Financial Economics & Capital Markets - ECO00004I

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  • Department: Economics and Related Studies
  • Module co-ordinator: Dr. Laura Coroneo
  • Credit value: 20 credits
  • Credit level: I
  • Academic year of delivery: 2018-19

Module will run

Occurrence Teaching cycle
A Autumn Term 2018-19 to Summer Term 2018-19

Module aims

  • To develop an understanding of the rapidly evolving and exciting theory of finance.
  • To evaluate how close the firms investment, financing and dividend decisions come to an objective of maximising shareholder wealth.
  • To familiarise with financial decision making.
  • To raise awareness of the environment in which financial decisions are made.
  • To provide training in the key issues of capital markets.
  • To understand the importance of risk management in financial markets.

Module learning outcomes

On completing the module students should be familiar with:

  • The time value of money, the notion of compound interest, the definition of the internal rate of return, the valuation of financial instruments and the perpetual growth model.
  • The four criteria that companies use to make investment decisions the net present value rule, the payback rule, the profitability index rule and the internal rate of return rule.
  • The distinct features of main financial instruments including debt, equity and financial derivatives.
  • The general principles of pricing and use of financial instruments.
  • The concepts of market efficiency, portfolio risk and diversification.
  • The characteristic line and the definitions of the equity risk premium.
  • The Black-Scholes option pricing model.
  • The valuation impact of uncertain investments and how risk and real options alter the treatment of capital budgeting.

Assessment

Task Length % of module mark
University - closed examination
Financial Economics & Capital Markets
3 hours 100

Special assessment rules

None

Reassessment

Task Length % of module mark
University - closed examination
Financial Economics & Capital Markets
3 hours 100

Module feedback

Information currently unavailable

Indicative reading

Berk and DeMarzo. (2011). Corporate finance. Pearson, Global Edition.



The information on this page is indicative of the module that is currently on offer. The University is constantly exploring ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary by the University. Where appropriate, the University will notify and consult with affected students in advance about any changes that are required in line with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.