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 make 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, dividend payout and treasury policy are also examined. Decisions relating to long-term managerial policies and the integration of corporate finance with other areas of finance is also covered. Students are expected to participate in weekly lectures. | |||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. Appraise the strategic objectives and decision framework of corporate finance, subject to the maximisation of shareholder wealth and subject to agency theory. 2. Understand issues surrounding corporate governance in order to identify factors associated with superior decision-making. 3. Evaluate different methodologies and theoretical approaches to valuing investment projects and companies, incorporating forecasting cash flows at a project specific level and at a corporate level, and analysing risk and return. 4. Explain the determination of the company cost of capital and its relationship with the capital structure of the firm. 5. Contrast the alternatives for raising capital that are available to the firm and evaluate their strategic implications. 6. Evaluate factors affecting dividend decisions by firms. | |||||||||||||||||||||||||||||||||||||||||
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
Principles and Objectives of Corporate FinanceExplores the principles and objectives of the corporate finance function with reference to historic and contemporary expert articles. It critically appraises the concept of maximising shareholder wealth and agency theory.Investment AppraisalExplores and evaluates the techniques and decision rules relating to capital budgeting and the allocation of capital across competing projects within the firm.Capital Structure of the FirmLooks at the factors that determine the firm-wide cost of capital and the implications that has for the selection of the capital structure of the firm. This section critiques the relevant theoretical frameworks including that relating to dividend policy and the literature relating to the proposition of an optimal capital structure for a firm.Sources of FinanceAddressing the sources of finance and instruments available to the firm and evaluates them for a firm from a strategic perspective.This section also examines the relationship between the firm and capital markets in the context of the efficient markets hypothesis.Strategic Creation of Shareholder WealthExamining strategic opportunities as a source of enhancing shareholder wealth. It looks at mergers and acquisitions activity and reviews the empirical evidence. It also looks at the impact of long-term managerial policy and how it impacts firm value. | |||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||||
Programme or List of Programmes
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