Principles Of Finance
- Management Sciences
- 700 level
- 2 credit units
- 244 pages
- 22 units
This course introduces the principles of finance, focusing on the functions and duties of a financial manager within a business organization. It explores the relationship between finance and other organizational departments, covering topics such as source and application of funds, capital formation, and management of financial resources. The course aims to provide a foundational understanding of financial management essential for decision-making in various sectors.
About this course
- Difficulty
- Intermediate
- Study hours
- 150 hours
- Maths
- Intermediate
- Content
- Theoretical, case study
- Practical work
- No
- Tutor Marked Assignments
- Final Examination
What you'll read
The real module and unit structure of BFN715, taken from the course material NOUN publishes.
- UNIT 1 – INTRODUCTION TO FINANCEPage 10
- UNIT 2 - RELATIONSHIP BETWEEN FINANCE AND OVERALL OPERATIONS OF AN ORGANIZATIONPage 24
- UNIT 3 - SOURCES OF FINANCE: SHORT-TERM SOURCESPage 29
- UNIT 4 - SOURCES OF FINANCE: LONG –TERM SOURCESPage 35
- UNIT 1: CAPITAL AND MONEY MARKETSPage 205
- UNIT 2: CREDIT CREATIONPage 214
- UNIT 3: CREDIT AND CREDIT INSTRUMENTSPage 226
- UNIT 4: MONETARY POLICYPage 238
One paragraph, so you can see how it reads
BFN715 · Unit 4: Monetary Policy
The final examination in the course will attract the remaining 70% of the total course grade. You are advised to note that all areas of the course will be assessed during the examination.
What you should be able to do
- Define finance and its applications
- Classify sources of funds for a firm
- Explain the concept of financial management
- Prepare sources and uses of funds statement
- Discuss cash management techniques
What it prepares you for
- Financial Analyst
- Financial Manager
- Investment Banker
- Accountant
- Auditor
- Banking
- Investment Management
- Corporate Finance
- Accounting
- Auditing
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 3: Capital Formation and Types of Capital
Unit 4: Applications of Present Value and Compounding Techniques
Requires understanding of complex calculations and application of formulas to real-world financial scenarios.
- Module 4: Profit Planning and Control
Unit 3: Leasing and Venture Capital
Involves understanding of complex financial instruments and their impact on firm profitability.
A suggested way through it
13 weeks, about 26 hours in total. Yours will differ.
- Week 1Module 1: Introduction to Finance
Unit 1: Introduction to Finance · 2 hours
Define finance. Explain finance function. Discuss financial management objectives and roles. Identify functions of a financial manager.
- Week 2Module 1: Introduction to Finance
Unit 2: Relationship between Finance and overall Operations of an Organization · 2 hours
Discuss the aims of finance functions. Explain acquiring sufficient funds. Explain proper utilization of funds. Describe maximizing firm's value. Discuss finance and overall operations.
- Week 3Module 1: Introduction to Finance
Unit 3: Sources of Finance: Short-term sources · 2 hours
Classify sources of funds. Explain bank overdrafts. Describe accounts payable. Explain bill finance. Discuss deferred tax payment. Explain factoring.
- Week 4Module 1: Introduction to Finance
Unit 4: Sources of Finance: Long-term sources · 2 hours
List and discuss long-term sources of funds. Explain common stock. Discuss preference shares. Explain debenture stocks. Describe lease financing.
- Week 5Module 2: Sources and Application of Funds
Unit 1: Sources and Application of Funds · 2 hours
Explain sources of funds. Explain uses of funds. Prepare sources and uses of funds statement. Differentiate between sources and application of funds.
- Week 6Module 2: Sources and Application of Funds
Unit 2: Management of Financial Resources · 2 hours
Explain resources management. Explain financial resources management. Apply financial resources management in firms. Discuss challenges of financial resource management.
- Week 7Module 2: Sources and Application of Funds
Unit 3: Working Capital Management · 2 hours
Explain the concept of working capital. Distinguish between working capital and working capital management. Discuss cash management techniques. Explain management of account receivable.
- Week 8Module 2: Sources and Application of Funds
Unit 4: Share Valuation · 2 hours
Discuss the advantages and disadvantages of financing with preferred stock. Explain the valuation of preferred stock. Discuss the benefits and costs of ordinary share ownership. Discuss share valuation models.
- Week 9Module 3: Capital Formation and Types of Capital
Unit 1: Capital Formation and Types of Capital · 2 hours
Discuss capital and capital formation. Identify and explain domestic sources of capital formation. Identify and explain external sources of capital formation. Mention and explain various types of capital.
- Week 10Module 3: Capital Formation and Types of Capital
Unit 2: Financial Decision and Liquidity · 2 hours
Discuss liquidity planning using cash budget. Identify the requirements for preparation of cash budget. Prepare a cash budget.
- Week 11Module 3: Capital Formation and Types of Capital
Unit 3: Present Value of Money and Compounding Techniques · 2 hours
Explain time value of money. Discuss present value of future sum. Explain the present value of a single amount. Describe present value of an annuity. Explain mixed streams of cash flows.
- Week 12Module 3: Capital Formation and Types of Capital
Unit 4: Applications of Present Value and Compounding Techniques · 2 hours
Determine the deposits needed to accumulate a future sum. Discuss loan amortisation. Determining interest rate. Determine growth rates. Determine bond values. Discuss perpetuities.
- Week 13Module 3: Capital Formation and Types of Capital
Unit 5: Financial Planning and Control · 2 hours
Forecast finance need using percent of sales method. Prepare pro forma statements.
Preparing for the exam
- Focus on understanding the formulas for calculating present and future values.
- Practice preparing cash budgets and pro forma statements.
- Review the different types of financing and their implications.
- Understand the concepts of operating and financial leverage.
- Study the various share valuation models and their applications.
Questions students ask about this course
What is BFN715 about?
This course introduces the principles of finance, focusing on the functions and duties of a financial manager within a business organization. It explores the relationship between finance and other organizational departments, covering topics such as source and application of funds, capital formation, and management of financial resources. The course aims to provide a foundational understanding of financial management essential for decision-making in various sectors.
How many units does BFN715 have?
BFN715, Principles Of Finance, has 22 units across 5 modules, over 244 pages of course material. You can read it one unit at a time.
How many credit units is BFN715?
BFN715 carries 2 credit units, at 700 level in Management Sciences.
Is BFN715 hard?
BFN715 is rated intermediate level, with intermediate mathematical content. It is mostly theoretical and case study work.
How long does BFN715 take to study?
About 150 hours of study, spread across its 22 units.
How is BFN715 assessed?
BFN715 is assessed by Tutor Marked Assignments and Final Examination.
What can I do with BFN715?
Financial Analyst, Financial Manager, Investment Banker, Accountant and Auditor.