MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM

Leeds Metropolitan University November 2006

1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

12 Sponsoring Scheme/School/Subject Faculty of Business & Law

Area/Teaching and Research Group
Strategy & Business Analysis Subject Group
13 Subsidiary Business Centre (SBC) code FE

14 Module Leader Name: Hugh Meyer

Contact details: Bronte Hall, Room 202
Email: h.meyer@leedsmet.ac.uk
Tel: 0113 812 7344
15 Module introduced as: (delete as appropriate) Minor Modification (updating onto new template)

16 Does this module replace any existing No

modules?

17 Programmes for which this module is core MSc Finance

(accurate approved titles and level)
18 Programmes for which this module is elective FBL Postgraduate Scheme
(accurate approved titles and level)
19 Pre-requisites or co-requisites None

20 Modules for which this module is a pre- None

requisite
21 Professional, statutory or regulatory body None
requirements
22 Attendance requirements agreed at approval No formal attendance requirements

23 Estimated student numbers TBC

24 HESA Cost Centre 27 Business & Management Studies

25 JACS Code N300 Finance

26 Delivery type(s) Standard

27 Module delivery partner(s) None

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 MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM
Leeds Metropolitan University November 2006
1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

28 Module aims
The module aims to develop and evaluate key analytical skills in the area of
Financial Decision Making. It will provide students with a body of analytical tools
and knowledge applicable to decision scenarios in the Finance Sector so as to
assist the financial manager in making decisions.

The module will of necessity integrate and develop key basic and IT skills and
apply them in a financial decision making setting, thus reinforcing managerial
adaptability and effectiveness.

29 Learning outcomes
To understand, critically analyse, evaluate and explain:

• the relevance and use of risk analysis and decision theory in assisting
financial decision making under conditions of risk and uncertainty;

• key concepts and decision criteria, such as expected monetary value,

which can be applied when encountering risk and in producing informed
and balanced decisions in the context of strategic investment decision
making;

• the role of key forecasting methods and techniques in enhancing and

informing corporate financial management.

• how a technique, such as linear programming, can assist financial

decision making in areas such as optimal resource allocation,
diversification, portfolio analysis and fund management when
attempting to arrive at an optimal portfolio which balances risk against
maximum returns.

To be able to:

• apply the basics of an econometric approach to financial forecasting

and find the determinants & causal factors of major financial macro and
microeconomic variables;

• apply standard forecasting techniques and models to problem areas in

finance which require accuracy and sophistication in producing future
financial predictions;

• critically apply a linear programming case-study orientated approach to

selected application areas to inform financial decision making in an
attempt to provide optimal decisions;

• select and apply appropriate computer software in analysing all the

decision scenarios noted above and to be able to interpret relevant
computer output critically.

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 MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM
Leeds Metropolitan University November 2006
1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

30 Key Skills developed

Postgraduate Skills and Competencies
and/or assessed in
the module Opportunity
Assessed
to Develop
(Please specify Academic Skills
which are developed Research Capability Yes
and which are Critical Thinking Yes
assessed)
Problem Solving Yes
Creativity Yes
Knowledge Management Yes
Self Management Skills
Critical Self Awareness Yes
Manage Change/Adaptability Yes
Organisation and Planning Yes
Career Awareness
Commitment to Lifelong Learning Yes
Communication Skills
Written Communication Yes
Oral/Visual Communication Skills Yes
Active Listening Yes
CIT Skills Yes
Numeracy Skills Yes
Interpersonal Skills
Citizenship Yes
Team Skills Yes
Leadership Yes
Networking
Negotiating

31 Indicative content
Quantification and Evaluation of risk using Decision Theory: Expected Monetary
Value and other criteria for decision making; decision tables and decision trees
as methods for decision making under conditions of risk. Case Study
applications involving Strategic Investment Decision Making.

Linear Programming as an approach to optimal decision making in the following

indicative case-study areas:-

- portfolio selection (objective: maximisation of expected returns vs.

minimisation of risk)
- financial mix strategy (financing company projects by finding an optimal
mix of internal and external funding from differing sources)
- capital budgeting (which projects to undertake to maximise return
within an overall capital budget constraint).

