Module catalogue: AC6065

AC6065 - Financial Management (2026/27)

Module specification

Module approved to run in 2026/27

Module title

Financial Management

Module level

Honours (06)

Credit rating for module

School

Guildhall School of Business and Law

Total study hours

150

105 hours	Guided independent study
9 hours	Assessment Preparation / Delivery
36 hours	Scheduled learning & teaching activities

Assessment components

Type	Weighting	Qualifying mark	Description
Coursework	40%		Individual Report (1000 words)
Examination	60%		Unseen Examination (3 Hours)

Running in 2026/27

(Please note that module timeslots are subject to change)

No instances running in the year

Module summary

The purpose of the module is to develop students' critical thinking and knowledge of financial management. It will also examine theoretical frameworks, analytical techniques, and real-world applications of corporate investment and financial decision-making in a dynamic capital market and competitive business environment and to prepare students for employability.

The principal aims of this module are as follows:
1.    You will learn an integrated understanding of corporate finance theory and contemporary practice, including valuation, M&A, takeovers, and venture capital.
2.   You will develop the technical modelling and analytical skills expected of graduate analysts incorporate development, investment-banking, private-equity and FP&A roles.
3.    You will acquire the ethical norms, professional conduct, and communication styles that propel early career success and employability.
4.    You will be prepared to analyse finances with honesty, precision, and openness.

Syllabus

. Corporate objectives: corporate strategy and shareholder wealth
   maximization agency costs, stakeholders, and corporate governance
. Corporate valuation: alternative models; valuing equity as an
   option, value-based management including complex investment
   appraisal techniques:
- Payback and discounted payback
         -    Calculating ARR
         -    Calculating the NPVs, the IRR
         -    Adjusting for inflation and taxation in DCF
         -    Capital rationing
         -    Sensitivity analysis
         -    Lease, buy back and replacement of assets
. Discuss financial and other objectives in not-for-profit organisations
and the importance of value for money evaluation. (LO1)

. Sources of funds from: banks and the capital markets:
Equity finance
Debt finance
Lease finance
Venture capital (LO2)

. Cost of capital and capital structure theories and policies in the light
of Modigliani-Miller propositions, agency costs and signaling
The use dividend growth model
CAPM, beta factors and adjustments for project specific risk
Estimating cost of debts for different types of debt
The calculation of WACC
Traditional view of dividend policy
Modigliani and Miller views on capital structure
Trade-off theory of capital structure
Pecking order theory and selection of finance (LO3)

.    Dividend and distribution decisions in the light of Modigliani-Miller
     propositions, agency costs, signaling and corporate life cycle
.    The nature of finance for small and medium sized entities (SMEs)
      and their peculiar challenges

. Managing foreign currency risks and money markets
Discussion of different foreign exchange risk
Translation risk, transaction risk and economic risk
Using traditional methods versus derivatives to manage currency risks
Understanding various hedging techniques to manage interest rate risk
The traditional methods and using derivatives

. Working capital management
Discussion of the importance of working capital
Managing accounts receivables and accounts payable
Cash operating cycle
Inventory management
Capital funding strategies, using factoring and associated risk (LO4)

Balance of independent study and scheduled teaching activity

Teaching will take the form of a 2-hour lecture and a 1-hour seminar programme.

The lecture will be used to explain the key issues of the topics and themes in financial management and corporate finance.

The seminar programme will concentrate on problem-solving exercises and analyses of relevant cases. Questions will be pre-distributed to allow students to attempt answers in advance of the seminar.

The learning and teaching materials will be available ahead of the lecture and seminar sessions on VLE (Weblearn) so students can read and attempt to solve the questions before coming to the class. At the end of each seminar session students will have some questions to work on and reflect their learning in the next lesson.

Learning outcomes

LO1: Critically evaluate core corporate-finance theories and apply them to capital-structure, investment-appraisal and payout decisions.
LO2: Design, build and validate full valuation models (DCF, DVM and Free cash flows) and interpret outputs for decision-making.
LO3: Analyse, capital structure, cost of capital and communicate recommendations on M&A, takeover and venture-capital transactions and distribution decisions to professional stakeholders.
LO4: Exhibit ethical judgement in managing risks, working capital and meticulous attention to detail, collaborative professionalism and reflective practice consistent with early career finance roles.

Bibliography

Reading List Talis Link:
https://rl.talis.com/3/londonmet/lists/FDE4830D-6E72-DF01-D977-C834CA59A783.html

Essential reading: