is designed to enable the student to use investment appraisal techniques and to critically evaluate investment appraisal activity within the firm. The module will also enable students to demonstrate an awareness of the significance of finance theory and its contemporary and practical relevance.
Learning Outcomes
1.
Indicate the major objectives of the financial manager
2.
Use relevant financial data to calculate the cost of capital
3.
Analyse Investment decisions using discounted cash flow models
4.
Analyse risk from a utility theory perspective
5.
Evaluate the role of portfolio theory and the Capital Asset Pricing model in assessing and pricing risk.
6.
Apply the theory of option pricing
7.
Recognise the implications of the Efficient Markets Hypothesis
8.
Demonstrate how to calculate optimal capital structure
9.
Use relevant data to evaluate the working capital policy of a given financial enterprise
Module Content
Outline Syllabus:1. Financial objectives of the firm.
2. Traditional methods of investment appraisal.
3. Discounted cash flow methods of investment appraisal.
4. The impact of inflation and taxation on the investment appraisal decision.
5. Project evaluation under conditions of capital rationing.
6. Asset replacement
7. Utility Theory
8. Portfolio theory and the Capital Asset Pricing Model
9. Option pricing theory
10. Leasing
11. The Efficient Markets Hypothesis
12. Sources and cost of capital
13. Capital structure
14. Working Capital Management
Additional Information:This course enables students to use standard financial models in order to analyse the investment, capital structure and working capital policy of any financial enterprise,