SCHOOL OF ACCOUNTING, ECONOMICS AND FINANCE

FINANCE 202 (FINA202)

F202 STG.DOC
 FINANCE 201 (FINA202): 2024

PHILOSOPHY
This module is aimed at students who may not intend to follow a professional accounting career but
who do wish to pursue a career in the area of financial decision-making in a dynamic and changing
economic environment. Finance can be defined in many ways, with the Merriam-Webster dictionary
noting that this refers to money and other resources of government, business and individuals; the system
that includes money, credit, investments, and banking; accessing funds or capital; and the study of
managing funds. It’s a wide field, and the goal of Finance 202 is to continue to introduce you to some of
the key elements of this field of study.

OBJECTIVES
In Finance 201, we introduced students to the financial environment, analysis of financial statements,
the fundamental concepts of valuation, and working capital management from the perspective of the
financial manager. Finance 202 goes on to cover the Investment and Financing decisions facing the
financial manager, as well as Risk and Return and an introduction to derivatives.

COURSE ADMINISTRATION
1. The Westville lecturer is Dr Rethabile Nhlapho. She may be found, during consultation times
only, in J block, 3rd floor, room 368. Her e-mail address is Nhlaphor@ukzn.ac.za.
The Pietermaritzburg lecturer is Ms Swastika Rajhununan. She may be found, during
consultation times only, on the 3rd floor, New Arts Building. Her email address is
RajhununanS@ukzn.ac.za.
Prof Kerry McCullough (mcculloughk@ukzn.ac.za) is the academic leader for the Finance
discipline and you may refer any broader Finance academic matters to her. Her, and Teaching
and Learning academic leader Mrs Shelley Donnelly, are assisting with module coordination.

2. Queries of an administrative nature for Westville students must be referred to Sandile Mchunu
in J block, 3rd floor, room 348 during office hours. His e-mail address is
MchunuS9@ukzn.ac.za and his office telephone number is 031-2602148.
The Finance administrator for PMB campus students is Mrs Varuna Bandu. Her office is on the
3rd Floor of the New Arts Building, her email address is banduv@ukzn.ac.za and her contact
telephone number is 031-2605296

3. The Finance Academic Development Officer (ADO) for the School on the Westville campus is
Thobani Nzuza. His office is in J Block, 3rd floor, room J329, his email address is
220033873@stu.ukzn.ac.za and his office line is 031-2602591. The ADO for the Pmb campus is
Mandisi Mthembu. His office is in the Commerce basement, Room B8, his email address is
217079242@stu.ukzn.ac.za and his office line is 033-2605399. The ADO’s provide academic
support through individual or group consultations; have an open-door policy and a holistic teaching
and learning approach. They will send reminders to negative term decision students to attend
lectures, tutorials, practicals, SI sessions etc. The services they offer include academic skills sessions
(e.g. note-taking and exam technique); discipline-specific study skills; test and exam preparation;
time management; handling of the textbook and volume of work; student orientation to the
Supplemental Instruction (SI) Program. Any Undergraduate (UG) student may consult with an ADO.
However, UG negative term decision students will usually take priority if ADO resources are
overstretched.
4. There is a Supplemental Instruction Leader (SIL) appointed per campus for FINA201. They are
Nokwethemba Mkhize for Westville campus (220002476@stu.ukzn.ac.za) and
TBC for Pietermaritzburg campus.
The SILs will facilitate regular academic study sessions for the module, promoting peer-to-peer
interaction and collaborative learning where students develop discipline-specific study skills for
enhanced academic performance. Students will be encouraged to submit their academic queries to
SILs prior to a session so that these can be addressed during the session i.e. students are encouraged
in advance to set the agenda for the SI sessions, by specifying key topics or aspects of topics that
they find problematic.

5. The prerequisite for Finance 202 is a final mark of at least 50% in Finance 201. Students
who failed this module in the first semester but are registered for FINA202, must
immediately de-register from FINA202, if the College office has not already done so.
In order to progress to Finance 3, you will need to pass both Finance 201 and Finance 202, as
these are prerequisites. There are no exceptions to these rules.

6. You are requested to elect a class representative to articulate relevant issues and to facilitate
the communication process. These representatives should be first-time FINA202 students, in
good academic standing.Lecture slides, with links to additional readings, and related online
links will be posted on Learn for each topic within the module, before the start of each Topic.
Students are advised to come to lectures prepared with a printout of their lecture notes, or to
view them on the laptop/tablet screen in front of them.

