Module Specifications.
Current Academic Year 2024 - 2025
All Module information is indicative, and this portal is an interim interface pending the full upgrade of Coursebuilder and subsequent integration to the new DCU Student Information System (DCU Key).
As such, this is a point in time view of data which will be refreshed periodically. Some fields/data may not yet be available pending the completion of the full Coursebuilder upgrade and integration project. We will post status updates as they become available. Thank you for your patience and understanding.
Date posted: September 2024
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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. | |||||||||||||||||||||||||||||||||||||||||||
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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. | |||||||||||||||||||||||||||||||||||||||||||
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 |
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Indicative Content and Learning Activities
Finance Function & the Financial EnvironmentThe 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 AppraisalTime 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 ManagementWorking 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 RequirementsRatio 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 FinanceSources 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 StructureDetermining 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 ValuationsReasons for business valuations; asset-based valuations; income-based valuations; cashflow-based valuations.Risk ManagementRisks 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 PolicyFactors 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 FinancePersonal 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. | |||||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||||