Module Code: H8CORFIN
Long Title Corporate Finance
Title Corporate Finance
Module Level: LEVEL 8
EQF Level: 6
EHEA Level: First Cycle
Credits: 10
Module Coordinator:  
Module Author: DAVE CORMACK
Departments:  
Specifications of the qualifications and experience required of staff  
Learning Outcomes
On successful completion of this module the learner will be able to:
# Learning Outcome Description
LO1 Demonstrate knowledge of the fundamentals of investment analysis, in particular the theory of time value of money
LO2 Demonstrate understanding of the theoretical and practical considerations inherent in the capital investment decision
LO3 Evaluate different types of securities and pricing of bond and equity securities
LO4 Develop and critically assess appropriate strategies intended to effectively manage an organisation's corporate financing including issuing securities
LO5 Examine the significant interrelationships between mergers, acquisitions and corporate control within the firm.
LO6 Critically evaluate the theoretical and practical issues inherent in financial planning and investment decisions.
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is required before enrolment on this module. While the prior learning is expressed as named NCI module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
No recommendations listed
Co-requisite Modules
No Co-requisite modules listed
Entry requirements  
 

Module Content & Assessment

Indicative Content
Introduction to Corporate Finance: Week 1-2
• Role of the Financial Manager, Corporate Financier, Research Analyst, • Financial Management Decisions • Forms of Business Organisation – Sole Proprietor, Partnership, Corporations • Corporate Finance Transactions, Chinese Walls • Agency Problems
Financial Analysis and Planning: Week 3
• Analysing Financial Statements – Ratio Analysis • Measuring Company Performance – Liquidity, Solvency, Profitability • Time-trend analysis and Peer Group Analysis • Financial Growth and Planning
Investment Analysis – Fundamentals of Security Valuation: Week 3-4
• Time Value of Money – Net Present Value as a method of Investment Appraisal • NPV and other Investment Criteria – Payback Rule, IRR, DCF, Accounting Returns, Profitability Index • Perpetuities and Annuities • Gordon’s Growth Model
Valuing Equity: Week 5-6
• Common Stock Characteristics • Stock Market • Book Value, Liquidation Values and Market Values • Valuing Common Stocks • Growth and Income Stocks
Debt Financing and Bonds – Valuing Bonds: Week 6-7
• Short Term Sources of Finance (Bank Loans, Commercial Paper, Secured Loans) • Long term debt finance • Credit risk, Security • Leasing • Bond Characteristics, Bond Prices and Duration • Nominal and Real rates of Interest – Inflation • The Yield Curve • Effective Annual Interest Rates • Future Values and Compound Interest
Corporate Financing: Week 8-9
• Preferred stock versus common stock • Corporate Debt • Innovation in the Debt Market • Convertible Securities • Patterns of Corporate Finance
Dividends and Mergers and Acquisition Activity: Week 10-11
• The Dividend Decision • Merger/Acquisition Decision • Shareholder value and economic value added • Motives for mergers • Evaluation mergers and tactics for mergers • Leverage and Capital Structure • Weighted Average Cost of Capital Evaluation (WACC) • ‘Irrelavance’ Argument • The Optimal Corporate Structure
Working Capital: Week 12
• Working Capital Management – sources of funding • Links between Long and Short Term Financing • Changes in Cash and Working Capital • Poor working capital management and its consequences and remedies • Cash Budgeting and Cash Management
How Corporations Issue Securities: Week 13
• Venture Capital • Initial Public Offerings (IPO’s) • Underwriters • General Cash Offers by Public Companies • The Private Placement
Assessment Breakdown%
Coursework30.00%
End of Module Assessment70.00%

Assessments

Full Time

Coursework
Assessment Type: Project % of total: 30
Assessment Date: n/a Outcome addressed: 1,2,3,4,5
Non-Marked: No
Assessment Description:
The continuous assessment will be a project based assignment focusing on a real world corporate finance case. The Learner must show a clear understanding of the underlying areas within corporate finance to which the case/information pertain. They must also demonstrate a comprehensive knowledge of the case at hand and be capable of critically evaluating the evidence. The Learner must present his/her findings in a clear and coherent manner
End of Module Assessment
Assessment Type: Terminal Exam % of total: 70
Assessment Date: End-of-Semester Outcome addressed: 1,2,3,4,5,6
Non-Marked: No
Assessment Description:
End-of-Semester Final Examination
No Workplace Assessment

NCIRL reserves the right to alter the nature and timings of assessment

 

Module Workload

Module Target Workload Hours 0 Hours
Workload: Full Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture No Description 4 Every Week 4.00
Independent Learning No Description 198 Once per semester 16.50
Total Weekly Contact Hours 4.00
Workload: Part Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture No Description 4 Every Week 4.00
Independent Learning Time No Description 198 Once per semester 16.50
Total Weekly Contact Hours 4.00
 

Module Resources

Recommended Book Resources
  • Brealey R.A., and Myers S.C., Marcus A.. (2008), Fundamentals of Corporate Finance, 6th. McGraw Hill.
Supplementary Book Resources
  • Ross, S.A.. Randoph, W.W., Jaffe, J. & Jordan, B.D. (2008), Modern Financial Management, McGraw Hill.
  • Ross, S.A., Westerfield R.W. & Jordan, B.D. (2008), Essentials of Corporate Finance, McGraw Hill.
This module does not have any article/paper resources
This module does not have any other resources
Discussion Note: