Registry
Module Specifications
Current Academic Year 2012 - 2013
Please note that this information is subject to change.
| |||||||||||||||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||||||||||||||
|
This module aims to ensure students have a thorough knowledge of and the ability to apply appropriate investment appraisal and working capital techniques and to equip students with the techniques and methodologies required to identify a company's financial requirements, the available financial sources, and determine the cost of borrowing. | |||||||||||||||||||||||||||||||||||||
| Learning Outcomes | |||||||||||||||||||||||||||||||||||||
|
1. Select, describe and apply appropriate investment decision criteria including consideration of non-financial factors 2. Access working capital, liquidity and funding requirements including the development of strategies to address requirements 3. Calculate the weighted average cost of capital (WACC) and discuss its relevance. Assess a company's capital structure and factors influencing the mix of equity and debt and describe the main capital market models, their application and limitations 4. Analyse the factors influencing the dividend policy and describe and apply the main dividend policy theories | |||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
|
Investment Decisions: Capital Investment Appraisal. Investment appraisal techniques; leases, risk and return, capital rationing, inflation, uncertainty and probability, non-financial factors; financing options, costs and benefits. Investment Decisions: Working Capital Management. Working capital and working capital cycle; inventory management, debtor and credit management, cash management, short, medium and long term funding requirements and strategies to address same. Determining Financial Requirements. Company's financial requirements and optimal asset mix; ratio analysis to determine the financial position and performance of a company from the perspective of fund raising; calculation of free cash-flow; key issues in the company's position/performance relevant to borrowing and raising funds.. Cost of Capital. Determining the appropriate discount rate; calculation of WACC using dividend valuation model and capital assets pricing model; application and limitations of WACC.. Capital Structure. Factors influencing a company's capital structure and mix of equity and debt; impact of varying gearing levels; capital structure theories including the relevancy theory, Modigliani Miller's irrelevancy theory, pecking order theory-assumptions, impact and limitations; portfolio theory and the Efficient market Hypothesis;. Dividend Policy. Factors influencing a company's decision on whether to pay dividend; dividend policy theories-relevancy theory, irrelevancy theory, residual theory, clientele effect, information signalling; types of distributions i.e. bonus shares and share repurchases.. | |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
| Indicative Reading List | |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
| Other Resources | |||||||||||||||||||||||||||||||||||||
| None | |||||||||||||||||||||||||||||||||||||
| Array | |||||||||||||||||||||||||||||||||||||
| Programme or List of Programmes | |||||||||||||||||||||||||||||||||||||
| PBSSA | PG Exchange(Business School) | ||||||||||||||||||||||||||||||||||||
| PDA | Professional Diploma in Accounting | ||||||||||||||||||||||||||||||||||||
| Timetable this semester: Timetable for AC559 | |||||||||||||||||||||||||||||||||||||
| Date of Last Revision | 07-JUN-11 | ||||||||||||||||||||||||||||||||||||
| Archives: |
| ||||||||||||||||||||||||||||||||||||
