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Module Specifications..

Current Academic Year 2023 - 2024

Please note that this information is subject to change.

Module Title Corporate and Investment Finance
Module Code EF562
School DCUBS
Module Co-ordinatorSemester 1: Liam Hourihane
Semester 2: Liam Hourihane
Autumn: Liam Hourihane
Module TeachersLiam Hourihane
NFQ level 9 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None

The purpose of this module is to provide students with an understanding of how firms acquire resources, and allocate them among the firms present and potential activities and projects. Our perspective is that of the financial manager who must determine the best method for finding and allocating capital to increase the wealth of the firms shareholders. The objective of this course is, therefore, to equip the corporate manager with the tools and techniques available to create value from the firms 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. Special emphasis is placed on long-term managerial policies and the relevance of corporate finance to the accountant. Students will actively participate in weekly lectures.

Learning Outcomes

1. Apply valuation techniques to companies and projects.
2. Assess investment appraisal techniques and critically compare their merits.
3. Identify key factors that influence the methods by which a company funds its operations
4. Determine the cost of capital for a company.

Workload Full-time hours per semester
Type Hours Description
Lecture36No Description
Independent Study36Library reading in preparation for lectures
Lecture24Sample questions
Online activity6Contribution to debate
Independent Study23Revision
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

Introduction to Corporate & Investment Finance
This section introduces students to the concepts we will cover, plus looks at time value of money.

Investment Decisions
Students study net present value and capital budgeting techniques in the context of investment appraisal.

Risk and Return
Portfolio theory, CAPM and APT form the basis of a section on cost of capital.

Capital Structure
The firms capital structure decision is examined, both theoretically and practically. The interaction of investment and financing decisions is studied, with dividend policy.

Treasury management
Treasury and financial risk management are conceptually introduced, and FX/Interest Rate derivatives are examined specifically.

Dividend Policy
Dividend irrelevancy hypothesis - factors affecting a firm's dividend and retention policy

Understand and calculate the impact on earnings and on market value of companies involved in mergers

Assessment Breakdown
Continuous Assessment20% Examination Weight80%
Course Work Breakdown
TypeDescription% of totalAssessment Date
In Class TestMid-term Exam20%Week 8
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, R., Myers, S. & Allen, F: 2016, Principals of Corporate Finance, 12th, McGraw-Hill,
  • Glen Arnold: 2012, Corporate Financial Management, 5th, Pearson,
Other Resources

Programme or List of Programmes
MBSMSc in Accounting
Date of Last Revision17-NOV-10

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