7. We have created a Meta course for FINA202 on Learn for both campuses combined. To
access the meta course for the first time please use this link:
https://learn2024.ukzn.ac.za/course/view.php?id=6811

8. There is only one class group for Finance 202, falling under timetable block F on both
campuses. There will be 4 lectures, an SIL-led revision lecture and a double tutorial held per
week. Tutorial group lists will be drawn up prior to the first tutorial. Students must remain in
their allotted tutorial group at all times, otherwise class sizes and venues will be compromised.
Prior to each week’s tutorial you will be provided with that week’s tut questions. You are
encouraged to attempt the tutorial questions on your own and prior to your tutorial itself, as
this is how learning will be most effective. During your tutorial you can pose questions to
your tutor and engage with the question material and other members of your group. Tutorial
solutions will be provided at some time after the tutorials.
9. The time table for the semester is as follows:

BLOCK F (PMB and Westville students)

TIME PERIOD MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

7:45 - 8:30 1
8:40 - 9:25 2
Double
9:35 - 10:20 3 Lecture Double Tutorial SIL Session
(Register Taken) (Register Taken)
10:30 - 11:15 4

11:25 - 12:10 5
12:20 - 13:05 6
For occasional Single
use Lecture
13:15 - 14:00 7
Single
Lecture
14:10 - 14:55 8
15:05 – 15:50 9
16:00 – 16.45 10
16:45 - 17:30 11

The lecture and tut venues are as follows:

Day and Period WESTVILLE PMB
Monday 2 & 3 T4 NAB211
Tuesday 7 L17 NAB211
Wed 3 & 4 tutorial J172, L11, L208, L23, L24 C10, NAB116
Wed 6 T4 NAB211
Thursday 6 T4 NAB211
Friday 3 T4 NAB211
COURSE ASSESSMENT
Student performance for the semester will be assessed as follows:

EVENT DURATION MARKS DATE/TIME/VENUE

AWARDED
Thursday 5th September 2024
Test 1 (Topics 1 & 2) 90 mins 100 5 – 6.30 PM in Main hall (WVL)
and SU (PMB)
Thursday 10th October 2024 5:00 –
Test 2 (Topic 3&4) 90 mins 100 6:30 PM in Main hall (WVL)
and SU (PMB)
Total Class Mark 200

Final Examination 200 As per examination time table

400
The final 3-hour examination will count 50% towards the final mark, and the Class Mark will constitute the
other 50%.

To obtain credit for the module a final grade of at least 50% must be achieved. A pass in BOTH
FINA201 and FINA202 is required to progress to FINA311, FINA312 and FINA321.
All assessments will be held in person, on campus.

TUTORIAL ATTENDANCE
We are yet again taking the approach that you are all second-year students and mature enough to take
responsibility for your own performance. Tutorials are where you get to really engage with the material
and apply and practice the Finance concepts taught. The only person who will be disadvantaged if you
decide not to attempt or attend your tutorials or engage with your tutor and fellow tut group members, is
YOU.

Evidence of having worked on the tutorial in advance of the tutorial session is required. You will submit
your tutorial workings, via Learn, every Monday (tutorials are every Wednesday). These are checked by
tutors, and graded for being on track.

TESTS
There are 2 scheduled tests for the Course. Test 1 will cover Topics 1 and 2, and Test 2 will cover
Topic 3 and some of topic 4. The exact The final EXAM covers all four topics.

Should illness or other unavoidable circumstances prevent you from writing one of the two class tests, a
third test will be held on 21 October (venue TBC), which will cover the ENTIRE semesters work.
This third test is not a make-up test for students who wish to improve their class mark – it is an
opportunity for students who could not or chose not to write one of the two scheduled tests, to write a
second test. Such students need not apply to write this third test, and doctor’s certificates etc need not
be provided.

Should students only write one test out of the 3 scheduled tests, then they will score ZERO for the test
missed. No exceptions.

