Module: Principles of Finance 2

Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title	Principles of Finance 2
Module Code	FBA1005 (ITS: EF217)
Faculty	DCU Business School	School	DCU Business School
NFQ level	8	Credit Rating	5

Description

Corporate Finance deals with the allocation and acquisition of a firm's resources. This module explores from a financial manager perspective the best method for finding and allocating capital to increase shareholders' wealth. The objective of this course if to equip students with the tools and techniques to create value from the firm's 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 and dividend payout are also examined. Special emphasis is placed on long-term managerial policies and their likely impact on the market value of the firm.

Learning Outcomes

1. Distinguish between and assess the importance of different sources of finance to the firm.
2. Evaluate corporate decisions from the perspective of the investor and other stakeholders in the firm
3. Categorise the theoretical and practical aspects of managing foreign exchange exposure
4. Compare and contrast financing options to recommend a course of action.
5. Apply business finance knowledge to a given situation and provide recommendations.

*Type*	*Hours*	*Description*
Workload	Full time hours per semester
Lecture	24	Formal lectures
Independent Study	53	Preperation for end of year assessment
Independent Study	48	Reading and preperation for lectures
Total Workload: 125

Section Breakdown
CRN	10675	Part of Term	Semester 1
Coursework	20%	Examination Weight	80%
Grade Scale	40PASS	Pass Both Elements	N
Resit Category	RC1	Best Mark	N
Module Co-ordinator	Liam Hourihane	Module Teacher

Type	Description	% of total	Assessment Date
Assessment Breakdown
In Class Test	Class test	100%	Week 1

Reassessment Requirement Type
Resit arrangements are explained by the following categories; RC1: A resit is available for both^* components of the module. RC2: No resit is available for a 100% coursework module. RC3: No resit is available for the coursework component where there is a coursework and summative examination element. ^* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

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

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

Derivatives
Valuation of options - hedging - Forwards - Forward rate agreements - use of options to reduce risk.

Exchange Rate Risk
The effects of exchange-rate changes - volatility in foreign exchanges - types of foreign-exchange risk - transaction risk strategies - managing economic risk

Working Capital Management
Management of debtors,creditors and inventory - working capital cycle - cash conversion cycle - working capital policies.

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.

Indicative Reading List

Books:

Brealey, R.A. and Myers, S.C: 0, Principles of Corporate Finance,
Arnold Glen: 0, Corporate Financial Management,
Ross, A.A., Westerfield, R.W. and Jaffe, J.F: 0, Corporate Finance,
Pike, R. & Neale, B: 0, Corporate Finance & Investment: Decisions & Strategies,

Articles:
None

Other Resources

None