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Subject details

  • Topics
    • Introduction
    • A short history of stock markets
    • The time value of money
    • Market debt, interest rates and bond valuation
    • The valuation of equity shares
    • Shareholders' required rate of return
    • Accounting statements and ratio analysis
    • Financial leverage
    • Currency exchange rates
    • Derivative instruments (futures and options)
    • Hedging (speculating on) currency risk
  • Study resources
    • Instructional Methods
      • Disscusion forum/Discussion Board
      • Web links
      • Online assignment submission
    • Online Materials
      • Resources and Links
      • Printable format materials
      • Quizzes
      • Audio-Video streaming

On successful completion of this subject you will:

  • CLO1: Identify the nature and key components of financial systems both domestically and globally 
  • CLO2: Apply the concepts of time value of money to various valuation models including debts and equities 
  • CLO3: Illustrate the concept of diversification and examine the impact on the risk and return relationship 
  • CLO4: Analyse the characteristics and functions of arbitrage and derivatives and how they are applied to risk management strategies 
  • CLO5: Explore the features of equity derivatives and evaluate how they work for investors.
  • Assignment 1 - Invigilated Exam - Linked CLOs: 1, 2, 3, 4, 5 (50%)
  • Assignment 2 - Essay - Linked CLOs: 1, 2, 3, 4 (30%)
  • Assignment 3 - Assignment - Linked CLOs: 1, 2, 3 (20%)

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a subject

No eligibility requirements

Special requirements

No special requirements

This subject was previously known as Financial Economics.

This subject is designed to provide you with the techniques and principles underlying theory of corporate finance. You will examine a number of different financial areas and apply various financial concepts. You will assess projects to determine which of them have the best potential payoff, manage investments, value stocks and analyse the risk and return paradigm.

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