Financial ManagementACF 312b

(previously ABF 301)

Semester 2

Module Leader: Apinya Klinpratoom

CKY234, apinya.klinpratoom@plymouth.ac.uk

Have you ever wondered ......

• How wealthy are the founders of Facebook?• Why has Apple been criticised for having over $100bn in the

bank?• Was the Royal Mail sold off too cheaply?• Why is Warren Buffett one of the most successful investors

in the world?• What’s crowdfunding?• Twitter’s IPO raised $1.8bn in 2013. Was it a success?• Supermarkets sell for cash, but often take 60 days to pay

their suppliers. Why?• The £ has strengthened recently. Is that good news?

Don’t despair!!

At the end of this module you should be able to answer those questions and, more specifically:1) understand how businesses raise long term finance2) understand how a company can calculate its cost of capital3) understand how managers take account of various factors affecting

investment appraisal - e.g. inflation, uncertainty, risk, cost of capital4) understand the meaning and implication of an “efficient market”5) employ the various techniques used in the valuation of businesses6) demonstrate an understanding of the different methods by which

corporate restructuring may be effected.7) demonstrate an understanding of the need for the effective

management of working capital

Learning Style:

• Formal lecturer input, based on key exercises PLUS• Student-led problem solving and research• I expect you to do a lot of reading away from the

classroom. These four hyperlinks provide useful background for the module:

• Your reading will supplement the in-class exercises and ensure that you have a deeper understanding of the theoretical underpinning of the syllabus.

Weighting of the assessments:

Coursework 30%Examination (3 hours) 70% May 2016

Aggregate mark 100% Module total

To pass this module your aggregate mark must be at least 40% AND both of your element marks (coursework mark and examination mark) must be above 30%. This is a 20-credit module.

Summative coursework detail• You will do only ONE piece of summative coursework. This will count

as your coursework mark• For this you will work in teams of one to five• You choose your team or you can work on your own• Aim of the assignment: you should research one, or an aspect of one,

of the topics from the ABF 301 syllabus. • So collect up to date/recent information (VITAL!) about that topic.

Your module text and (some of your) supplementary readings are based on theory. I want you to provide topical information that supports, develops (or even counters) a particular theory. This will be presented via:

A presentation (maximum 20 minutes) AND A summary document (maximum five sides)

Formative coursework details

• We shall give you the opportunity to sit formative tests and/or quizzes.

• These won’t count towards your coursework mark but will• Keep you up to date with your studies• Let you know how well you’re doing• Give you invaluable (time-constrained)

practice for your exam

Main Text & Additional reading:

Main Text:• Watson, D. & Head, A. (2012). Corporate Finance: Principles & Practice (6th

ed.). FT/Prentice Hall, This is available in the “The University Bookseller”, North Hill, Plymouth. You are strongly encouraged to make use of the additional learning materials available to purchasers of this textbook.

Additional reading:• EJ McLaney (2011). Business Finance: Theory and Practice, (9th ed.).

FT/Prentice Hall.• B Neale & T McElroy (2004). Business Finance: A Value Based Approach, (1st

ed.). FT/Prentice Hall.• G Arnold (2012). Corporate Financial Management, (5th ed.). FT/Prentice

Hall.The above books are part of a large Financial Management/Business Finance selection available in the available in the University Library, (reference 658.15).

In conclusion

This is a very interesting module and it will give you a really good understanding of key

issues in corporate finance (CF).You will find countless practical examples of

CF issues in the media. This, combined with the exercise-led approach

to lectures, will help you to combinetheory and practice.