The course unit
is intended to equip the students with knowledge on the general financial
framework and the financial manager’s unique decisions that he/she s faced with in the
corporate entity. In particular, knowing that finance is a multicurrency, it
is fitting for the students to get knowledge and skills required to evaluate,
interpret and analyze financial information relevant for decision making. The
students should also be able to appreciate various theories in financial
management in the context of a corporation/firm such as capital structure and
dividend decision. The key areas of discussion shall be based on the gap
between theory and practice and the suspicion that perhaps the intuition of a finance
manager has accounted for issues that theory has long overlooked. The course
shall introduce the students to the conceptual links as manifested in the
efficient markets hypothesis and the no arbitrage conditions that arise in that thinking. Integrating the student's faith in learning will be encouraged so that holistic transformation is achieved at the end of the course.
Key areas are: Sources of finance and financial markets, application of time value of money, cost of capital, valuations of various securities, capital budgeting with inflation, risk and returns, portfolio theory, dividend theory, capital structure puzzle among others.
- Teacher: Dorothy Muthoka - Kagwaini