Module: Principles of Finance 2

Module Specifications.

Current Academic Year 2024 - 2025

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Date posted: September 2024

Module Title	Principles of Finance 2
Module Code	EF217 (ITS) / FBA1005 (Banner)
Faculty	DCU Business School	School	DCU Business School
Module Co-ordinator	Liam Hourihane
Module Teachers	-
NFQ level	8	Credit Rating	5
Pre-requisite	Not Available
Co-requisite	Not Available
Compatibles	Not Available
Incompatibles	Not Available

Coursework Only
Array

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. Distinguish between and assess the importance of different sources of finance to the firm.
2. Evaluate corporate decisions from the perspective of the investor and other stakeholders in the firm
3. Categorise the theoretical and practical aspects of managing foreign exchange exposure
4. Compare and contrast financing options to recommend a course of action.
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
Independent Study	53	Preperation for end of year assessment
Independent Study	48	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

Mergers and Acquisitions
Determinants of synergy - identifying value in the acquisition - approaches to funding the acquisition - the conisurance effect - defensive tactics.

Derivatives
Valuation of options - hedging - Forwards - Forward rate agreements - use of options to reduce risk.

Exchange Rate Risk
The effects of exchange-rate changes - volatility in foreign exchanges - types of foreign-exchange risk - transaction risk strategies - managing economic risk

Working Capital Management
Management of debtors,creditors and inventory - working capital cycle - cash conversion cycle - working capital policies.

Capital Structure
The balance between debt and equity - the effects of gearing - the value of the firm and the cost of capital - Modigliani and Miller's argument in a world with no taxes and with tax.

Assessment Breakdown
Continuous Assessment	20%	Examination Weight	80%

Type	Description	% of total	Assessment Date
Course Work Breakdown
In Class Test	Class test	100%

Reassessment Requirement Type
Resit arrangements are explained by the following categories: Resit category 1: A resit is available for both* components of the module. Resit category 2: No resit is available for a 100% continuous assessment module. Resit category 3: No resit is available for the continuous assessment component where there is a continuous assessment and examination element.
* ‘Both’ is used in the context of the module having a Continuous Assessment/Examination split; where the module is 100% continuous assessment, there will also be a resit of the assessment
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