DCU Home | Our Courses | Loop | Registry | Library | Search DCU

Registry

Module Specifications

Archived Version 2021 - 2022

Module Title Business Finance
Module Code EF576
School DCUBS

Online Module Resources

Module Co-ordinatorDr Michael DowlingOffice NumberQ150
NFQ level 9 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None
Description

This module is designed to provide students with a comprehensive understanding of financial management. We take the perspective of the corporate financial manager who wishes to determine the most appropriate and effective ways of acquiring and allocating capital to increase the wealth of shareholders. Therefore, the objective of the module is to equip the corporate financial manager with the tools available to create value from the firm's financing and investment activities. We begin by identifying benefits and limitations of the different governance frameworks and the objective function that will help guide decision-making. We then continue by analysing and evaluating investments using various techniques. We follow this by considering the various sources of finance available to firms and factors that drive firm choice regarding capital structure. We will study several issues related to financial management such as dividend policy, how to maximise corporate value, and the financial implications of using various derivative instruments.

Learning Outcomes

1. examine the objective of financial management, its importance to organizations, and governance principles that will facilitate sound decision making
2. appraise capital investments through the use of appropriate methods and techniques
3. identify and make allowance for the relationship exhibited by financial markets between risk and return
4. evaluate the different sources of finance
5. discuss how businesses create value
6. explain the reasons why firms use derivatives and distinguish between forwards, futures and options



Workload Full-time hours per semester
Type Hours Description
Lecture24No Description
Independent Study24Readings
Independent Study24Problem sets
Independent Study33Assignment (report/presentation
Independent Study20Exam preparation
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

Principles and Objectives of Corporate Finance
This section 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
This section 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
This section 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 capital structure and the literature relating to the proposition of an optimal capital structure for a firm.

Sources of Finance
This section addresses 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.

Dividend Policy
This section addresses decisions regarding disbursements of gains from investments - whether they are returned to shareholders or re-invested back into the firm and addresses the implications of this decision for firm value.

Assessment Breakdown
Continuous Assessment100% Examination Weight0%
Course Work Breakdown
TypeDescription% of totalAssessment Date
Reassessment Requirement
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
Unavailable
Indicative Reading List

  • Richard A. Brealey and Stewart C. Myers: 2013, Principles of Corporate Finance, 11th, McGraw Hill Higher Education,
  • David Hillier, Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, Bradford D. Jordan,: 0, Corporate Finance, 1, 0077121155
Other Resources

None
Programme or List of Programmes
MBAMasters in Business Administration
Archives: