Lecturer: Dr Shaling LiAccounting and Finance Department

PBS, University of Portsmouth

IntroductionBackground of this unitAim of this unitLecturersMain structureTextbookCourse workAssessment

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Background knowledgeMath (essential)Management (essential)Finance & investment (relevant)

Career evidenceA day in a life: a financial manager

(http://www.youtube.com/watch?v=Ui2YdIKL9kY&feature=related)

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Aims of this UnitTo provide students with a knowledge and

basic understanding of the finance and its link with firm value.

To provide students skills to understand the link between stock price movement and financial management decisions.

To enable non-finance specialists to communicate with financial specialists in the future career.

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LecturersCourse co-ordinator: Dr Shaling Li (SL) External: 023-9284-4295 shaling.li@port.ac.uk Lecturer: Ms Lena Itangata (LI) External: 023-9284-4010,

lena.itangata@port.ac.uk

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Main structure

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Financial manageme

nt

Investment decisions

Firm Value

Distribution decisions

Financing decisions

Textbook1. Essential and necessary reading:

lecture handout

2. Additional supportive readings:Corporate Financial Management (3rd / 4th

edition), by Glen Arnold, FT Prentice Hall. Essentials of Corporate Financial Management,

by Glen Arnold, FT Prentice Hall.

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AssessmentCourse work: 40%Exam: 60%

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ExamExamination paper will consist of two parts.Part A (50 marks)

compulsory multiple choice questions + short-answer

questionsPart B (50 marks)

choose 2 out of 4, each 25 marks.

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Course workThe hand-in date for the assignment is Friday

4th December 2009.

Word limit: 2000 words (+/- 10%)

Detailed information as below

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More about course workPart 1: (Building blocks)Explain what is meant by:-

financing decision, investment decision and distribution decision;

and how they are related.

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More about course workPart 2: (Application of your knowledge 1)Find a quoted company and investigate their

main financing, investment and distribution decisions in the past three years.

Critically appraise your findings.

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More about course workPart 3 (Application of your knowledge 2)Investigate how the financing, investment

and distribution decisions of your chosen company have influenced the company’s share price over the past three years (you reviewed in Part 2).

Comment on your results.

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Seminar questionsWell, there is none Happy reading with your handout and

assignment requirement.Do come to the seminar (essential for the

completion of your course work)How to collect financial management –related

news of quoted firms in UKHow to know the stock market price

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