Module: Principles of Finance 1

Module Specifications..

Current Academic Year 2023 - 2024

Please note that this information is subject to change.

Module Title	Principles of Finance 1
Module Code	EF216A
School	DCUBS
Module Co-ordinator	Semester 1: Liam Hourihane Semester 2: Liam Hourihane Autumn: Liam Hourihane
Module Teachers	Liam Hourihane Ekaterina Goryagina Sandeep Keshava Rao Mahdavi Ardekani Seyed Aref
NFQ level	8	Credit Rating	5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

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Description

Corporate Finance deals with the allocation and acquisition of a firm's resources. This module explores from a financial manager perspective the best method for finding and allocating capital to increase shareholders' wealth. The objective of this course if to equip students with the tools and techniques to create value from the firm's financing and investment decisions.Concepts such as corporate objectives, business risk, financial risk and the valuation of financial assets are studied. major policy areas of the firm covering investment appraisal, optimal capital structure and dividend payout are also examined. Special emphasis is placed on long-term managerial policies and their likely impact on the market value of the firm.

Learning Outcomes

1. Solve problems in a financial and business context and to use appropriate financial techniques in order to make decisions from various options
2. Select and defend the use of appropriate models for valuing assets and opportunities
3. Calculate and compare the present and future value of money for planning purposes.
4. Critically evaluate the theoretical and practical considerations inherent in the capital investment decision
5. Apply business finance knowledge to a given situation and provide recommendations.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	24	Formal lectures
Tutorial	9	Review of class material
Directed learning	1	Class test
Directed learning	18	Preperation for tutorial
Directed learning	40	Prepaeration for terminal examination
Independent Study	10	Preperation for class test
Independent Study	23	Reading and preperation for lectures
Total Workload: 125

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

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The object of the firm
The role of the financial manager - corporate goals and corporate governance - economic factors that impact on the financial goals of the firm.

Time value of Money
Quantitative methods of financial management - financial analysis - managers - individual investors - techniques for valuation of different classes of securities - money markets - bonds - shares.

Investment Appraisal
Criteria to guide investment decisions in both physical and financial assets - payback - net present value - internal rate of return - accounting rate of return profitability index - capital rationing - inflation - tax - uncertainity - non financial factors - sensitivity analysis.

Capital Asset Pricing Model (CAPM)
- unsystematic risk - systematic risk - capital market line - security market line - applications of CAPM

Cost of Capital
Calculate the cost of the various instruments and the weighted cost of capital (WACC)

Portfolio Theory
Calculation of the expected returns and standard deviation for shares - combination of investments - efficient frontier - choosing the optimal portfolio - benefits of diversification.

Dividend Policy
The dividend puzzle, Lintner model, M&M irrelevancy argument, clientele and signaling effects

Assessment Breakdown
Continuous Assessment	30%	Examination Weight	70%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Oral Examination	Class Test	20%	Week 6

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, R.A. and Myers, S.C: 0, Principles of Corporate Finance,
Arnold Glen: 0, Corporate Financial Management,
Ross, A.A., Westerfield, R.W. and Jaffe, J.F: 0, Corporate Finance,
Pike, R. & Neale, B,: 0, Corporate Finance & Investment: Decisions & Strategies,

Other Resources

None

Programme or List of Programmes

BSSAO	Study Abroad (DCU Business School)
EBC	BA in Global Business (Canada)
EBF	BA in Global Business (France)
EBG	BA in Global Business (Germany)
EBS	BA in Global Business (Spain)
EBT	BA in Global Business (USA)

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