MODULE DESCRIPTORS FOR
MANAGEMENT DEVELOPMENT PROGRAMME
FINANCIAL MANAGEMENT
Financial Modelling
Managerial Finance
Financial Markets and Investment Management
Financial Accounting and Reporting
LO N D O N
SCHOOL
OF
BUSINESS
&
FINANCE
MODULE DESCRIPTORS FOR MANAGEMENT DEVELOPMENT PROGRAMME
FINANCIAL MANAGEMENT
Module Name
Financial Modelling
Code / Type
F5CFM
Programme
Management Development Programme (Financial Management)
Academic Year
2011-2012
Contact Hours
30 hours
Module
Summary
Financial modelling techniques allow users to improve the reliability, quality and timeliness of their decision making. Modelling
techniques are now used in many different areas, such as investment appraisal, capital planning, budgeting, valuation, and
financial analysis and forecasting.
Core
With a step-by-step approach, this course will guide you through the various techniques, providing you with a comprehensive
understanding of advanced modelling, as well as how each technique can practically be applied through the use of Excel.
Therefore, the aim of this module is to provide a comprehensive understanding of the ways in which Excel spreadsheets can
be used to assist finance professionals in analysis of data, application of financial models, decision support, and effective
presentation of information for reports.
This module will introduce the learner to the range of tools and techniques available for a range of financial applications. It will
also develop and reinforce rules and principles for model design and building that ensure robustness, and ease of transferability
between users.
Indicative
Content
1. Introduction to Financial Modelling
1.1. Overview of Financial Modelling applications
1.2. Introduction to model building.
2. Financial Model development
2.1 Rules and guidelines to ensure quality models
2.2 Formula development
3. Refining Financial models
3.1. Use of functions; Formatting
3.2. Scenario and sensitivity analysis; Automating with macros
4. Applications of Financial Modelling
4.1. Forecasting; Variance analysis; Cost of capital; DCF appraisal; Company valuation; Portfolio analysis
4.2. Analysing performance; Breakeven analysis; Cost of capital; Investment analysis; Risk Analysis; Risk management
Learning
Objectives
On completion of this module you will be able to:
Assessment
Strategy
The skills related to the module will be assessed as part of the learning outcomes identified above.
Reading Guide
KDay, A. (2007), Mastering Financial Modelling in Microsoft Excel: A Practitioners Guide to Applied Corporate Finance.
2nd edition, Financial Times/ Prentice Hall. ISBN-10: 0273708066
1. Describe how the tools and techniques of financial modelling can be applied in analysis, calculation, and presentation of
financial data
2. Explain how to introduce robustness and quality into model building
3. Interpret the results produced by financial spreadsheets
4. Design spreadsheets which are easy to use, reliable and informative for a range of users
Individual Assignment (100%):
Report based on detailed investigation of an organisation and the design, testing and evaluation of financial models/techniques.
Benninga, S. (2008), Financial Modelling, 3rd Edition, The MIT Press. ISBN-10: 0262026287
LO N D O N
SCHOOL
OF
BUSINESS
&
FINANCE
MODULE DESCRIPTORS FOR MANAGEMENT DEVELOPMENT PROGRAMME
FINANCIAL MANAGEMENT
Module Name
Managerial Finance
Code / Type
F5CMF
Programme
Management Development Programme (Financial Management)
Academic Year
2011-2012
Contact Hours
30 hours
Module
Summary
The aim of the module is to equip learners with the knowledge, skills, and competencies to understand the importance of
investment and financing decisions in the creation and capture of value and the development and maintenance of sustainable
competitive advantage.
Core
In this respect, the objective is to provide an essential understanding of corporate finance structure, including knowledge of the
instruments used by companies to raise finance to maximise corporate value. Students will appreciate the techniques used in
both short-term and long-term financial decision making.
Indicative
Content
1. Financial and Management Accounting
1.1. Financial statements
1.2. Budgeting
2. Investment Appraisal
2.1 Traditional Investment Appraisal techniques
2.2 Discounted Cashflow investment appraisal techniques
3. Corporate Investment Categories
3.1. Held to Maturity; Held For Trading; Available for Sale; Designated at Fair Value
3.2. Reclassification of Investments; Impairments
4. Capital Structure
4.1. Sources of Finance and Cost of Capital
4.2. Capital Structure theory
Learning
Objectives
On completion of this module you will be able to:
Assessment
Strategy
The skills related to the module will be assessed as part of the learning outcomes identified above.
1.
2.
3.
4.
Summarise key principles, trends and tools in accounting and corporate finance.
Identify effective approaches to the analysis of corporate finance structure
Discuss the practical application of models and theories to decisions on corporate financing.
Compare the economic benefits of various types of financing.
Individual Assignment (100%):
Report based on detailed investigation of an organisation and the design, testing and evaluation of financial models/techniques.
Reading Guide
Berk J. and DeMarzo P. (2011), Corporate Finance: The Core, 2nd Edition, Global Edition, Pearson.
Watson D. and Head A. (2011), Corporate Finance: Principles and Practice, 6th Edition, Financial Times/ Prentice Hall.
Arnold G. (2009), Corporate Financial Management, Prentice Hall. 4th Edition. Pearson Ed.
