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2015_MBL922N

Module overview 2015


Strategic Financial Management

MBL922N
IMPORTANT INFORMATION:
This module overview contains important information
about your module.

CONTENTS
Page
CONTENTS ............................................................................................................................................. 2
1

INTRODUCTION .......................................................................................................................... 4

PURPOSE AND BROAD AND SPECIFIC OUTCOMES FOR THE MODULE .............................. 4

2.1

Purpose ........................................................................................................................................ 4

2.2

Specific outcomes ......................................................................................................................... 4

LECTURER(S) AND CONTACT DETAILS................................................................................... 5

3.1

Lecturer(s) .................................................................................................................................... 5

3.2

Area .............................................................................................................................................. 6

3.3

University ...................................................................................................................................... 6

MODULE-RELATED RESOURCES ............................................................................................. 6

4.1

Prescribed books .......................................................................................................................... 6

4.2

Recommended books ................................................................................................................... 6

4.3

Electronic reserves (e-reserves) ................................................................................................... 6

TOPICS ........................................................................................................................................ 7

5.1

Topic 1 .......................................................................................................................................... 7

5.2

Topic 2 .......................................................................................................................................... 7

5.3

Topic 3 .......................................................................................................................................... 8

STUDY SCHOOL PLAN ............................................................................................................... 8

6.1

Study School 1............................................................................................................................. 9

6.2

Study School 2............................................................................................................................. 9

MODULE-SPECIFIC STUDY PLAN ............................................................................................. 9

MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING .................................... 9

ASSESSMENT ............................................................................................................................. 9

9.1

Assessment on postgraduate level ............................................................................................... 9

9.2

Assessment plan ........................................................................................................................ 10

10.2

General assignment numbers ..................................................................................................... 10

9.3.1

Due dates for assignments ......................................................................................................... 11

9.4

Submission of assignments ........................................................................................................ 11

9.5

Assignments ............................................................................................................................... 11

9.5.1

Group assignments ..................................................................................................................... 12

9.5.2

Repeaters individual assignments .............................................................................................. 12

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OTHER ASSESSMENT METHODS ........................................................................................... 13

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EXAMINATION ........................................................................................................................... 13

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FREQUENTLY ASKED QUESTIONS ........................................................................................ 13

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SOURCES CONSULTED ........................................................................................................... 13

INTRODUCTION

Dear student
Welcome to the world of Strategic Financial Management. We suggest that you study this
module overview thoroughly and we hope that you share our enthusiasm for this module.
The traditional approach of financial management was to make profits at all costs. The main
limitation of this approach was that companies often had other objectives apart from making a
profit. In todays business environment, however, financial management is all about wealth
maximization. In addition, companies also have a social responsibility - making efforts to give
something back to society.
Managerial finance principles are used to an ever increasing extent, necessitating a scientific
approach to business decisions.
Students accredited with this module will understand, and be able to apply, several important
components related to strategic financial management. These components include, amongst
others, strategy, risk, interest rates and interest rate risk, cost of capital, portfolio management,
investment and financing decisions, financial analysis, valuations and financial markets.
As part of your study material you will receive a study guide that will guide you through studies
in MBL922. Remember that this is merely a guide and that the textbook constitutes the main
part of the material.

PURPOSE AND BROAD AND SPECIFIC OUTCOMES FOR THE


MODULE

2.1

Purpose

This module is fundamental to understanding and running a company, as managerial finance


principles are used to an increasing extent. This module will therefore be useful to students who
work in the modern business environment and would require a scientific approach to business
decisions.
2.2

Specific outcomes

Specific outcome 1:
Understand, describe and evaluate financial management, strategy and risk.
Assessment Criteria
An understanding, a description and an evaluation of financial management, financial strategy
and risk will be demonstrated by:

ability to describe financial management and the role of the financial manager

ability to evaluate strategy and recommend specific strategies


ability to describe and evaluate the different types of risk
ability to calculate present and future values
ability to explain capital structures and calculate cost of capital
ability to explain portfolio management and the Capital Asset Pricing Model
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MBL922N

ability to compile and evaluate business plans

Specific outcome 2:
Understand, describe and evaluate financial decision-making and financial distress.
Assessment Criteria
An understanding, a description and an evaluation of financial decision-making and financial
distress will be demonstrated by:
ability to evaluate investment and financing decisions
ability to perform in depth financial statement analysis
ability to describe working capital management
ability to understand financial distress in companies
ability to understand the winding up of a company
ability to calculate specific values related to financial distress in companies
Specific outcome 3:
Value different types of financial instruments and discuss mergers and acquisitions.
Assessment Criteria
An understanding of valuations will be demonstrated by:
ability to explain the different definitions of values
ability to explain the different valuation approaches
ability to evaluate different types of financial instruments
ability to differentiate between the various forms of mergers and acquisitions

ability to explain the related financial effects of mergers and acquisitions

LECTURER(S) AND CONTACT DETAILS

3.1

Lecturer(s)