Sensitivity Analysis in relation to linear programming and the interpretation of

relevant computer output e.g. the use and interpretation of shadow prices in
assisting decision making.

Forecasting Methods for financial decision analysis; approaches and types of

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 MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM
Leeds Metropolitan University November 2006
1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

forecasting: time series analysis, causal, judgmental etc,

- moving averages and extensions to exponential smoothing

- introductory econometrics: simple regression analysis and extension to
multiple regression analysis and associated problems
- establishing the determinants of financial macro and microeconomic
variables within a framework of testing models of financial decision
making.

32 Teaching and
The teaching and learning strategy will build upon the inter-dependent and
Learning Strategies
independent learning skills which will have been developed earlier in the
programme and students will be expected to take a high degree of responsibility
for their own learning.

Classroom based
This will consist of a mix of lectures, seminar and practical computer laboratory
sessions as appropriate.

Directed study
Students will be provided with a workbook for the course. This will direct them
to reading material, case problems and exercises which will form the basis of
classroom study. The case problems will need to be solved by the application of
a mix of theoretical principles, analytical procedures and interpretative
discussion. Analytical and solution procedures will be carried out in practical lab
sessions and will involve the use of spreadsheet modelling computer software .
Practical guidance for the use of computer software will be provided. Seminar
Case Study solutions will be posted on X-stream.

Independent study
Reference to the learning resources below will enable students to extend their
studies beyond the scope of the directed study materials noted above.

33 Assessment
The course will be assessed by means of a case study and a terminal
(Please detail all examination. The weighting of each will be 50:50.
components)
The Case Study will be an individual assignment.

34 Rationale for
assessment and
relationship of
assessment methods
to learning outcomes

35 Indicative sources
Balakrishnan N et al.: Managerial Decision Modelling with Spreadsheets.
(texts / web based)
Pearson Education 2007

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 MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM
Leeds Metropolitan University November 2006
1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

Elton J.E. et al: Modern Portfolio Theory and Investment Analysis. 7th Edition.
Wiley 2007.

Garlick A. Estimating Risk: A Management Approach. Gower 2007.

Arnold, G : Corporate Financial Management. FT Pitman Publishing 1998.

Hackett, G. and Luffrum, P : Business Decision Analysis. Blackwell 1999

Monahan, G E : Management Decision Making; spreadsheet modelling,

analysis and applications. Cambridge University Press 2000

Wisniewski, M : Quantitative Methods for Decision Makers. 2nd Edition. Pitman

Publishing 1997.

Makridakis, S . Wheelwright, S and Hyndman, R : Forecasting Methods and

Applications. 3rd Edition. Wiley 1998.

Thomas, R L : Modern Econometrics. Addison-Wesley 1997..

J.F. Barlow : Excel Models for Business and Operations Management. Wiley
2005.

Software Applications:

EXCEL applications such as DATA ANALYSIS and EXCEL SOLVER will

typically be used to assist solution procedures.

36 Other resource needs

None
essential for delivery
of this module
37 Has the library been Yes
informed of resource
needs?

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 MODULE APPROVAL/DESCRIPTOR FORM FOR USE FROM
Leeds Metropolitan University November 2006
1 Module Title Financial Decision Analysis
2 Short Module Title Financial Decision Analysis 3 Date of Approval
(30 characters or less)
4 Version Number 02 5 Date of Version 03-DEC-2008
6 Level H4 7 Credits 20
8 Status Live 9 Notional Hours 200
X – 819
10 Course code (Banner) 24743 11 CRN
Y - 820

The following sections 38-40 are to be completed for one delivery of this module only, which will be the
delivery set up on the Banner system

38 Campus, College or Cloth Hall Court and/or Headingley Campus

other location
39 Delivery type Standard

40 Part of term Semester 1 and 2 (Part of Term Code: X,Y)

(When is delivery
scheduled)

40-41 for completion by RSO only

41 Email received by RSO from Dean or nominee Yes / No Date
confirming approval

42 Checked against duplicate module titles and Yes / No Date

set up on Banner by RSO

43 Non-Module Title Modification Tracking

Version Details of modification Date of Nature of Relevant

modification modification course leaders
informed
2 module leader details added (Box 14) 03-DEC-2008 Minor n/a
Key Skills Grid (Box 30) added
3

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