Principles of Finance

This subject introduces students to the key concepts of finance. Topics include: time-value-of-money, risk and return, present value, capital budgeting, diversification, asset allocation, capital asset pricing model, leverage, risk management and the types and sources of financing. This subject is the first in the sequence of finance subjects offered within the faculty and has a coverage and treatment of material which is suitable not only for students wishing to pursue further studies in finance but also for students from other disciplines who are interested in a single course in finance.

• 1Use financial mathematics to solve basic financial problems
• 2Apply alternative capital budgeting techniques for project evaluation purposes
• 3Explain the role of risk and return in the asset allocation decision and the pricing of risky assets
• 4Distinguish between the different sources of financing including short term debt, long term debt and equity
• 5Discuss the issues and choices involved in a firm’s capital structure decision
• 6Discuss the issues and choices involved in a firm’s distribution decision
• 7Explain how options can be used to manage basic financial risks