Module: Financial Management

Module Specifications..

Current Academic Year 2023 - 2024

Please note that this information is subject to change.

Module Title	Financial Management
Module Code	AC578
School	DCUBS
Module Co-ordinator	Semester 1: Thomas McCluskey Semester 2: Thomas McCluskey Autumn: Thomas McCluskey
Module Teachers	Thomas McCluskey Michael Dowling
NFQ level	9	Credit Rating	10
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

None

Description

The purpose of this module is to enable students to understand the core principles of financial management including investment, financing, and dividend policy decisions. The module will introduce the broad role of the finance function in an organisation and critically evaluate the key influences on business finance decisions both from a domestic and international perspective. Topics covered will include investment appraisal, working capital management, sources of finance, cost of capital, capital structure, business valuations, risk management, dividend policy, and personal finance.

Learning Outcomes

1. Evaluate the importance of the role of the finance function in context of social, environmental and governance and international economic influences on key business decisions including ethical considerations when making finance decisions.
2. Interpret, evaluate, select and apply appropriate investment appraisal criteria including consideration of non-financial factors.
3. Determine working capital, liquidity and funding requirements including the development of strategies to address requirements.
4. Critically consider sources of finance available to a company and examine the characteristics, benefits and limitations of each.
5. Calculate a company’s cost of capital, explain its relevance and assess a company's capital structure and factors influencing the mix of equity and debt.
6. Examine various approaches to business valuations and apply appropriate valuation models to specific businesses.
7. Analyse and assess all risk categories facing a business and use alternative methods of managing risk exposures.
8. Scrutinize the factors influencing a company’s dividend policy in the context of various dividend policy theories.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	48	Lectures
Directed learning	30	Working on Group CA
Directed learning	50	Revision for Final Exam
Directed learning	48	Weekly questions & suggested readings
Independent Study	71	Self-study, preparation for lectures
Directed learning	3	End of semester exam
Total Workload: 250

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Finance Function & the Financial Environment
The finance function and its contribution to social, environmental and business; corporate governance and agency theory; influence of the international economic and financial environment; structure of financial markets; ethical issues facing the finance manager.

Investment Decisions: Capital Investment Appraisal
Time value of money; Investment appraisal techniques (NPV, IRR, ARR and Payback) including consideration of non-financial factors. Advanced investment appraisal issues (leases, risk and return, capital rationing, inflation, uncertainty and probability).

Investment Decisions: Working Capital Management
Working capital and working capital cycle; inventory management, debtor and credit management, cash management, short, medium and long term funding requirements and strategies to address same.

Determining Financial Requirements
Ratio analysis to determine the financial position and performance of a company from the perspective of fund raising and working capital requirements; Identification of key issues in the company's position/performance relevant to borrowing and raising funds.

Sources of Finance
Sources of finance; long term vs. short term funds; internal vs. external funds and factors influencing a company's choice of funding; characteristics, benefits, limitations, appropriateness, availability and risk profile of all sources of finance; means by which each source is raised; typical terms and conditions associated with each.

Cost of Capital & Capital Structure
Determining the appropriate discount rate; calculation of WACC using dividend valuation model and capital asset pricing model; application and limitations of WACC; Factors influencing a company's capital structure and mix of equity and debt; impact of varying gearing levels; capital structure theories.

Business Valuations
Reasons for business valuations; asset-based valuations; income-based valuations; cashflow-based valuations.

Risk Management
Risks facing a business and mitigation techniques; risk management process; types of market risks; types of FX risks; introduction to workings of FX markets; hedging techniques for FX risk (internal & external); hedging techniques for interest rate risk.

Dividend Policy
Factors influencing a company's decision on whether to pay dividend; dividend policy theories - relevancy theory, irrelevancy theory, residual theory, clientele effect, information signalling; alternative types distributions (special dividends, share repurchases).

Personal Finance
Personal financial management process including the financial life-cycle. Assessing a personal financial position, net worth and debt management. Personal investment options (pensions, savings, insurance) and the associated benefits.

Assessment Breakdown
Continuous Assessment	30%	Examination Weight	70%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Group assignment	Group project applying concepts covered in class	20%	n/a

Reassessment Requirement Type
Resit arrangements are explained by the following categories; 1 = A resit is available for all components of the module 2 = No resit is available for 100% continuous assessment module 3 = No resit is available for the continuous assessment component
This module is category 1

Indicative Reading List

Brealey, Myers and Allen: 2016, Principles of Corporate Finance - Global Edition, McGraw-Hill, 978-125925333
Ward, A.: 2014, Finance: Theory and practice, 3rd, Chartered Accountants Ireland, 978-190819948
Peter Atrill: 2017, Financial Management for Decision Makers, 8th, Pearson Education, 978129213433
Glen Arnold: 2013, Corporate Financial Management, 5th, Pearson, 9780273758839
Sven-Erik Sjostrand: 2016, Rethinking Corporate Governance: The Forming of Operative and Financial strategies in Global Corporations, First, All, Edward Elgar Publishing, US,

Other Resources

None

Programme or List of Programmes

MIAB	MSc International Accounting & Business

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