INMB07-Foundations of Finance for Informatics

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Autumn term module
Non-modular pre-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Liang Han


Summary module description:
This module aims at providing students with a strong basis in the fundamental areas of finance with a particular focus on corporate and international finance. The various concepts covered in these areas require good knowledge in certain aspects of finance, including valuation, asset pricing and investment.
This module is delivered at Beijing Institute of Technology.

The Foundations of Finance module aims to provide students with a thorough understanding of key issues in the theory of finance and the relevance of theory for financial decision making for investors and firms. Distinctively from other more advanced finance modules, emphasis is given to a thorough grounding in theoretical and applied finance. Specifically, a closer examination of risk-return relationship, portfolio analysis, asset pricing, financial derivatives and risk management will be provided, where the material presented for each topic will also include empirical evidence relevant to the theory. Although the module is technical in nature it does not require a prior knowledge of theoretical finance. Another distinctive feature of the module is its flexibility in that it should offer the essential skills to those wishing to follow careers in finance, as well as those wishing to pursue further research in finance.

Assessable learning outcomes:
On completing the module students should expect to learn the key principles of finance and their use by corporations and investors and others. More specifically, they should:
1. Gain a good understanding of the underlying assumptions and the interpretation of asset pricing models, portfolio theory, and option pricing models;
2. Comprehend the empirical tests and criticisms of these models;
3. Apply the methods taught in the module to solve specific problems in finance;
4. Be able to evaluate critically the usefulness and the relevance of widely used asset pricing and security valuation models in finance;
5. Identify the major results, findings, and the remaining issues in the areas taught in the module;

Additional outcomes:
Structured activities are designed to develop independent learning skills. Students are encouraged to develop additional IT skills by use of relevant web resources and communication techniques, including Blackboard.

Outline content:
1. Introduction to Financial Management and Financial Markets
2. Time Value of Money; Risk and Return
3. Introduction to Security Valuation
4. Cost of Capital
5. Investment Appraisal
6. Capital Structure
7. Payout Policy
8. Working Capital and Current Asset Management
9. International Business Finance

Brief description of teaching and learning methods:
A range of teaching and learning methods will be employed, but will focus largely on lectures, group work and independent supported learning. It is supplemented by tutorials offered by local tutors are Beijing Institute of Technology during the pre-intensive and post-intensive periods.

Contact hours:
  Autumn Spring Summer
Lectures 20
Tutorials 12
Guided independent study 168
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written assignment including essay 100

Other information on summative assessment:

Formative assessment methods:
Formative assessments are available in the class for all weeks of the module to enable students to gain the necessary practice.

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information:

Length of examination:

Requirements for a pass:
Students will be required to obtain a mark of 50% on the coursework.

Reassessment arrangements:
Resubmission of the coursework.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 31 March 2017

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