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Module Specifications

Archived Version 2020 - 2021

Module Title
Module Code

Online Module Resources

NFQ level 9 Credit Rating 7.5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None

The purpose of this module is to provide students with an understanding of how firms make 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, dividend payout and treasury policy are also examined. Decisions relating to long-term managerial policies and the integration of corporate finance with other areas of finance is also covered. Students are expected to participate in weekly lectures.

Learning Outcomes

1. Appraise the strategic objectives and decision framework of corporate finance, subject to the maximisation of shareholder wealth and subject to agency theory.
2. Understand issues surrounding corporate governance in order to identify factors associated with superior decision-making.
3. Evaluate different methodologies and theoretical approaches to valuing investment projects and companies, incorporating forecasting cash flows at a project specific level and at a corporate level, and analysing risk and return.
4. Explain the determination of the company cost of capital and its relationship with the capital structure of the firm.
5. Contrast the alternatives for raising capital that are available to the firm and evaluate their strategic implications.
6. Evaluate factors affecting dividend decisions by firms.

Workload Full-time hours per semester
Type Hours Description
Lecture36Formal lectures and problem-based learning
Independent Study30Library work
Independent Study60Directed reading
Independent Study60Problem sets
Directed learning101.5Preparation for tests
Total Workload: 287.5

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
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
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
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 dividend policy and the literature relating to the proposition of an optimal capital structure for a firm.

Sources of Finance
Addressing 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.

Strategic Creation of Shareholder Wealth
Examining strategic opportunities as a source of enhancing shareholder wealth. It looks at mergers and acquisitions activity and reviews the empirical evidence. It also looks at the impact of long-term managerial policy and how it impacts firm value.

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

  • Richard Brealey and Stewart Myers: 2016, Principles of Corporate Finance, 12, Mc-Graw Hill,
  • D. Hillier, S. Ross, R. Westerfield, J. Jaffe, B. Jordan: 2016, Corporate Finance, 3rd, Mc-Graw Hill,
Other Resources

Programme or List of Programmes