LO N D O N
SCHOOL
OF
BUSINESS
&
FINANCE
MODULE DESCRIPTORS FOR MANAGEMENT DEVELOPMENT PROGRAMME
FINANCIAL MANAGEMENT
Module Name
Financial Markets and Investment Management
Code / Type
F5CFMIM
Programme
Management Development Programme (Financial Management)
Academic Year
2011-2012
Contact Hours
30 hours
Module
Summary
This module will provide an insight into the economic, market and ethical contexts in which financial institutions operate.
Indicative
Content
1. Overview of the Financial System and The Money Markets
1.1. Function of Financial Markets; Structure of Financial Markets; Internationalization of Financial Markets; Types and function
of Financial Intermediaries
1.2. The Money Markets Defined; The Purpose of Money Markets; Participants in Money Markets; Money Market Instruments;
Comparing Money Market Securities
Core
Students will be able to apply general valuation methods to stock, money, bonds (fixed-income securities), foreign exchange and
derivatives markets.
2. Bond Market
2.1 Purpose of the Capital Market; Capital Market Participants; Capital Market Trading
2.2 Types of Bonds; Pricing and yields of Bonds; Investment in Bonds; Term structure of interest rates; Risk structure
of interest rate
3. Equity Markets
3.1. Investing in Stocks; Computing the Price of Common Stock; How the Market Sets Security Prices; Errors in Valuation
3.2. Stock Market Indexes; Buying Foreign Stocks; Regulation of the Stock Market
4. Foreign Exchange Markets and Derivatives Markets
4.1. Foreign Exchange Market; Exchange Rates; Explaining Changes in Exchange Rates Foreign Exchange Market Parties;
Carry Trade
4.2. Overview of derivatives markets; The Concept of Hedging; Forward Markets; Financial Futures Markets; Option Markets;
Swap Markets; Credit Derivatives
Learning
Objectives
On completion of this module you will be able to:
Assessment
Strategy
The skills related to the module will be assessed as part of the learning outcomes identified above.
1.
2.
3.
4.
Summarise the functions of financial markets and the intermediary role of financial institutions.
Explain the behaviour of financial institutions and capital markets.
Assess the reasons for the development of financial markets and new financial instruments.
Categorise different valuation methods commonly used in equity, bond and derivatives markets.
Individual Assignment (100%):
Report based on detailed investigation of an organisation and the design, testing and evaluation of financial models/techniques.
Reading Guide
Mishkin F., Eakins S. (2011), Financial Markets and Institutions, Global Edition. Pearson Ed. 7th Edition.
Fabozzi F., Modigliani F., Jones F. (2009), Foundations of Financial Markets and Institutions, Pearson Ed. 4th Edition.
Howells P., Bain K. (2007), Financial Markets and Institutions, Pearson Ed. 5th Edition.
LO N D O N
SCHOOL
OF
BUSINESS
&
FINANCE
MODULE DESCRIPTORS FOR MANAGEMENT DEVELOPMENT PROGRAMME
FINANCIAL MANAGEMENT
Module Name
Financial Accounting and Reporting
Code / Type
F5CFAR
Programme
Management Development Programme (Financial Management)
Academic Year
2011-2012
Contact Hours
30 hours
Module
Summary
The aim of the Financial Accounting and Reporting module is to provide a basic understanding of financial reporting rules
and common practice, and to provide students with the ability to interpret the financial statements of companies or financial
institutions from a financial analyst point of view.
Core
Students will learn about the regulatory, ethical and governance principles designed to maintain financial stability in major
financial markets, the practical application and effectiveness thereof; and the efficacy or otherwise of self-regulation
Indicative
Content
1. Consolidated Financial Statements
1.1. Statement of Financial Position; Statement of Comprehensive Income
1.2. Statement of Cash Flows
2. Financial Statement Analysis and Valuation
2.1 Financial Statement Analysis
2.2 Basics of Valuation using data from Financial Statements
3. Evaluating Financial Reporting Quality
3.1. Distinguishing Cash Bases from Accrual Bases of Accounting
3.2. Financial Reporting Quality Issues
4. Integration of Financial Statements Analysis Techniques
4.1. General integration of Financial Statements Analysis Techniques
4.2. Specific Integration of Financial Statements Analysis Techniques
Learning
Objectives
On completion of this module you will be able to:
Assessment
Strategy
The skills related to the module will be assessed as part of the learning outcomes identified above.
1.
2.
3.
4.
Identify rules and principles in the international accounting standards and financial regulations.
Demonstrate a detailed knowledge in the sphere of financial analysis.
Interpret accounting data and financial information to make basic investment decisions.
Demonstrate problem solving and analytical approaches to facilitate effective financial decision-making.
Individual Assignment (100%):
Report based on detailed investigation of an organisation and the design, testing and evaluation of financial models/techniques.
Reading Guide
Elliott B. and Elliott J. (2011), Financial Accounting and Reporting, Financial Times/ Prentice Hall, 15th Edition.
Revsine L., Collins D., Johnson W. B. & MittelStaedt F. (2011), Financial Reporting and Analysis, McGraw Hill Higher
Education, 5th Edition
LO N D O N
SCHOOL
OF
BUSINESS
&
FINANCE