Registry

Module Specifications

Current Academic Year 2012 - 2013
Please note that this information is subject to change.

Module Title	Finance
Module Code	EF581
School	DCUBS
Online Module Resources
Module Teacher	Liam Hourihane
NFQ level	8	Credit Rating	5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

Description

The purpose of this module is to introduce students to the key financial issues faced by modern-day financial managers of corporations. The course will also equip students with conceptual and analytical skills necessary to make financial decisions. Topics to be covered include capital asset pricing model (CAPM), arbitrage pricing model (APT), valuation of firms and projects, real options, capital structure, dividends policy and mergers and acquisitions. The module is delivered through a combination of lectures and tutorials.

Learning Outcomes

1. Explain the assumed objective of corporate finance and the role of the financial manager
2. Analyse the concept of time value of money and its relevance within the context of longtermdecision-making.
3. Apply a range of computational techniques to a variety of corporate investment appraisalproblems
4. Interpret and evaluate findings from empirical studies relating to corporate financedecision-making.
5. Examine the key interrelationships between the alternative strategic financial management decisions and financial value

Workload	Full-time hours per semester
*Type*	*Hours*	*Description*
Lecture	24	Formal lectures
Tutorial	3	No Description
Independent learning	71	Preparation for lectures - reading and problems
Independent learning	9	Tutorial preparation - attempt problem sheet
Independent learning	18	Revision
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

Introduction.
Objectives of the firm, the role of the corporate treasurer within corporate financial management, treasury policy and control..

Valuation of Securities.
Valuation of cashflows, valuation of equity and bonds.

Capital Budgeting Techniques and Strategy.
NPV, IRR and alternative investment criteria, investment decisions and risk, organisation of capital expenditure and evaluation of performance.

Sources and Costs of Funds.
Introduction to long-term sources of funds, cost of equity capital, cost of debt capital, the weighted average cost of capital (WACC)..

Capital Structure Determination.
Can an optimal debt-equity ratio be determined, Modigliani and Miller propositions, the role of taxes, agency theory, signaling and limits to the use of debt..

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

Mergers and Acquisitions.
Determinants of synergy, valuation of business, impact of funding, defensive tactics..

Assessment Breakdown
Continuous Assessment	0%	Examination Weight	100%

Course Work Breakdown
Type	Description	% of total	Assessment 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
This module is category 1

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

None

Array

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