Registry
Module Specifications
Archived Version 2020 - 2021
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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. | |||||||||||||||||||||||||||||||||||||
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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. | |||||||||||||||||||||||||||||||||||||
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 ..The object of the firmThe role of the financial manager - corporate goals and corporate governance - economic factors that impact on the financial goals of the firm.Time value of MoneyQuantitative methods of financial management - financial analysis - managers - individual investors - techniques for valuation of different classes of securities - money markets - bonds - shares.Investment AppraisalCriteria 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 CAPMCost of CapitalCalculate the cost of the various instruments and the weighted cost of capital (WACC)Portfolio TheoryCalculation of the expected returns and standard deviation for shares - combination of investments - efficient frontier - choosing the optimal portfolio - benefits of diversification.Dividend PolicyThe dividend puzzle, Lintner model, M&M irrelevancy argument, clientele and signaling effects | |||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||
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