Module Specifications..
Current Academic Year 2023 - 2024
Please note that this information is subject to change.
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Description The purpose of this module is to provide students with an understanding of how firms acquire financial resources, and allocate them among the firms present and potential activities and projects. Our perspective is that of the financial manager who must determine the best method for finding and allocating capital to increase the wealth of the firms shareholders. Maximizing shareholder value involves considering the long-term consequences of all decisions, including their effects on stakeholders such as customers, employees, and the environment. The objective of this course is, therefore, to equip the corporate manager with the tools and techniques available to create value from the firms financing and investment decisions and serve the stakeholders of the firm. Concepts such as corporate objectives, business risk, financial risk and the valuation of financial assets are studied. Special emphasis is placed on long-term managerial policies and the relevance of financial management also in the context of sustainability. Students are expected to attend weekly lectures and to participate in tutorials. | |||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. Clearly explain why money now is more valuable than money in the future (the time value of money) 2. Critically appraise the various techniques used to evaluate investments 3. Calculate the returns, variances and standard deviations for any asset or portfolio 4. Explain the difference between equity and debt financing 5. Discuss how a business creates long-term value for its stakeholders, including sustainability considerations | |||||||||||||||||||||||||||||||||||||||||
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
Organizational and financial goalsStudents are introduced to the nature, purposes and origin of financial management and its relationship with other disciplines. The importance of investing and financing decisions are outlined in the context of shareholder wealth maximisation.Valuation and Capital Investment DecisionsTime value of money is conceptually introduced, and valuation models are critically appraised. Problems in evaluating investment proposals and studied and techniques of investment appraisal are outlined. The practical application of capital budgeting techniques are then explored in detail.Sources of Long-Term FinanceThe sources and availability of long-term finance including share capital, retained earnings, debt, government sources and venture capital are explored. The analysis of the factors influencing the financing mix decision leads to future sections.Cost of CapitalConcept of the cost of capital is introduced. Models for costs of equity and debt finance are studied and models of capital structure are explored both theoretically and practically. | |||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||
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| Date of Last Revision | 13-FEB-12 | ||||||||||||||||||||||||||||||||||||||||
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