FM212GC Half Unit
Principles of Finance (Spring Semester)
This information is for the 2020/21 session.
Dr James Clark
Dr Jojo Paul
This course is available with permission to General Course ‘Spring Semester’ students.
Students must have completed: one level 1 Economics course (either EC100 Economics A or EC102 Economics B), one level 1 Mathematics course and one level 1 Statistics course. In addition, students will also be expected to have a working familiarity with the content covered in the Michaelmas Term portion of FM212; students will be provided resources to review this material before commencing the course.
The course examines the theory of financial decision-making by firms and examines the behaviour of the capital markets in which these decisions are taken. The topics covered are the theory of capital budgeting under certainty in perfect and imperfect capital markets, sources of funds, basic theory of capital structure and the cost of capital, company dividend decisions, and risk management.
This course covers the same topics as the Lent Term portion of FM213 and FM212. Thus, both FM213 and FM212 are equivalent content-wise. However, compared to FM213, this course puts less emphasis on the underlying statistical theory and relies less on the use of mathematical methods. Nonetheless, the course is quantitative in nature, and familiarity with mathematical and statistical methods taught in first-year courses will be assumed.
21 hours of lectures and 10 hours of classes in the LT. 1 hour of classes in the ST.
There will also be workshops in LT.
Students are expected to produce written work for classes and to make positive contributions to class discussion.
Detailed course programmes and reading lists are distributed at the start of the course. Illustrative texts include:
- Principles of Corporate Finance by Richard Brealey, Stewart Myers, and Franklin Allen, McGraw-Hill Inc.
- Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson Global Edition.
Exam (100%, duration: 1 hour and 30 minutes) in the summer exam period.
Important information in response to COVID-19
Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.
Total students 2019/20: Unavailable
Average class size 2019/20: Unavailable
Capped 2019/20: No
Value: Half Unit
Personal development skills
- Problem solving
- Application of numeracy skills
- Commercial awareness