Finance Module Outline

Trinity Business School
Introduction to Finance
2023/24
Module Code: BUU22550
Module Name: Introduction to Finance
ECTS: This course carries 5 ECTS credits.
Lecturer: Dr Supriya kapoor

E-mail: [email protected]
Office Hours: By appointment (Please email to schedule)
Pre- Requisite: N/A
Available to exchange Students: Yes
MODULE DESCRIPTION
The Finance function is a critical aspect of any organisation. The success or failure of a firm
may be influenced significantly by how it manages its finances. It is therefore important for both
managers and employees to understand the principals of financial management for firms
operating in any industry. This course is designed to provide a comprehensive understanding of
financial management. It focuses on analysing and evaluating financial products using various
techniques. The module covers a range of topics related to financial management such as debt
policy, dividend policy, maximising corporate value and financial risk. Throughout this module,
students will become familiar with the basic concepts of corporate finance and financial
language used within academic literature and the media.
LEARNING AND TEACHING APPROACH

The lectures and material will serve as a guide for the students to deepen their understanding in
finance. In addition to the lecture slides, the students will be provided with supplementary
reading material including academic papers and case studies. This will allow them to create a
bridge between concepts of finance and how they can be applied in real businesses. Further, in
addition to the readings, there will be weekly problem sets that they will be solving with the tutor
The tutorials will aim to enhance their knowledge and critical thinking skills on the topics
covered.
MODULE-LEVEL LEARNING OUTCOMES

Having completed this module, the student should be able to:
1. Understand and examine the fundamental functions of the financial system

2. Apply financial theories and mathematical techniques to value bonds, stocks and other
risky assets
3. Appraise the different investments available to a business based on capital budgeting
tecjniques
4. Understand the concept of risk and return and the importance of managing the relation
between the two in corporate decision-making
5. Understand the basic elements of investment, financing, capital structure, management of
working capital and dividend decision processes.
RELATION TO DEGREE
Understanding finance is an essential element for any business and is an essential module of any
degree in business. This is an introductory module to provide students the fundamentals and key
concepts of corporate finance.
WORKLOAD
Content Indicative Number of Hours
Lecturing hours 22
Preparation for lectures 8
Individual assignment 25
Reading of assigned materials and active 50
reflection on lecture and course content and
linkage to personal experiences
Final exam preparation 20
Total 125
TEXTBOOKS AND REQUIRED RESOURCES

The recommended textbook for this module is:
Brealey, R. Myers, S. and Marcus, A. Fundamentals of Corporate Finance, McGraw-Hill.

Any recent edition of this textbook will suffice. Alternatively, the college library contains many
other excellent textbooks on Corporate Finance which can be referred to for extra reading.
Student preparation for the module

Throughout the module, I will be introducing extra reading material including case studies and
academic articles corresponding to topics covered in the module.
COURSE COMMUNICATION
Please note that all course related email communication must be sent from your official
TCD email address. Emails sent from other addresses will not be attended to.
ASSESSMENT
The assessment for this course is split between continuous assessment and final exam. The
breakdown is as follows:
Continuous assessment: Term tests – 30%

Final exam – 70%
The term tests which must be completed online in the allocated timeframe. Students unable to
complete a test for medical reasons must present a medical certificate to their college tutor.
Students who fail the module will need to submit a supplemental final assessment. The
supplemental assessment will count for 100% of the grade.
Attendance at lectures and tutorials is required, any student who attends less than two thirds of
lectures and tutorials may be deemed non-satisfactory as per college regulations and may not be
allowed to sit the final exam.
https://www.tcd.ie/undergraduate-studies/academic-progress/attendance-course-work.php
MODULE SCHEDULE
Wee Topic Book Chapters.

k of Readings will be
Term added on Blackboard
1  Introduction to Finance Brealey at al.
Introducin
 Time Value of Money, Chapters 1 & 5

Concepts
g Core
Compounding and Discounting

2  Annuities and Perpetuities Chapter 5 & 6
 Bonds
3  Bond Valuation Chapter 6 & 7
Ca
lcul
 Equity
4  Equity Valuation Chapter 7
ating Financing
 Capital Budgeting
5  NPV and other techniques Chapter 8 & 9
Costs
 Cashflow Analysis & DCF
6  Return and Risk in Finance Chapter 11
 Diversification & the CAPM Chapter 12 & 13
7 Reading Week
8  Cost of Debt and Equity Chapter 13 & 16
Budgetin
Capital
 WACC
 Chapter 13 & 16
g
9 Cost of Debt and Equity

