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Module Title |
Corporate and Investment Finance
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Module Code |
EF562
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School |
DCUBS
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Online Module Resources
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Level |
5
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Credit Rating |
5
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Pre-requisite |
None
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Co-requisite |
None
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Module Aims
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To expose students to the study of finance and to provide a comprehensive appreciation of the theoretical framework and analytical techniques of the discipline.
To equip students with the competence to deal with complex aspects of the financial management of a corporation.
To develop an understanding of the methods of capital investment appraisal and their suitability under different operational circumstances.
In particular, to develop an awareness of the strategic importance of long-term financing and dividend decisions.
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Learning Outcomes
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On completion, students will have acquired an in-depth knowledge of the workings of the financial markets and the competence to evaluate investment possibilities from both the capital market and corporate perspectives.
The students will have the ability to assess the contribution to shareholder value of capital investments and the capability to manage a firm's investment and financing programmes to ensure the optimum employment of resources.
On completion of this module, students will have the competence to evaluate the alternative sources of finance and their suitability under different circumstances and varying corporate objectives.
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Indicative Time Allowances
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Hours
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Lectures |
24
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Tutorials |
6
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Laboratories |
0
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Seminars |
0
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Independent Learning Time |
45
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Total |
75
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Placements |
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Assignments |
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NOTE
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Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.
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Indicative Syllabus
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* Valuation of Cashflows:
Review of financial mathematics, future and present values, value of cashflows, valuing debt and equity.
* Capital Budgeting:
Detailed analysis of theoretical appraisal methods, importance of opportunity cost, capital budgeting techniques in the context of valuation models, disinvestment and abandonment, treatment of taxation and inflation in capital budgeting, performance evaluation, policy and strategic considerations.
* Cost of Capital:
Risk and return, theoretical approaches to costing capital for investment appraisal decisions, the cost of equity, the cost of debt instruments and the weighted average cost of capital.
* Capital Structure:
The nature of gearing and financing risk, theories of capital structure, capital structure decisions in imperfect markets, cost of capital under varying degrees of business and financial risk.
* Dividend Policy:
The dividend decision as a policy variable, arguments for relevance and irrelevance and consideration of competing theories.
* Sources of Finance:
Short and long-term sources of finance, management of cash and working capital, money and bond markets, equity market, hybrids and derivatives. Including issue procedures, characteristics and availablity of the various types of finance.
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| Assessment | | Continuous Assessment | 20% | Examination Weight | 80% |
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Indicative Reading List
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Brealey, R. and Myers, S., 'Principles of Corporate Finance' 7th edition, McGraw Hill, 2003
Ross, A.A., Westerfield, R.W., and J.F. Jaffe, 'Corporate Finance' 6th edition, McGraw Hill, 2002
Stern, J. and D. Chew, 'The Revolution in Corporate Finance' 4th edition, Blackwell, 2003
Lumby, S. and C. Jones, 'Investment Appraisal and Financial Decisions' 6th edition, Chapman & Hall, 1999
Grinblatt, Mark and Sheridan Titman, 'Financial Markets and Corporate Strategy' 2nd edition, McGraw Hill, 2002
Arnold, Glen, 'Corporate Financial Management' 2nd edition, FT Prentice Hall, 2002
Pike, R and B. Neale, 'Corporate Finance and Investment: Decisions and Strategies' 4th edition, FT Prentice Hall 2003
Rutterford, J., 'Financial Strategy: Adding Stakeholder Value' Wiley, 1998
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Programme or List of Programmes
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| MBS | MBS in Accounting |
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