Module: Corporate and Investment Finance

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-ordinator	Semester 1: Liam Hourihane Semester 2: Liam Hourihane Autumn: Liam Hourihane
Module Teachers	Liam Hourihane
NFQ level	9	Credit Rating	5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

None
Array

Description

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.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	36	No Description
Independent Study	36	Library reading in preparation for lectures
Lecture	24	Sample questions
Online activity	6	Contribution to debate
Independent Study	23	Revision
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

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

Assessment Breakdown
Continuous Assessment	20%	Examination Weight	80%

Type	Description	% of total	Assessment Date
Course Work Breakdown
In Class Test	Mid-term Exam	20%	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

None

Programme or List of Programmes

MBS	MSc in Accounting

Date of Last Revision

17-NOV-10

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