Accounting and Finance

Principles of Finance

Module code: N1560
Level 4
15 credits in autumn semester
Teaching method: Lecture, Seminar
Assessment modes: Computer based exam, Coursework

On this module, you’ll be introduced to key financial concepts, instruments and markets. No prior knowledge of finance is required, although a basic level of numeracy will help you fully understand some of the topics covered.

Topics include:

• a fundamental concept in finance: the time value of money (discounting and compounding)
• an overview of the role of financial institutions and markets, and the impact of interest rates and exchange rates
• the valuation of bonds and equity, including the Capital Asset Pricing Model (CAPM)
• the capital structure of firms and their Weighted Average Cost of Capital (WACC).

You’ll find this module valuable in both your professional and personal life, helping you develop a strong understanding of loans, mortgages, savings and investments. It also complements other modules within your course.

Module learning outcomes

• Demonstrate knowledge of the core principles of finance, the most common financial institutions, products and markets, and show an understanding of financial concepts widely used in decision-making.
• Analyse a financial problem, or issue, using an appropriate theoretical framework, and present financial ideas, concepts and information using means appropriate to the audience and the problem.
• Describe the fundamental concepts relating to interest rate markets, such as the yield curve.
• Understand why financial markets require that all participants operate to high ethical standards in order to achieve the mutual trust required for their smooth and efficient functioning.