The lecturer for this module is:

Office:
Telephone number:
E-mail address:
Fax number:

Prof. R.H. Mynhardt


Room 3-37, AJH van der Walt building, Unisa Main
Campus, Preller street, Muckleneuk, Pretoria.
+27 12 429 4927
mynharh@unisa.ac.za
+27 11 652 0371

Lecturers can assist with enquiries of an academic nature only, such as enquiries about the
contents of assignments.
You must provide your student number and the course code of this module (MBL922N)
whenever you send us an enquiry.

3.2

Area

Please direct any administrative enquiries concerning the Value Chain area to our
administrative support staff.

Name
Telephone number
E-mail address

3.3

Value Chain Area


Ms M Snyman
+ 27 11 652 0202
snymaml@unisa.ac.za

University

The contact points for any enquiries about administrative support are listed below. Remember
to use your student number as a reference whenever you contact the University.
Description of enquiry
Reception / Information Desk
Registrations
Prescribed Books
MBL922N
Programme Administration

Telephone
+27 11 652 0214/48
+27 11 652 0290
+27 11 652 0218
+27 11 652 0202
+27 11 652 0341/2

Library

EDS Support
myUnisa
Finance

E-mail address
Zinhle Rakhomo
dlaminz@unisa.ac.za
sblregistrations@unisa.ac.za
Lebepe Terrance
lebepmt@unisa.ac.za
Ms M Snyman
snymaml@unisa.ac.za
Megan
Scheeper/Lindi
Ncongwane
scheema@unisa.ac.za/ncong
le@unisa.ac.za

+27 11 652 0249


+27 11 652 0358
43582 (SMS)

edssupport@sbleds.ac.za

+27 11 652 0324

SBLfinance@unisa.ac.za

MODULE-RELATED RESOURCES

4.1

Prescribed books

myUnisaHelp@unisa.ac.za

Skae, F.O. 2013. Managerial Finance. 7th ed. LexisNexis.


4.2

Recommended books

Firer, C., Ross, S.A., Weterfield, R.W. & Jordan, B.D. 2008. Fundamentals of Corporate
Finance. 4th ed. McGraw Hill.
4.3

Electronic reserves (e-reserves)

There are a number of financial journals linked as additional resources on the EDS.

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TOPICS

The following topics are covered in this module on Strategic Financial Management:
5.1 Topic 1
TOPIC

CHAPTERS

DESCRIPTION

IN
TEXT BOOK
Financial
management,
strategy and risk

1, 2, 3, 4, 5,
15, 16 and 17

Financial management
Strategy and risk
Present and future value of money
Capital structure and cost of capital

Portfolio management and capital asset


pricing model

Foreign exchange and currency risk


Interest rates and interest rate risk
Business plans

5.1.1

Tuition period

Time allocation: Before study school 1.


5.1.2

Specific outcomes

After having completed this topic, students will be able to understand, describe and evaluate
financial management, strategy and risk.
5.1.3

Self-assessment

Each chapter contains exercises with accompanying solutions. You should study these
exercises and solutions thoroughly.

5.2

Topic 2
TOPIC

CHAPTERS

DESCRIPTION

IN
TEXT BOOK
Financial decisionmaking and
financial distress

6, 7, 8, 9, 13
and 14

The investment decision


The financing decision
Analysis of financial statements
Working capital management
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Financial distress
The dividend decision

5.2.1

Tuition period

Time allocation: Before study school 2.


5.2.2

Specific outcomes

After having completed this topic, you will be able to understand, describe and evaluate
financial decision-making and financial distress.
5.2.3

Self-assessment

Each chapter contains exercises with accompanying solutions. You should study these
exercises and solutions thoroughly.

