Module: Corporate Financial Management & Investments

Module Specifications..

Current Academic Year 2023 - 2024

Please note that this information is subject to change.

Module Title	Corporate Financial Management & Investments
Module Code	EF218
School	DCUBS
Module Co-ordinator	Semester 1: Liam Hourihane Semester 2: Liam Hourihane Autumn: Liam Hourihane
Module Teachers	Liam Hourihane
NFQ level	8	Credit Rating	10
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

None
Array

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.

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

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	48	Formal lectures
Assignment Completion	20	Group assignment
Tutorial	36	Review of material
Directed learning	50	Revision for terminal examination
Independent Study	60	Reading and preperation for lectures
Directed learning	36	Preperation for tutorial
Total Workload: 250

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

The role of the financial manager
The object of the firm -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 clases 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 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 Capital
Cost of the various instruments - weighted cost of capital (WACC).

Portofolio Theory
Calulation ofexpected to returns and standard deviation for shares - combination of investments - efficient frontier - choosing the optimal portfolio - benefits of diversification.

Stock Market Efficiency
Random walk theory - types of efficiency - three levels of efficiency - value of an efficient market

Woking Capital Management
Management of debtors - creditors - inventory - working capital cycle - cash conversion cycle - working capital polices

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

Dividend Policy
Can shareholder wealth be enhanced by the altering the pattern of dividends - factors that affect dividend policy.

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

Source of Finance
Short - medium - long-term - internal (retained earnings) - external (banks, capital markets etc).

Personal Finance
Personal financial management - investor ratios - personal investment - implications of financial theories for the individual investor - regulation.

Derivatives
Options - hedging - Forward rate agreements - use of options to reduce risk

Assessment Breakdown
Continuous Assessment	20%	Examination Weight	80%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Essay	Group project	20%	Week 20

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, Richard, A. and Stewart C. Myers: 0, Principles of Corporate Finance,
Arnold, Glen: 0, Corporate Financial Management,
Ross, A.A., Westerfield, R.W. and Jaffe, J.F.,: 0, Corporate Finance,
Irwin, Ross, Westerfield and Jordan: 0, Fundamentals of Corporate Finance,

Other Resources

None

Programme or List of Programmes

AF	BA in Accounting and Finance
BSSA	Study Abroad (DCU Business School)
BSSAO	Study Abroad (DCU Business School)
ECSAO	Study Abroad (Engineering & Computing)
HMSA	Study Abroad (Humanities & Soc Science)
HMSAO	Study Abroad (Humanities & Soc Science)
SHSA	Study Abroad (Science & Health)
SHSAO	Study Abroad (Science & Health)

Date of Last Revision

21-MAY-10

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