Module: Corporate Finance

Module Specifications.

Current Academic Year 2024 - 2025

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Date posted: September 2024

Module Title	Corporate Finance
Module Code	EF5158 (ITS) / FBA1021 (Banner)
Faculty	DCU Business School	School	DCU Business School
Module Co-ordinator	Sandeep Keshava Rao
Module Teachers	-
NFQ level	9	Credit Rating	7.5
Pre-requisite	Not Available
Co-requisite	Not Available
Compatibles	Not Available
Incompatibles	Not Available

None

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.

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.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	36	Formal lectures and problem-based learning
Independent Study	30	Library work
Independent Study	60	Directed reading
Independent Study	60	Problem sets
Directed learning	101.5	Preparation for tests
Total Workload: 287.5

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

Principles and Objectives of Corporate Finance
Explores 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 Appraisal
Explores 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 Firm
Looks 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 Finance
Addressing 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 Wealth
Examining 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.

Assessment Breakdown
Continuous Assessment	100%	Examination Weight	0%

Type	Description	% of total	Assessment Date
Course Work Breakdown
In Class Test	Conducted via Loop [online]	20%	Week 6
Group assignment	Group report submission	30%	n/a
Assignment	Individual assignment	50%	n/a

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

Aswath Damodaran: 2014, Applied Corporate Finance, Wiley, 1118808932
Richard Brealey and Stewart Myers: 2016, Principles of Corporate Finance, 12, Mc-Graw Hill,
D. Hillier, S. Ross, R. Westerfield, J. Jaffe, B. Jordan: 2016, Corporate Finance, 3rd, Mc-Graw Hill,
GLEN. LEWIS ARNOLD (DEBORAH.),Deborah Lewis: 0, Corporate Financial Management 6th Edition, 1292140445

Other Resources

None