 The Cost of Capital
10  Debt Policies Chapter 17
 Working Capital Management
Dividend
 Dividend Policy I Chapter 10

Policy
11
 Dividend Policy II
12  Evidence on Dividend Policies Chapter 10
Module Round-up
Introducing Core Concepts:

The early lectures will serve as an essential introduction to the core concepts of this module,
discussing the main areas of focus in corporate financial management, and introducing the main
types of financial calculations used in corporate finance. It is very important that students fully
understand the calculations covered in this part of the course, such as present and future values,
compounding, annuities and perpetuities, real and nominal interest rates. These methods are
used throughout the module.
Financing Costs and Capital Structure:

This section introduces bonds, how they are priced and traded and the main risk factors that
affect their price and yield. Credit rating agencies and their impact on the cost of issuing debt
are also discussed. We then discuss features of equities and equity markets. We focus on how to
analyse investments in terms of risk and return, and introduce the Capital Asset Pricing Model
(CAPM). We value shares using two pricing models: the dividend discount model and the
CAPM. We calculate the cost of debt and equity of a firm and combine them to calculate the
firm’s cost of capital. We discuss the topic of capital structure (the firm’s mix of debt and
equity). Various theories on a firm’s capital structure are critiqued and some conclusions drawn
on the factors that should influence a firm’s debt-equity ratio.
Capital Budgeting:
This section covers the topic of capital budgeting, and the methods used by firms to evaluate
investment projects. We analyse investment projects using methods such as Net Present Value,
the Internal Rate of Return, Payback methods and the Profitability Index. We also discuss which
cashflows should be included in capital budgeting calculations, and types of project analysis.
We also cover working capital management and the issues involved in trying to manage short
term cashflows.
Dividend Policy:
Finally we discuss how the firm rewards its investors. We evaluate the different methods that
firms use to return value to shareholders, share buybacks and cash dividends. We examine the
advantages and disadvantages to the firm and the investors of paying dividends, and we discuss
different models of dividend policies.
BIOGRAPHICAL NOTE:
Dr Supriya Kapoor is an Assistant Professor of Finance and Programme director for MSc. In
Financial Risk Management at the Trinity Business School, Trinity College Dublin. Prior to this,
she was a tenured Assistant Lecturer in the College of Business at Technological University
Dublin (TU Dublin) from 2019- 2022.
Supriya holds a PhD in Economics from University College Dublin and MSc in Economics from
Trinity College Dublin. Her research interests are at the intersection of finance and
macroeconomics with an emphasis on the role of financial institutions and monetary policy. She
has published her research in international peer-reviewed journals including Journal of Banking
& Finance and Small Business Economics. Her latest research outputs focus on quantitative
assessment of unconventional monetary policies, their impact on asset prices, balance sheets,
banking stability and green banking. She has successfully collaborated on projects with
researchers from Central Bank of Ireland, Banque de France, Sveriges Riksbank, Bank of
Lithuania, among others.
Supriya also has professional experience in the industry as she has worked as a consultant for
Irish Tax Institute and economics intern for Revenue Commissioners during her PhD.

Finance Module Outline

Uploaded by

Copyright:

Available Formats

Finance Module Outline

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Finance Module Outline

Uploaded by

Copyright:

Available Formats

Trinity Business School

Module Code: BUU22550

Module Name: Introduction to Finance

ECTS: This course carries 5 ECTS credits.

Lecturer: Dr Supriya kapoor

Pre- Requisite: N/A

Available to exchange Students: Yes

LEARNING AND TEACHING APPROACH

MODULE-LEVEL LEARNING OUTCOMES

1. Understand and examine the fundamental functions of the financial system

TEXTBOOKS AND REQUIRED RESOURCES

Brealey, R. Myers, S. and Marcus, A. Fundamentals of Corporate Finance, McGraw-Hill.

Student preparation for the module

Continuous assessment: Term tests – 30%

Wee Topic Book Chapters.

 Time Value of Money, Chapters 1 & 5

Compounding and Discounting

9 Cost of Debt and Equity

 Dividend Policy I Chapter 10

Introducing Core Concepts:

Financing Costs and Capital Structure:

You might also like