5.3 Topic 3

TOPIC

CHAPTERS

DESCRIPTION

IN
TEXT BOOK
Valuations,
mergers and
aquisitions

5.3.1

10, 11 and 12

Valuations of preference shares and debt


Business and equity valuations
Mergers and acquisitions

Tuition period

Time allocation: Before study school 2.


5.3.2

Specific outcomes

After having completed this topic, you will be able to value different types of financial
instruments and discuss mergers and acquisitions.
5.3.3

Self-assessment

Each chapter contains exercises with accompanying solutions. You should study these
exercises and solutions thoroughly.

STUDY SCHOOL PLAN

All study schools are held in Midrand. Attendance is compulsory and students will be advised
about the dates and venues well in advance. Students are responsible for their own
accommodation, travel arrangements and expenses incurred while attending the study schools.
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Study schools give students an opportunity to network with fellow students and to interact with
academics.

6.1

Study School 1
Topic number
1

6.2

Topic description
Financial management, strategy and risk

Study School 2
Topic number

Topic description

Financial decision-making and financial distress

Valuations, mergers and aquisitions

MODULE-SPECIFIC STUDY PLAN

Use your my Studies @ Unisa brochure for general time management and planning skills. This
brochure is available at http://www.unisa.ac.za/contents/study2012/docs/myStudies-Unisa2014.pdf. We strongly recommend that you set a study programme for yourself for this year and
that you allocate sufficient time to work through the study guide, to study and read the relevant
sections of the prescribed books, to incorporate additional material if necessary, to do the
assignments, and to prepare for the examination.
You will need to spend at least 200 hours working on this module. This includes approximately
83 hours of reading and studying the learning material, 67 hours of doing activities and
assignments, and 50 hours of preparation for the examination. This includes attending the study
school.

MODULE PRACTICAL WORK AND WORK-INTEGRATED LEARNING

None

ASSESSMENT

The distributed distance learning elements comprise self-tuition and group work in which you
must do both prescribed and recommended reading, complete assignments, and contribute to
group activities.

9.1

Assessment on postgraduate level

There are different types of performance standards that one can use when assessing
performance. This module is based on the mastery of specified learning outcomes which, along
with assessment criteria, are included in this module overview. Standards for accrediting
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qualifications are set by the South African Qualifications Authority (SAQA), which oversees the
National Qualifications Framework (NQF).
Assessment plays an important role in the learning process. The individual test and group
assignments form part of the formative assessment in this module and are used to assess your
progress during the year and to provide feedback which you can use to improve your future
performance in this module. In addition to being assessed on the learning outcomes of the
module, you will also be assessed on the critical cross-field outcomes (CCFOs) associated with
the module and with postgraduate studies in general. These CCFOs are generic outcomes that
inform all teaching and learning and they have been integrated with the formative and
summative assessment in this module. The following table indicates some of the CCFOs and
practical examples useful in assessing them:
CCFO

Example

Organising and managing oneself and


ones activities responsibly and effectively

Submitting your completed assignment by the


due date is an indication that you have
mastered this outcome.

Collecting, analysing, organising and


critically evaluating information

Searching for other sources, incorporating


different views and forming a substantiated
opinion are indications that you have mastered
this outcome.

Communicating effectively using language


skills in written presentation

Adhering to the technical requirements for an


essay assignment is an indication that you
have mastered this outcome.

For more information on the CCFOs, please visit the South African Qualifications Authority
(SAQA) website at http://www.saqa.org.za.

9.2

Assessment plan

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To determine how well you have accomplished the learning outcomes


for the module, you will be assessed throughout the year by means of
an individual test, two group assignments and an examination. Group
assignments contribute 24% towards the final mark of this module.
The individual test is written towards the end of the first semester and
contributes 16% towards the final mark. The weight of the year mark is
40% and that of the written examination is 60%.

10.2

General assignment numbers

Assignments are numbered consecutively per module, starting from 01.

