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As such, this is a point in time view of data which will be refreshed periodically.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 introduce students to the key financial issues faced by modern-day financial managers of corporations. The course will also equip students with conceptual and analytical skills necessary to make financial decisions. Topics to be covered include capital asset pricing model (CAPM), arbitrage pricing model (APT), valuation of firms and projects, real options, capital structure, dividends policy and mergers and acquisitions. The module is delivered through a combination of lectures and tutorials. | |||||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. Describe the role of the financial manager, including the overriding objective of financial decision-making, the issues interfering with that objective and the markets used to achieve the objectives 2. Calculate and compare the present and future value of money for planning purposes 3. Select and defend the use of appropriate models for valuing assets and opportunities 4. Critically evaluate the theoretical and practical considerations inherent in the capital investment decision 5. Critically assess the alternative theoretical and practical aspects of the capital structure decision 6. Evaluate the corporate governance of a company from the shareholders perspective | |||||||||||||||||||||||||||||||||||||||||||
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
The role of the financial managerThe object of the firm -corporate goals and corporate governance - economic factors that impact on the financial goals of the firm.Time value of MoneyQuantitative methods of financial management - financial analysis - managers - individual investors - techniques for valuation of different clases of securities - money markets - bonds - sharesInvestment AppraisalCriteria to guide investment decisions in both physical and financial assets - payback - net present value - internal rate of return - accounting rate of return probitability index - capital rationing - inflation - tax - uncertainty - 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 CapitalCost of the various instruments - weighted cost of capital (WACC).Portofolio TheoryCalulation ofexpected to returns and standard deviation for shares - combination of investments - efficient frontier - choosing the optimal portfolio - benefits of diversification.Stock Market EfficiencyRandom walk theory - types of efficiency - three levels of efficiency - value of an efficient marketWoking Capital ManagementManagement of debtors - creditors - inventory - working capital cycle - cash conversion cycle - working capital policesCapital StructureThe 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 taxDividend PolicyCan shareholder wealth be enhanced by the altering the pattern of dividends - factors that affect dividend policy.Mergers and AcquisitionsDeterminants of synergy - identifying value in the acquisition - approaches to funding the acquisition - the coinsurance effect - defensive tacticsSource of FinanceShort - medium - long-term - internal (retained earnings) - external (banks, capital markets etc).Personal FinancePersonal financial management - investor ratios - personal investment - implications of financial theories for the individual investor - regulation.DerivativesOptions - hedging - Forward rate agreements - use of options to reduce risk | |||||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||||