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Unit of study_

FINC5001: Foundation in Finance

This unit introduces foundational concepts in capital markets and corporate finance, equipping students for further studies in the discipline. The firm and the role of financial institutions are explored before developing important skills in financial mathematics. The unit then moves to the valuation of tradable securities and their pricing in the capital markets. The decisions firms make around capital structure and payout policy are studied. The unit concludes with an exploration of information and market efficiency. The tools of finance allow decision makers to navigate risk and uncertainty.

Code FINC5001
Academic unit Finance
Credit points 6

At the completion of this unit, you should be able to:

  • LO1. Compute the risk-adjusted present value and future value of single cash flow streams, mixed cash flow streams, annuities and perpetuities
  • LO2. Understand the contemporary institutional environment of financial markets and key participants.
  • LO3. Discuss and explain the relationship between various measures of risk and return and apply the Capital Asset Pricing Model (CAPM).
  • LO4. Discuss and explain the concept of market efficiency and the role of information in financial markets.
  • LO5. Value bonds and stocks through the principles of valuation.
  • LO6. Solve capital budgeting problems and describe and integrate them into practical considerations.
  • LO7. Explain the impact of investment, financing and dividend decisions on firm value.
  • LO8. Apply and integrate key financial concepts to real-world problems.
  • LO9. Operate and contribute in a team-based structure.