DP REQUIREMENTS
There are no formal DP requirements for FINA201. However, for the best chance of success, students must:
- Write both scheduled class tests, or one scheduled class test and Test 3;
- Attend and participate in all tutorials, with prepared work.
LEARN and EMAIL ETIQUETTE
Learn (http://learn2024.ukzn.ac.za) is the official means for staff to communicate with you. Log in
EVERY DAY as notices posted there will be deemed to have been personally handed to you. Any
changes to the course will be posted, and all materials related to the course will be made available there.
Official marks will be released on student central (SMS) only. Ensure that your email address is active
and that you check for new emails daily.

Before sending an email to your Lecturers, Tutors or SI leaders, please ensure that you have gone
through the course guide, the announcements on Learn and Emails to check if that information have not
already been made available. In an instance where you are sending an email, please ensure you include
your full name AND student number AND course (FINA202) AND campus registration
(PMB/WVL).

Use professional communication, including address (staff names and titles are in the course guide –
“Good Day Dr X”) and sign off (“Best wishes”, “Kind Regards”, Thank-you”, Name, Surname and
Student Number). These are good habits to develop as you prepare for the working world.

TEACHING AND LEARNING

As stated above, it is essential that you pay attention to the Learn page as this is our primary
means of communicating with you. If you experience an access issue, let us know as soon as
possible. You need to COVER ALL MATERIALS in the SLIDES, TUTORIALS, TEXTBOOK
CHAPTERS AND ANY READINGS. It is your responsibility to make sure that you obtain all
prescribed and supplementary materials.
Finance modules at UKZN build upon each other. It is important to realise that what you learnt in
FINA201 is used in FINA202, what is learnt in second year Finance is used in third year Finance or
Managerial Accounting and Financial Management (MAFM), and what you cover in undergraduate
Finance forms the basis for Honours in Finance.

It is vital to your success that you revise previous course work as you prepare for the new semester. For
FINA202 we will assume that you are able to comfortably use discounting (present value), that you can
value bonds and shares, and that you have a working understanding of the business environment and the
foundational theories of finance covered in FINA201. The focus in Topic 1, for example, is not on
teaching FINA201 content, rather we develop that content to an intermediate level and continue to work
with a financial calculator. If you are not comfortable with the concepts yet, you need to revise 201
before starting FINA202.
For the purpose of this module, each topic will have slides, but the primary supplementary material is
the Correia textbook described below. The course guide provides a framework for your reading for
each week (read ahead, and ask questions as they arise).
PRESCRIBED READING
Correia, C. (2024) Financial Management 10th Edition. Juta Press (9th edition also fine). Chapters 3,
4, 7, 8, 9, 14 & 16. Print and online versions of this textbook are available at most stockists of
university books.
The slides also draw extensively from the following supplementary texts:
 Firer C, Ross SA, Westerfield RW, Jordan BD (2012) Fundamentals of Corporate Finance,
Fifth South African edition, McGraw-Hill Higher Education. (FRWJ). Chapters 9, 10, 12 & 13.
 Gitman, L.J., Smith, M.B., Hall, J., Makina, D., Malan, M., Marx, J., Mestry, R., Ngwenya, S.
and Strydom B. Principles of Managerial Finance: Global and South African Perspectives 2nd
Edition. Pearson (2014). Chapters 10 and 11 and a small part of Ch 12 (p 476 – 478).
Copies of these Texts are available in both campus libraries.

Students will be expected to consult a variety of sources in addition to the text book and lecture notes, and
should also become familiar with the financial press.

PRESCRIBED CALCULATOR
You should all be in possession of a Financial Calculator as required for FINA201, FINA202 (and
beyond), and Finance staff will teach using the HP10bII+ calculator. It is the responsibility of any
student who elects to use a different calculator (e.g. Sharp, Texas Instruments or Casio), to make sure to
learn how to use it via online materials and instructions. YouTube often has instructional videos in
this regard. Being able to competently and comfortably use a financial calculator is an important real-
world finance skill that we will be developing from Fina201 onwards.

USE OF EXCEL
You may be exposed to some basic spreadsheet skills again this semester. Make sure that you still have
Microsoft Excel loaded onto your laptops/tablets. The Microsoft Office 365 suite is available free of
charge to all students and the ICS walk-in student centre will be able to assist you in this regard, or you
can contact them on 031-260 4000.

