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Module Specifications

Archived Version 2019 - 2020

Module Title
Module Code

Online Module Resources

NFQ level 8 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None

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. Solve problems in a financial and business context and to use appropriate financial techniques in order to make decisions from various options
2. Select and defend the use of appropriate models for valuing assets and opportunities
3. Calculate and compare the present and future value of money for planning purposes.
4. Critically evaluate the theoretical and practical considerations inherent in the capital investment decision
5. Apply business finance knowledge to a given situation and provide recommendations.

Workload Full-time hours per semester
Type Hours Description
Lecture24Formal lectures
Tutorial9Review of class material
Directed learning1Class test
Directed learning18Preperation for tutorial
Directed learning40Prepaeration for terminal examination
Independent Study10Preperation for class test
Independent Study23Reading and preperation for lectures
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


The object of the firm
The role of the financial manager - corporate goals and corporate governance - economic factors that impact on the financial goals of the firm.

Time value of Money
Quantitative methods of financial management - financial analysis - managers - individual investors - techniques for valuation of different classes of securities - money markets - bonds - shares.

Investment Appraisal
Criteria to guide investment decisions in both physical and financial assets - payback - net present value - internal rate of return - accounting rate of return profitability index - capital rationing - inflation - tax - uncertainity - non financial factors - sensitivity analysis.

Capital Asset Pricing Model (CAPM)
- unsystematic risk - systematic risk - capital market line - security market line - applications of CAPM

Cost of Capital
Calculate the cost of the various instruments and the weighted cost of capital (WACC)

Portfolio Theory
Calculation of the expected returns and standard deviation for shares - combination of investments - efficient frontier - choosing the optimal portfolio - benefits of diversification.

Dividend Policy
The dividend puzzle, Lintner model, M&M irrelevancy argument, clientele and signaling effects

Assessment Breakdown
Continuous Assessment% Examination Weight%
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
Indicative Reading List

  • 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,
Other Resources

Programme or List of Programmes