RGU: RGU Module: Finance Theory (BSM002)

Module Title
Finance Theory

Keywords
Efficient Market Theory, Pricing Model, Capital Structure, Corporate Control, Dividends

Reference

BSM002

SCQF Level

SCQF 11

SCQF Points

ECTS Points

7.5

Created

May 2002

Approved

November 2006

Amended

September 2010

Revision No.

Prerequisites for Module

None in addition to SCQF 11 entry requirment or equivalent.

Corequisite Modules

None.

Precluded Modules

None.

Aims of Module

To impart to the students the ability to critically assess the theories and principles of finance and develop these theories to analyse the behaviour of financial markets and institutions.

Learning Outcomes for Module

On completion of this module, students are expected to be able to:

1.	Analyse and discuss in depth the development of the various theories and models underlying finance.
2.	Critically assess and syntheise the theories and models of financial behaviour.
3.	Evaluate and apply the relevant theories to analyse problems and issues in finance.

Indicative Module Content

Efficient Market Theory, Capital Structure Theory, Agency Theory, Risk and Return, Portfolio Theory, CAPM, Arbitrage Pricing Theory, Dividend Policy, Corporate Control, Term structure of Interest Rates, Behavioral Finance, Derivative Pricing.

Indicative Student Workload

Contact Hours	Full Time	Part Time
Lectures	36	36
Assessment	4	4
Directed Study
Directed Study	31	31
Private Study
Private Study	79	79

Mode of Delivery

This is a lecture-based course supplemented by tutorials and directed learning.

Assessment Plan

	Learning Outcomes Assessed
Component 1	1,2
Component 2	2,3

Component 1 is a mid-term examination.

Component 2 is final examination.

Indicative Bibliography

1.	BERK, J. and DeMARZO, P., 2009. Corporate Finance; The Core. Pearson/Prentice Hall
2.	Pike, R. and Neale, Bill., 2009. Corporate Finance and Investment, Decisions and Strategies. 6th Ed. FT Prentice Hall
3.	Lumby, S. and Jones, C., 2011. Corporate Finance, Theory and Practice. 8th Ed. South-Western
4.	COPELAND, WSETON and SHASTRI., 2005. Financial Theory and Corporate Policy. 4th Ed. Pearson Addison: Wesley.
5.	GRINBLATT, M and TITMAN, S., 2002. Financial Markets and Corporate Strategy. 2nd ed. McGraw Hill.