The aim of this module is to enhance engineering managers’ understanding of Financial Management principles and its role in maximising the long term wealth of the shareholders and other stakeholders. Three major decisions are involved: Firstly, capital structure decisions relate to how long-term sources of finance such as debt and equity are combined in an optimal structure for the firm. Secondly, capital budgeting decisions relate to how these sources are optimally invested in for instance infrastructure and manufacturing assets. Thirdly, short-term decisions relate to the use of current assets and current liabilities in the best possible way. Engineering managers need to understand how the results of these three types of decisions are reflected in the financial statements of the firm. Financial principles are important in assessing the financial health of a firm, be it private or public, large or small, profit-seeking or not-for-profit. A thorough understanding of these principles and how they interact from a risk-return perspective is crucial to best serve the strategic goals of the firm.
Faculty of Engineering, Built Environment and Information Technology
20 contact hours per semester
Language of tuition
Module is presented in English
Period of presentation
Semester 1 and Semester 2
Regulations and rules
The regulations and rules for the degrees published here are subject to change and may be amended after the publication of this information.
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University of Pretoria Programme Qualification Mix (PQM) verification project
The higher education sector has undergone an extensive alignment to the Higher Education Qualification Sub-Framework (HEQF) across all institutions in South Africa. In order to comply with the HEQSF, all institutions are legally required to participate in a national initiative led by regulatory bodies such as the Department of Higher Education and Training (DHET), the Council on Higher Education (CHE), and the South African Qualifications Authority (SAQA). The University of Pretoria is presently engaged in an ongoing effort to align its qualifications and programmes with the HEQSF criteria. Current and prospective students should take note that changes to UP qualification and programme names, may occur as a result of the HEQSF initiative. Students are advised to contact their faculties if they have any questions.
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