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9.3.1 Due dates for assignments


A due date is the last date on which the assignment should reach the university. If your
assignment is not registered on the system by the due date, you should contact your lecturer
immediately and have a copy of your assignment ready.
The due dates for this module are:
Assignment
01

Due date
06 May 2015

02

15 June 2015

03

20 July 2015

Year mark contribution


Type
Contributes 12% towards final
Group
mark
assignment
Contributes 16% towards final
Individual
mark
assignment/test
Contributes 12% towards final
Group
mark
assignment

Marks
100
TBC
100

VERY IMPORTANT
Please ensure that your assignments reach us on or before the due dates. Penalties will be
awarded for assignments received after the due date:
Assignments received up to 3 days after the due date will incur a 25% penalty.
Assignments received up to 6 days after the due date will incur a 50% penalty.
No assignment received 7 days or more after the due date will be marked. A mark of 0 will be
recorded on the system.

9.4

Submission of assignments

All assignments are to be submitted online using the Electronic Delivery System (EDS online).
For detailed information on how to use the EDS online and instructions about assignment
submission, please refer to the EDS Guide, which you received with your study package.
9.5

Assignments

We strongly recommend that students unfamiliar with the case method of learning visit the
publisher Online Learning Centre (OLC) at ww.mhhe.com/thompson. The OLC provides access
to a guide to case analysis. This guide explains what a case is, why cases are a standard part
of courses in strategy, how to prepare for a class discussion of a case, and how to prepare a
written case analysis.
Two assignments are group assignments and one is an individual assignment. Note, however,
that repeaters of this module are expected to submit individual assignments. Also note that we
will adopt a very strong stance on plagiarism for all assignments and may decide to take
disciplinary steps against students who plagiarise. Plagiarism is the act of taking the words,
ideas and thoughts of others and passing them off as your own. It is a form of theft that involves
a number of dishonest academic activities. An example of plagiarism is retrieving information
from the internet and then copying and pasting this information into your assignment and
submitting it as your own work.
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You may access the Policy for Copyright Infringement and Plagiarism from
http://www.unisa.ac.za/Default.asp?Cmd=ViewContent&ContentID=27715.
9.5.1 Group assignments
GROUP ASSIGNMENT 01
Topic 1
Due date: 06 May 2015
Technical requirements:
Maximum length: 15 pages, 12 Font, 1,5 spacing (excluding appendices). Kindly note that markers will only
review the first 15 pages.
Referencing: Harvard Referencing Method

Questions to follow

GROUP ASSIGNMENT 03
Topics 2 and 3
Due date: 20 July 2015
Technical requirements:
Maximum length: 15 pages, 12 Font, 1,5 spacing (excluding appendices). Kindly note that markers will only
review the first 15 pages.
Referencing: Harvard Referencing Method

Questions to follow

9.5.2 Repeaters individual assignments

Students that have failed and are repeating MBL922N should note that Group Assignment 01 is
an individual assignment to them and has the same submission date as Group Assignment 01.
Students repeating this module must complete this assignment individually.

Your answers to the above will be assessed in terms of the level of communication displayed,
the insights and inferences drawn, and your ability to show the implications of the factors that
you have assessed and discussed. An answer that merely gives a list of events that have
happened or a synopsis of a situation, without showing insight into the reasons and results, will
not earn good marks. Your method of referencing must consistently follow the augmented
Harvard method. Annexures can be used to highlight additional information.

Students that have failed and are repeating MBL922N should note that Group Assignment 03 is
an individual assignment to them and has the same submission date as Group Assignment 03.
Students repeating this module must complete this assignment individually.
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OTHER ASSESSMENT METHODS

More information about the form and scope of assessment, as well as the dates, will be
supplied well in advance.

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EXAMINATION

Open book examinations will be written during October/November. The duration of the
examination is four hours. The examination will consist of one or more case studies and specific
questions related to the case(s). All reading material set out in this module overview, together
with all material covered at the study schools, should be studied for the examination. You are
allowed to bring all reading materials to the examination except electronic devices.
Examination eligibility will be according to the rules and procedures applicable to the MBL.
Students will be required to adhere to the Unisa examination timetable, as well as the
designated Unisa examination centres. Students may be required to write more than one
module per day during the examination period.

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FREQUENTLY ASKED QUESTIONS

The my Studies @ Unisa brochure contains an A-Z guide of the most relevant study
information. This brochure is available at
http://www.unisa.ac.za/contents/study2012/docs/myStudies-Unisa-2014.pdf

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SOURCES CONSULTED

The following source was consulted in compiling this module overview:


Skae, F.O. 2013. Managerial Finance. 7th ed. LexisNexis.

Prof. R.H. Mynhardt


GRADUATE SCHOOL OF BUSINESS LEADERSHIP
UNISA

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