Registry

Module Specifications

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

Module Title	Corporate Finance
Module Code	EF592
School	DCUBS
Online Module Resources
NFQ level	8	Credit Rating	5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

Description

Corporate Finance deals with the acquisition and allocation of resources among the firm's present and potential activities and projects. The principal objectives are to secure the capital structure of a firm at the lowest cost of funding, subject to the constraint of agency theory and with the objective of risk minimisation. The corporate finance function seeks also to enhance shareholder wealth.In this module students will devlop knowledge and skills in investment appraisal,funding, optimal capital structure and dividend policy.This module is delivered through a combination of weekly lectures and tutorials. Students are expected to attend lectures, to contribute to tutorials and to engage in on-line learning and research activities on a regular basis. In tutorials students will discuss solutions to problem sets and as well as expert articles. Students may also be required to work on a collaborative basis in groups for example in the case of continuous assessment.

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. Explain the determination of the company cost of capital and its relationship with the capital structure of the firm.
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. Contrast the alternatives for raising capital that are available to the firm and evaluate their strategic implications.
5. Critique the implications of market efficiency for corporate finance decisions and the interaction between the corporate finance function and capital markets

Workload	Full-time hours per semester
*Type*	*Hours*	*Description*
Lecture	24	No Description
Tutorial	8	No Description
Independent learning	10	Library work
Independent learning	15	Reading
Independent learning	15	Problem sets
Independent learning	11	Collaborative learning
Independent learning	11	Research
Examination	12	Preparation , research write up (group) assignment
Examination	19	Preparation for examination
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

Students will focus on the following topics.
Principles and Objectives of Corporate Finance.

This section 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.

This section 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.

This section 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.

This section addresses 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.

This section examines strategic oportunities 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	25%	Examination Weight	75%

Course Work Breakdown
Type	Description	% of total	Assessment Date
Project	n/a	25%	n/a

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

Ross, Westerfield and Jordan: 2008, Fundamentals of Corporate Finance, 8/e, 8th, McGraw- Hill,
Ross,Westerfield and Jaffe: 2005, 'Corporate Finance', 7th, Mc Graw-Hill International,
Brealey, Myers and Allen: 2008, 'Principles of Corporate Finance', 9th, McGraw-Hill International,

Other Resources

None

Array

Programme or List of Programmes

MFCM

MSc in Finance

PBSSA

PG Exchange(Business School)

PBSSAO

PG Study Abroad(Business School)

Timetable this semester: Timetable for EF592

Date of Last Revision