ACCY6104

Module code

ACCY6104

Module title

Introduction to Finance

Prescription

The aim of this course is to develop the knowledge, skills, and competencies to apply business finance techniques.

Programmes

BI1401
BI1506
BS7000
TP4775

NZQA Level

Level 6

NZQA Credits

15

Delivery method

Web-Supported

Learning hours

Total learning hours: 150

Resources required

Learning Outcomes: 1. Describe the role of the finance and treasury functions and the financial environment in which organisations operate.
2. Apply capital budgeting techniques to evaluate investment decisions.
3. Evaluate sources of finance and associated risk.
4. Evaluate measures of return and distribution options.
Content: LO1
• Shareholder wealth maximisation and the role of the Financial Manager
• Working capital management:
o accounts receivable management
o inventory management
o cash management
o accounts payable management

LO2
• Capital budgeting techniques
o time value of money
o Net Present Value (NPV)
o Internal Rate of Return (IRR)
o payback (standard and discounted)
o accounting rate of return
• Critical factors influencing investment decisions
o capital rationing or unlimited funds
o independent or mutually exclusive projects
o expansion or replacement projects

LO3
• Accounting for risk on investment decisions
o expected return
o standard deviation
o sensitivity/scenario analysis
o Risk Adjusted Discount Rate (RADR)
• Finance options
o short term
o long term
o lease or buy
o debt and equity finance
o financial instruments
o bonds and debentures
o futures
o options
o warrants
o convertible instruments
o SWAP contracts
• Cost of capital
o Weighted Cost of Capital (WACC)
o Capital Asset Pricing Model (CAPM)
• Capital structure
o leverage
• Optimal capital structure
o business risk
o financial risk
• Risk Management
o foreign exchange management
o interest rate risk

LO4
• Distributions and dividends
o types of distributions
o taxation of distributions
Teaching and Learning Strategy: All learning and teaching activities as described in the approved programme and delivery documents are enabled for this course unless specified.
Basic of Assessment: Assessment in this course employs an achievement-based grading scheme. Learners will be advised of all matters relating to summative assessment prior to the start of the course.
Assessment Criteria: The portfolio is comprised of multiple components. Learners need to provide sufficient evidence against all learning outcomes and gain an overall mark of at least 50% in order to pass this module.

(A minimum of 50% of the portfolio assessment activities will be controlled (supervised/observed)

ACCY6104 – Introduction to Finance