ACADEMIC AND OTHER SUPPORT

For academic support please contact your lecturer and/or ADO as and when you have content-related
queries. You can also engage with your tutor during your tutorials.
Please also make use of the personal support services available to you as a UKZN student. Student
Support Services offer assessment, counselling and psychotherapy by qualified psychologists. The
CLMS Student Support Service is committed to promote student success and well-being, by providing
comprehensive and integrated telepsychology services. See the CLMS website
https://clmsstudentsupport.ukzn.ac.za for resources available. Contact their administrative officer, Ms
Nomathemba Makhathini at MakhathiniN@ukzn.ac.za or call 031-260 7337 and ask to be booked for a
session. Lifeline (033-342 4447 or 031-3122323 or 0861322322) is another resource available.

Please will students with a disability register with the Disability Student Unit and contact Mr
Balakrishna on Balakrishna@ukzn.ac.za or 031 260 3140. Through the unit your lecturers will be
informed privately of your disability so that we can ensure that your needs are met.

MODULE OUTLINE overleaf….

MODULE OUTLINE

T FINANCE 202 – 2024 COURSE OUTLINE LEC TUT

INTRODUCTION 1
1 LONG-TERM INVESTMENT DECISIONS 10 3
Capital budgeting techniques: NPV and other criteria
Capital Budgeting cash flows
Revision 1
2 RISK AND RETURN 10 3
Risk and Return fundamentals
Risk of a single asset and risk of a portfolio
The Capital asset Pricing Model (CAPM) and Security Market Line
(SML)
Revision 1
3 LONG-TERM FINANCIAL DECISIONS 14 4
Cost of Capital
Leverage and Capital Structure Choosing
the optimal capital structure
Payout policy: the basics, mechanics and relevance
Factors affecting dividend policy
Types of dividend policy
Other forms of dividends
Revision 1
4 INTRODUCTION TO RISK MANAGEMENT 6 1
Hybrid and derivative securities.
Types of convertible securities.
Types of financial derivatives: forwards, futures, options (calls and puts)
and swaps.
Basic terminology around exchange rates.
Revision 1
Exam briefing and revision 4
 UNIVERSITY OF KWAZULU-NATAL
SCHOOL OF ACCOUNTING, ECONOMICS AND FINANCE
TEACHING CALENDER - 2024
SECOND SEMESTER

MODULE:

W/B MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

Topic 1 No tut or lecture Lecture 2
22/07 Intro lecture SIL Session
Lecture 1
SIL Session
Final date for
29/07 Lecture 3&4 Lecture 5 Tut 1.1 Lecture 6 COC, Xtended
DP applications
and Registration
National
05/08 Lecture 7&8 Lecture 9 Tut 1.2 Lecture 10 Women’s Day
Topic 1 Revision
12/08 Topic 2 Lecture 2 Tut 1.3 Lecture 3 SIL Session
Lecture 1
19/08 Lecture 4&5 Lecture 6 Tut 2.1 Lecture 7 SIL Session
26/08 Lecture 8&9 Lecture 10 Tut 2.2 Topic 2 Revision SIL Session
02/09 Friday Topic 3 No lecture
Tut 2.3 SIL Session
Timetable Lecture 1 Test 1
SIL Session
Final date for
09/09 Lecture 2&3 Lecture 4 Tut 3.1 Lecture 5 withdrawal from
a module and
the university
16/09 Lecture 6&7 Lecture 8 Tut 3.2 Lecture 9 SIL Session
23/09 Heritage Day Mid-term break
30/09 Lecture 10 Topic 4 Tut 3.3 Lecture 2 SIL Session
Topic 3 Revision Lecture 1
07/10 No lecture
Lecture 3&4 Lecture 5 Tut 3.4 SIL Session
Test 2
14/10 Lecture 6 Exam revision Exam revision
Tut 4 SIL Session
Topic 4 Revision Topic 1 Topic 2
21/10 Exam revision Exam revision
Test 3 SIL Session
Topic 3 Topic 4
Spare lecture
28/10 Spare lecture LECTURES Diwali
END

Mon 4 Nov – Tues 19 Nov: Main Examination period

Tues 26 Nov – Tues 3 Dec: Supp Examination period
Wed 11 Dec: Supp marks to be captured on SMS and modules closed by 12h00
Mon 16 Dec: Public holiday
Thurs 19 Dec: School Exam Board meeting
Fri 20 Dec: Release of semester 2 marks (00:01 am)
Tues 24 Dec: University closes at 12 noon.

This teaching calendar will be updated and placed separately on Learn whenever necessary.