Financial Services, Business Planning, Financial Decision-Making

FIN09101 Financial Services Decision Making & Planning 2

School of Accounting, Financial Services and Law

Module code: FIN09101

SCQF level: 09

Trimester: I —2013

Module weight = 20 SCQF credit value

LECTURES:

As per schedule

TUTORIALS:

As per schedule

Module leader: Mauricio Silva

Office: Craiglockhart 3/44

Office hours: by appointment

Contact e-mail: M.Silva@napier.ac.uk

Contact phone: 0131 455 4425

STUDENT MODULE PACK

This module pack contains the following essential information:

1. Module Descriptions: including aims and objectives and methods of assessment

2. Module Outline and Lecture Summary

3. Reading List

MODULE SPECIFICATIONS

GENERAL

Module Weight: 20 credits

Exam Weighting: 50%

Timetable: 3 hours per week (lecture/tutorial)

Prerequisites: FIN08102 Financial Services Decision-Making & Planning 1

Examples of equivalent learning: Accounting module at SCQF level 7

Internal Examiner: Mauricio Silva

Weeks Taught: Trimester One

Keywords: Financial services, business planning, financial decision-making

What you will learn and what this module is about

Financial Services Decision-Making and Planning (FSDM&P) II builds upon your previous studies and experience in financial management, fundamentals of accounting, principles of economics, financial institutions, markets and banking and corporate finance.  The focus of the module is the relationship between financial institutions and corporations, particularly in terms of the critical decisions and planning necessary for valuations for initial price offerings, leveraged buyouts and mergers and acquisitions.  You will develop your problem-solving skills in financial analysis and planning, and be able to assess theories and techniques relevant to financial decision-making in the context of financial institution corporate relationships

Module content

Companies, Corporate Planning, Banking services and the Role of Financial Services Managers; Valuation and financial statement analysis; Cash flows in financial planning; Time value of money; Risk and return.; Interest rates, bond and stock valuations; Cash flow discounting        

Payback, Net Present Value and Internal Rate of Return techniques in investment decisions; Cost of capital; Capital structure theory: Understand the importance of capital structure theory in lending decision-making; Working Capital

Intended learning outcomes

LO1: Demonstrate financial institution/corporate customer relationships and highlight the fundamental role of financial services in corporate financial planning.

LO2: Discuss the principles of financing, highlighting the role and responsibilities of lending institutions and investors for market practices.

LO3: Critically assess the quality of corporate financial reporting and analysis as evidence in investment decision-making and analyse a range of financial techniques.

LO4: Appraise the principles and practice of capital funding planning in the context of the banker/corporate customer relationships.

LO5: Appraise the principles and practice of capital resource planning in the context of banker/corporate customer relationships with particular emphasis on working capital.

Recommended textbook

• Gitman, L (2009), Principles of Managerial Finance, 12th Edition, Pearson Prentice Hall, Boston 
• Marek, S & Silva, M. (2008), Financial Services Decision-Making & Planning II , Edinburgh Napier University, Edinburgh

Complementary textbooks

• Ross, S., Westerfield, R., Jaffe, J.(2005), Corporate Finance, 7th Edition, Mc Graw Hill International,
• Mishkin, F and Eakins S (2009), Financial Markets and Institutions, Pearson Prentice Hall, Boston

LEARNING AND TEACHING METHODS

Embedding of employability/PDP/scholarship skills: 

Lectures explain the key elements of financial institution/corporate customer relationships (LO1), principles of lending (LO2), analysis of quantitative evidence for lending decision-making (LO3) and the wider implications for bankers in corporate financial planning (LO4 and LO5).  Tutorials use a problem-based learning approach to corporate lending: small group or individual consultancies to support coursework and summative assessment requirements.