Trinity Business School
Introduction to Finance 2022/23
Module Code: BUU22550
Module Name: Introduction to Finance
ECTS: This course carries 5 ECTS credits.
Lecturer:
E-mail:
Office Hours:
Dr Supriya kapoor
kapoorsu@tcd.ie
By appointment (Please email to schedule)
MODULE DESCRIPTION
The Finance function is a critical aspect of any organisation. The success or failure of a firm may
be influenced significantly by how it manages its finances. It is therefore important for both
managers and employees to understand the principals of financial management for firms operating
in any industry. This course is designed to provide a comprehensive understanding of financial
management. It focuses on analysing and evaluating financial products using various techniques.
The module covers a range of topics related to financial management such as debt policy, dividend
policy, maximising corporate value and financial risk. Throughout this module, students will
become familiar with the basic concepts of corporate finance and financial language used within
academic literature and the media.
LEARNING AND TEACHING APPROACH
The lectures and material will serve as a guide for the students to deepen their understanding in
finance. In addition to the lecture slides, the students will be provided with supplementary reading
material including academic papers and case studies. This will allow them to create a bridge
between concepts of finance and how they can be applied in real businesses. Further, in addition
to the readings, there will be weekly problem sets that they will be solving with the tutor The
tutorials will aim to enhance their knowledge and critical thinking skills on the topics covered.
MODULE-LEVEL LEARNING OUTCOMES
Having completed this module, the student should be able to:
1. Understand and examine the fundamental functions of the financial system
2. Apply financial theories and mathematical techniques to value bonds, stocks and other
risky assets
3. Appraise the different investments available to a business based on capital budgeting
tecjniques
4. Understand the concept of risk and return and the importance of managing the relation
between the two in corporate decision-making
5. Understand the basic elements of investment, financing, capital structure, management of
working capital and dividend decision processes.
RELATION TO DEGREE
Understanding finance is an essential element for any business and is an essential module of any
degree in business. This is an introductory module to provide students the fundamentals and key
concepts of corporate finance.
WORKLOAD
Content
Lecturing hours
Preparation for lectures
Individual assignment
Reading of assigned materials and active
reflection on lecture and course content and
linkage to personal experiences
Final exam preparation
Total
Indicative Number of Hours
22
8
25
50
20
125
TEXTBOOKS AND REQUIRED RESOURCES
The recommended textbook for this module is:
Brealey, R. Myers, S. and Marcus, A. Fundamentals of Corporate Finance, McGraw-Hill.
Any recent edition of this textbook will suffice. Alternatively, the college library contains many
other excellent textbooks on Corporate Finance which can be referred to for extra reading.
Student preparation for the module
Throughout the module, I will be introducing extra reading material including case studies and
academic articles corresponding to topics covered in the module.
COURSE COMMUNICATION
Please note that all course related email communication must be sent from your official
TCD email address. Emails sent from other addresses will not be attended to.
ASSESSMENT
The assessment for this course is split between continuous assessment and final exam. The
breakdown is as follows:
Continuous assessment: Term tests – 30%
Final exam – 70%
The term tests which must be completed online in the allocated timeframe. Students unable to
complete a test for medical reasons must present a medical certificate to their college tutor.
Students who fail the module will need to submit a supplemental final assessment.
supplemental assessment will count for 100% of the grade.
The
Attendance at lectures and tutorials is required, any student who attends less than two thirds of
lectures and tutorials may be deemed non-satisfactory as per college regulations and may not be
allowed to sit the final exam.
https://www.tcd.ie/undergraduate-studies/academic-progress/attendance-course-work.php
MODULE SCHEDULE
Introducin
g Core
Concepts
Week
of
Term
1
2
Calculating
Financing Costs
3
4
5
6
Topic












Introduction to Finance
Time Value of Money, Compounding
and Discounting
Annuities and Perpetuities
Bonds
Bond Valuation
Equity
Equity Valuation
Capital Budgeting
NPV and other techniques
Cashflow Analysis & DCF
Return and Risk in Finance
Diversification & the CAPM
Book Chapters.
Readings will be
added on Blackboard
Brealey at al.
Chapters 1 & 5
Chapter 5 & 6
Chapter 6 & 7
Chapter 7
Chapter 8 & 9
Chapter 11
Chapter 12 & 13
Capital
Budgetin
g
7
8
9
Dividend
Policy
10
11
12









Reading Week
Cost of Debt and Equity
WACC
Cost of Debt and Equity
The Cost of Capital
Debt Policies
Working Capital Management
Dividend Policy I
Dividend Policy II
Evidence on Dividend Policies
Module Round-up
Chapter 13 & 16
Chapter 13 & 16
Chapter 17
Chapter 10
Chapter 10
Introducing Core Concepts:
The early lectures will serve as an essential introduction to the core concepts of this module,
discussing the main areas of focus in corporate financial management, and introducing the main
types of financial calculations used in corporate finance. It is very important that students fully
understand the calculations covered in this part of the course, such as present and future values,
compounding, annuities and perpetuities, real and nominal interest rates. These methods are used
throughout the module.
Financing Costs and Capital Structure:
This section introduces bonds, how they are priced and traded and the main risk factors that affect
their price and yield. Credit rating agencies and their impact on the cost of issuing debt are also
discussed. We then discuss features of equities and equity markets. We focus on how to analyse
investments in terms of risk and return, and introduce the Capital Asset Pricing Model (CAPM).
We value shares using two pricing models: the dividend discount model and the CAPM. We
calculate the cost of debt and equity of a firm and combine them to calculate the firm’s cost of
capital. We discuss the topic of capital structure (the firm’s mix of debt and equity). Various
theories on a firm’s capital structure are critiqued and some conclusions drawn on the factors that
should influence a firm’s debt-equity ratio.
Capital Budgeting:
This section covers the topic of capital budgeting, and the methods used by firms to evaluate
investment projects. We analyse investment projects using methods such as Net Present Value,
the Internal Rate of Return, Payback methods and the Profitability Index. We also discuss which
cashflows should be included in capital budgeting calculations, and types of project analysis. We
also cover working capital management and the issues involved in trying to manage short term
cashflows.
Dividend Policy:
Finally we discuss how the firm rewards its investors. We evaluate the different methods that
firms use to return value to shareholders, share buybacks and cash dividends. We examine the
advantages and disadvantages to the firm and the investors of paying dividends, and we discuss
different models of dividend policies.
BIOGRAPHICAL NOTE:
Dr Supriya Kapoor is an Assistant Professor of Finance at the Trinity Business School, Trinity
College Dublin. Prior to this, she was a tenured Assistant Lecturer in the College of Business at
Technological University Dublin (TU Dublin) from 2019- 2022.
Supriya holds a PhD in Economics from University College Dublin and MSc in Economics from
Trinity College Dublin. Her research interests are at the intersection of finance and
macroeconomics with an emphasis on the role of financial institutions and monetary policy. She
has published her research in international peer-reviewed journals including Journal of Banking &
Finance. Her latest research outputs focus on quantitative assessment of unconventional monetary
policies, their impact on asset prices, balance sheets, banking stability and green banking.
Supriya also has professional experience in the industry as she has worked as a consultant for Irish
Tax Institute and economics intern for Revenue Commissioners during her PhD.