What's Included:

• In-depth notes: Comprehensive, easy-to-follow notes on all essential topics.
• Sample exam questions: Assess your grasp of BAFN200’s content with sample questions that emulate the structure and complexity of the actual final exam.
• Solutions and explanations: Thorough, step-by-step solutions and explanations for each exam question, assisting you in pinpointing areas that need improvement and solidifying your comprehension.
• Exam hints and tips: Helpful strategies to improve your performance on the actual exam.

Benefits:

• Enhance your exam performance with practice questions that closely imitate the actual exam format and difficulty.
• Save time and energy with this comprehensive study material, tailored specifically for BAFN200 students.

Financial decision-making skills is a knowledge set that is essential, not only for finance professionals, but also for employees at any level. Everybody needs some basic finance knowledge for decisions involving borrowing money, making investments, comparing alternative financing alternatives, etc. This unit is designed to develop students' understanding of the finance function and help them make more informed financial management decisions using real-life business finance practices.

This unit provides students with an opportunity to develop an understanding of concepts, techniques, and practices that are needed to make financial decisions in a competitive business environment. Students will gain knowledge of the major issues in business finance and the models and theories that have been developed to help us understand how the financial world works. The focus of the unit is on common investment and financing decisions and related financial concepts such as the time-value of money and valuation of different types of securities. The nature of investment decisions will be addressed, including topics such as capital budgeting, portfolio theory and the capital asset pricing model. Having considered how businesses invest their funds, students will learn how those funds are financed and their costs, including the cost of capital, capital structure decisions, dividend policy and current assets management.

The unit aims to equip students with theoretical and practical knowledge about contemporary financial management practices and tools utilized to make financial management decisions. Another notable aim of the unit is to develop an understanding of the role of the finance function including the role of environmental, social and governance (ESG) practices on financing decisions.

✔ Learning outcomes:

• Examine the various sources of financing to an organisation, including bank financing, bonds, equity, and treasury markets
• Apply capital budgeting techniques demonstrating autonomous and group work skills
• Estimate the cost of capital and analyse the trade-offs between debt and equity in the capital structure.
• Identify financial and non-financial (i.e., ESG) risks and apply risk management techniques to manage those risks in an organisation
• Evaluate how organisations make investment and distribution decisions