| Title: | Corporate Finance |
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| Long Title: | Corporate Finance |
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| Field of Study: |
Banking, Finance and Investment
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| Valid From: |
Semester 1 - 2017/18 ( September 2017 ) |
| Module Coordinator: |
CAROLINE O REILLY |
| Module Author: |
CAROLINE O REILLY |
| Module Description: |
This module enables the student to prepare a financial analysis in order to advise on key investment and financing decisions and to recognise, assess and proactively manage financial risks faced by organisations. |
| Learning Outcomes |
| On successful completion of this module the learner will be able to: |
| LO1 |
Evaluate and advise on the suitability, financially and otherwise of proposed capital investments. |
| LO2 |
Assess an organisations financing needs and advise on an appropriate capital structure. |
| LO3 |
Recognise, assess and manage foreign currency and interest rate risks. |
| LO4 |
Calculate an organisation's weighted average cost of capital and explain its significance. |
| LO5 |
Recognise and assess risk and uncertainty when making investment decisions. |
| LO6 |
Explain and discuss the relationship between investment risk and return. |
| Pre-requisite learning |
Module Recommendations
This is prior learning (or a practical skill) that is strongly recommended before enrolment in this module. You may enrol in this module if you have not acquired the recommended learning but you will have considerable difficulty in passing (i.e. achieving the learning outcomes of) the module. While the prior learning is expressed as named CIT module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s). |
|
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module. You may not earn additional credit for the same learning and therefore you may not enrol in this module if you have successfully completed any modules in the incompatible list. |
| No incompatible modules listed |
Co-requisite Modules
|
| No Co-requisite modules listed |
Requirements
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed. You may not enrol on this module if you have not acquired the learning specified in this section.
|
| No requirements listed |
Module Content & Assessment
| Indicative Content |
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Capital Investment Decisions
Discounted Cash Flow, Net Present Values, internal rate of return, taxation, inflation,capital rationing
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Capital Structures
Gearing Structure, Term Structure and related considerations
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Foreign Currency Risk
Translation, Transaction and Economic Risks. Matching, Leading & Lagging, Netting, Forward Contracts, Money Market, Hedges, Currency Options. Interest rate swaps and options
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Costs of Finance
Cost of equity, redeemable and iredeemable debt. Dividend Growth Model and Capital, Weighted Average Cost of Capital (WACC).
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Risk and Uncertainty
Sensitivity Analysis, Certainty equivalents, Probability Theory, Expected values, Standard deviation, Maximax, Minimax
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Risk & Return
Portfolio Theory, Systematic and Unsystematic Risk, Beta Factors, Capital Asset Pricing Model.
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| Assessment Breakdown | % |
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| Course Work | 30.00% |
| End of Module Formal Examination | 70.00% |
| Course Work |
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| Assessment Type |
Assessment Description |
Outcome addressed |
% of total |
Assessment Date |
| Short Answer Questions |
Topics include: Capital Investments, structure, foreign currency risks, risks and return. |
1,2,3,6 |
30.0 |
Week 6 |
| End of Module Formal Examination |
|---|
| Assessment Type |
Assessment Description |
Outcome addressed |
% of total |
Assessment Date |
| Formal Exam |
End-of-Semester Final Examination |
1,2,3,4,5,6 |
70.0 |
End-of-Semester |
| Reassessment Requirement |
Repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a coursework element.
|
The institute reserves the right to alter the nature and timings of assessment
Module Workload
| Workload: Full Time |
| Workload Type |
Workload Description |
Hours |
Frequency |
Average Weekly Learner Workload |
| Lecture |
Lecture |
3.0 |
Every Week |
3.00 |
| Tutorial |
Student Led Tutorial |
1.0 |
Every Week |
1.00 |
| Independent & Directed Learning (Non-contact) |
Self Study |
3.0 |
Every Week |
3.00 |
| Total Hours |
7.00 |
| Total Weekly Learner Workload |
7.00 |
| Total Weekly Contact Hours |
4.00 |
| Workload: Part Time |
| Workload Type |
Workload Description |
Hours |
Frequency |
Average Weekly Learner Workload |
| Lecture |
Lecture |
2.0 |
Every Week |
2.00 |
| Independent & Directed Learning (Non-contact) |
Self Study |
5.0 |
Every Week |
5.00 |
| Total Hours |
7.00 |
| Total Weekly Learner Workload |
7.00 |
| Total Weekly Contact Hours |
2.00 |
Module Resources
| Recommended Book Resources |
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- BPP Learning Media Limited 2015, Advanced Financial Management, 8th Ed. [ISBN: 9781472744302]
- Griffith College 2007, Financial Management, 2nd Ed., Griffith College Dublin
| | Supplementary Book Resources |
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- Power, Walsh & o Meara 2009, Financial Management, An Irish Text, 3rd Ed., 20, Gill & Macmillan Limited Dublin [ISBN: 9780717145546]
- Arnold 2013, Corporate Financial Management, 5th Ed., FT Pitman [ISBN: 0273630784]
| | This module does not have any article/paper resources |
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| Other Resources |
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- Website: Financial Times
- Website: Chartered Association of Certified
Accountants
- Website: Irish Stock Exchange
- Journal: Certified Accountant
- Journal: Financial Director
- Journal: Business & Finance
- Journal: Accounting and Business
- Journal: Accountancy Ireland
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Module Delivered in
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