Lecture 1: Introduction of this unit

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Lecturer: Dr Shaling Li
Accounting and Finance Department
PBS, University of Portsmouth
Introduction
 Background of this unit
 Aim of this unit
 Lecturers
 Main structure
 Textbook
 Course work
 Assessment
Dr S.Li, A&F Dept, UoP
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 Background knowledge
 Math (essential)
 Management (essential)
 Finance & investment (relevant)
 Career evidence
 A day in a life: a financial manager
(http://www.youtube.com/watch?v=Ui2YdIKL9kY&feat
ure=related)
Dr S.Li, A&F Dept, UoP
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Aims of this Unit
 To 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.
Dr S.Li, A&F Dept, UoP
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Lecturers
 Course 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
Firm Value
Financial
management
Investment
decisions
Financing
decisions
Dr S.Li, A&F Dept, UoP
Distribution
decisions
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Textbook
 1. 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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Assessment
 Course work: 40%
 Exam: 60%
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Exam
Examination paper will consist of two parts.
 Part A (50 marks)
 compulsory
 multiple choice questions + short-answer questions
 Part B (50 marks)
 choose 2 out of 4, each 25 marks.
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Course work
 The hand-in date for the assignment is Friday 4th
December 2009.
 Word limit: 2000 words (+/- 10%)
 Detailed information as below
Dr S.Li, A&F Dept, UoP
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More about course work
Part 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 work
Part 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.
Dr S.Li, A&F Dept, UoP
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More about course work
Part 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.
Dr S.Li, A&F Dept, UoP
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Seminar questions
 Well, 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 UK
 How to know the stock market price
Dr S.Li, A&F Dept, UoP
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