| Short Title: | Financial Management |
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| Full Title: | Financial Management |
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| Description: | Module Aims:
This module aims to provide students with a comprehensive knowledge of the theoretical foundation and framework for Financial Management. It aims to provide students with transferable analytical skills that can be applied in various business scenarios.
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| Learning Outcomes: |
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| On successful completion of this module the learner will be able to | - Define and explain the role of Financial Management and its nature and scope
- Demonstrate an understanding of the Financial Management Framework and the strategic context within which organisations operate
- Select appropriate methods to conduct research in order to critically analyse the financial performance of an organisation leading to informed investment decisions
- Interpret Financial Statements using suitable analytical tools such as ratio analysis for the purpose of research in a range of business and management contexts
- Identify the key aspects of working capital management principles that can be applied to business situations in a variety of contexts
- Identify and evaluate the sources of finance available to organisations and to consider dividend policy
- Take part in a group presentation to research , collaborate and develop an analysis of a business or financial scenario and present findings and recommendations
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Module Content & Assessment| Content |
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The nature and scope of Financial Management: (5%) Financial strategy and organisational objectives for commercial and not-for-profit organisations
Financial strategy and the role of the financial manager
Corporate social responsibility towards shareholders and society The Financial Management Framework: (10%) The role of commercial banks, The stock markets and financial intermediaries
The Efficient Markets Hypothesis and its implications
The international money and capital markets
The nature and purpose of stock exchanges and the implications of obtaining a stock market listing Interpretation of accounts: (25%) The financial statements and their role as providers of information for investors
Operating performance
The importance of cash flows
Users of financial statements
Solvency-liquidity ratios
Debt management ratios- gearing/leverage ratios
Asset management ratios or efficiency ratios
Profitability ratios including Stock Market ratios
Trend analysis
Horizontal analysis and Common Size Statements
International accounting practice
Limitations of ratio analysis
Other factors affecting financial performance and position and share Working capital: (25%) The nature and importance of working capital management
The cash flow cycle
Working capital investment and sales
Calculation of working capital requirements
Shortening the cash cycle
Methods employed to manage stock/inventory, debtors/receivables and cash
Main elements of trade credit policy and assessment methods for creditworthiness of a credit customer
The stages in the debt collection process
Analysis of aged debtors/receivables
Remedies for bad debts
The management of trade creditors/payables and bank overdrafts
Optimum inventory levels- safety stocks, EOQ, JIT, MRP, outsourcing
Financial implications of different working capital policies
Working capital problems of the small business
Overtrading – reasons, causes, effects and remedies Sources of finance: (25%) Key features of the main sources of finance
Share capital - including forms of share issue, redemption and repurchase of shares
Loan capital - including mezzanine finance, junk bonds, Eurobonds, warrants, convertibles, debentures and mortgages
Leasing (including sale and leaseback) and hire purchase
Invoice discounting and debt factoring
Bills of exchange and acceptance credits
Other sources of bank finance and internal sources of finance
Factors influencing choice of financing methods
The effect of financing decisions on risk, income and control
Finance and the small business Government sources: (10%) grants, regional and national aid schemes and tax incentives
Nature and role of Venture Capital
Dividend policy:
Dividend payment sequence
The dividend policy debate
Resolutions to the dividend controversy
Dividends as a residual of profit
Dividend stability
Factors affecting dividend policy
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| Assessment Breakdown | % |
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| Course Work | 30% | | End of Semester Formal Examination | 70% |
| | Outcome addressed | % of total | Assessment Date |
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| Formal End-of-Semester Examination | None | 70% | Semester End |
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| Coursework Breakdown |
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| Type | Description | Outcome addressed | % of total | Assessment Date |
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| Project | The continuous assessment will take the form of a group research project (incorporating qualitative and quantitative research, report writing skills, and referencing skills). This may include a presentation based on a group research project, where students will be given a group and individual mark. 50% of the total grade is awarded by the lecturer. The students grade each other for the remaining 50%, thereby building extent of contribution into the grading system themselves .This is monitored closely by the lecturer. This will constitute the 30% of overall grade | | 30 | Sem 1 End |
IT Tallaght reserves the right to alter the nature and timings of assessment Module Workload & Resources| This course has no full time workload. |
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| Resources |
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| Required Book Resources |
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- Denzil Watson and Anthony Head, Corporate Finance Principles and Practice FT, Prentice Hall
| | Recommended Book Resources |
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- Power, T., Walsh S., O’ Meara P, Financial Management: an Irish Text, Latest Ed., Gill & McMillan
- ACCA, Diploma in Financial Management, Financial Strategy and Risk Management, Latest Ed., BPP Professional Education Publications
- Samuels, J.M., Wilkes, F.M., Brayshaw, R.E, Management of Company Finance, Latest Ed., Chapman & Hall
- Weston, J.F., Copeland, T.E., Managerial Finance, Latest Ed., Cassell
- Brett, M, How to Read the Financial Pages, Latest Ed., Random House Business Books.
- Pinches, G.E, Essentials of Financial Management, Latest Ed., Harper Collins
| | Required Article/Paper Resources |
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- Journals, Magazines, Newspapers and Electronic Sources of information on issues relevant to Financial Management. n/a
- Accountancy (UK) Journal ICAEW n/a
- Accountancy Ireland Journal ICAI n/a
- Accountancy Age Journal n/a
- Accountancy Plus Journal ICPAI n/a
- Business and Finance Journal n/a
- Financial Times Newspaper n/a
- Sunday Business Post Newspaper n/a
| | Other Resources |
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- n/a: ICAI http://www.icai.ien/a
- n/a: ICAI: IFRS http://www.icai.ie/Members/ifrs.cfmn/a
- n/a: ICAEW http://www.icaew.co.uk/n/a
- n/a: ACCA http://www.accaglobal.com/n/a
- n/a: CIMA http://www.cimaglobal.com/n/a
- n/a: ICPAI http://www.cpaireland.ie/n/a
- n/a: ASB http://www.frc.org.uk/asb/n/a
- n/a: IASB http://www.iasb.org/n/a
- n/a: IASPLUS http://www.iasplus.com/index.htmn/a
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