Registry
Module Specifications
Archived Version 2023 - 2024
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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. | |||||||||||||||||||||||||||||||||||||||||
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 |
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Indicative Content and
Learning Activities Mergers and AcquisitionsDeterminants of synergy - identifying value in the acquisition - approaches to funding the acquisition - the conisurance effect - defensive tactics.DerivativesValuation of options - hedging - Forwards - Forward rate agreements - use of options to reduce risk.Exchange Rate RiskThe effects of exchange-rate changes - volatility in foreign exchanges - types of foreign-exchange risk - transaction risk strategies - managing economic riskWorking Capital ManagementManagement of debtors,creditors and inventory - working capital cycle - cash conversion cycle - working capital policies.Capital StructureThe 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. | |||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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