Short Title:Corporate Finance
Full Title:Corporate Finance
Module Code:FNCE H4001
 
NFQ Level:8
 
ECTS Credits:5
Reviewed By:MARTIN NOLAN
Description:This module, in conjunction with Corporate Finance 2, aims to build on the theoretical and practical knowledge gained in Financial Management 1 and 2 and give students an appreciation of the key strategic issues affecting company finance.
Learning Outcomes:
On successful completion of this module the learner will be able to
  1. Discuss the financial strategy formulation of a business enterprise
  2. Describe and discuss the role and importance of corporate governance in Irish business.
  3. Apply and appraise different approaches to the valuation of businesses for merger, takeover or disposal.
  4. Apply investment appraisal techniques in the context of foreign currencies.
  5. Explain the importance of portfolio theory in making investment decisions
  6. Apply and critique the use of Capital Asset Pricing Model in the calculation of company cost of equity and weighted average cost of capital.
  7. Identify the relevant sources of finance and assess the impact on the capital structure, taking account of the major theories in the area.
  8. Identify, explain and evaluate corporate finance theories in the context of real-life business issues described in the business press.
 

Module Content & Assessment

Content (The percentage workload breakdown is inidcative and subject to change)
  • Objectives of organisations (including 'not for profit' organisations) (5%)
    Corporate and Financial Strategy Objectives of Business Enterprises Financial and Non-financial objectives Objectives of Publicly owned and non-commercial bodies Financial Management Decisions
  • Corporate governance: (10%)
    Patterns of Share Ownership Potential Sources of Conflict UK and International Corporate Governance Recent Developments / Current Issues Corporate Governance in Ireland Companies Act 2003
  • Strategy formulation: (10%)
    Planning Issues Planning and Strategy Financial Controls Growth Strategies Mergers and Acquisitions Pricing Strategic issues in Practice
  • Investment decisions: (15%)
    NPV and IRR methodologies Relevant costs and benefits method Foreign currency project appraisal
  • Valuation of companies and the Valuation of debt: (10%)
    Company Valuation methodologies Convertibles and warrants Valuation of debt Efficient Market Hypothesis
  • Portfolio theory: (10%)
    Expected Returns and standard deviations Correlation and covariance Investor preferences Risk free investments Capital Market Line Diversification Practical Application of Portfolio Theory Problems with Portfolio Theory
  • The capital asset pricing model: (15%)
    Systematic and unsystematic risk Beta – meaning and calculation CAPM formula Alpha values Practical problems with CAPM CAPM and portfolios Other pricing models Cost of Capital calculation, using CAPM
  • Cost of capital: (10%)
    Valuation of Equity using CAPM Weighted Average Cost of Capital using CAPM
  • Capital structure and advanced valuation techniques: (15%)
    Financial Risk, gearing and cost of capital Choosing a Capital Structure Traditional Theory Modigliani and Miller without taxation Modigliani and Miller with taxation Arbitrage Proofs Real World influences on Capital Structure
Assessment Breakdown%
Course Work30%
End of Semester Formal Examination70%
 Outcome addressed% of totalAssessment Date
Formal End-of-Semester Examination1,2,3,4,5,6,7,870%Semester End
Coursework Breakdown
TypeDescriptionOutcome addressed% of totalAssessment Date
Continuous AssessmentThe continuous assessments will be in the form of(a) an in-class time constrained closed book test covering one or more of the learning outcomes; and (b) a short project based on a current issue in the financial press to be presented to peers.30n/a

IT Tallaght reserves the right to alter the nature and timings of assessment

 

Module Workload & Resources

This course has no full time workload.
Resources
Required Book Resources
  • ACCA Paper 3.7, Strategic Financial Management, (Dec 06 and June07) Ed., BPP Study Text
Recommended Book Resources
  • Arnold, G.,, Corporate Financial Management, Latest Ed.
  • Power, O’Meara, Walsh, Financial Management, 1st Ed.
Required Article/Paper Resources
  • Financial Times n/a
  • Sunday Business Post n/a
  • Accountancy (UK) Journal ICAEW n/a
  • Accountancy Ireland Journal ICAI n/a
  • Accountancy Age Journal n/a
  • Accountancy Plus Journal ICPAI n/a
  • Business and Finance Journal n/a
Other Resources
  • www.infotrac.galegroup.com/itweb/tallaght: n/a
  • www.accaglobal.com/students/: n/a
  • www.cimaglobal.com: n/a
  • www.cpaireland.ie: n/a
  • www.icai.ie: n/a
  • www.icaew.co.uk: n/a
  • http://www.businessweek.com/: n/a
  • http://www.rte.ie/business/: n/a
  • http://news.ft.com/home/europe: n/a
  • http://money.cnn.com/markets/news/index.html: n/a
  • http://www.smartmoney.com/: n/a