Module Title:Corporate Finance for Business
Credits: 10
NFQ Level:8
Module Delivered In 5 programme(s)
Teaching & Learning Strategies: Lectures - communication of knowledge and ideas from the lecturer to the student. Problem Solving Exercises - student will work as part of a team and will work together to resolve various business scenarios. Class Discussion/Debate - Students will be encouraged to actively participate in the class sessions which will develop their analytical and communication skills. E-Learning - It is envisaged that the module will be supported with on-line learning materials. Self-Direct Independent Learning - the emphasis on independent learning will develop a strong and autonomous work and learning practices.
Module Aim: The aim of this module is to develop theoretical and practical skills and knowledge expected of a business manager, in relation to investment, financing and dividend policy decisions (enabled by the completion of financial accounting 1, management accounting and business finance).
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Define and explain the key terms, concepts and practices for: Allocating resources to capital expenditure projects; Managing risk and return; Financing operations; Evaluating financial risk and theories on capital structure; Evaluating optimal dividend levels; and Evaluating business mergers; in the pursuit of corporate objectives.
LO2 Identify and apply appropriate corporate finance techniques when presented with defined and undefined practical business problems;
LO3 Analyse and interpret results and outcomes within a corporate finance framework and make recommendations.
LO4 Critically examine the tools and techniques that are used to aid decision-making in the area of corporate finance.
Pre-requisite learning
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.

No recommendations listed
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module.
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.
No requirements listed
 

Module Content & Assessment

Indicative Content
Objectives of Financial Management
Nature and role of financial management; Corporate objectives; Agency theory; Balancing risk and return; Current and emerging developments in finance.
Investment Appraisal and Decision-Making
The investment process; Non-discounted cash flow techniques; Discounted cash flow (DCF) techniques; Identification of a projects relevant costs and benefits; Capital market imperfections: taxation and inflation.
Risk and Return
Risk and investment appraisal (Risk adjusted discount rate; Sensitivity analysis; Scenario analysis & Probability analysis); Portfolio theory; Capital assets pricing model (CAPM).
Cost of Capital
Cost of equity capital using CAPM and dividend valuation model; Cost of debt finance and other forms of finance; Weighted average cost of capital (WACC); Effect of WACC and business valuation; Capital market efficiency.
Capital Structure Debate
Financial gearing; Business and financial risk; Traditional view of the optimal capital structure; Modigliani & Miller's capital structure theory (with & without tax); Practical influences on the optimal gearing level.
Dividend Decisions
Nature of dividends; Importance of dividends; Modigliani and Miller’s dividend irrelevance theory; Dividends as a residual; Practical influences on the level of dividends; Effect of dividend policy on financing decisions.
Business Mergers
Reasons for mergers & takeovers; Main forms of purchase consideration; Winners and losers from takeover activity; Tactics to defend against a hostile bid; Main methods for valuing shares of a business.
Assessment Breakdown%
Continuous Assessment30.00%
End of Module Formal Examination70.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Other Various 1,2,3,4 30.00 Sem 1 End
No Project
No Practical
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 70.00 End-of-Semester

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

 

Module Workload

Workload: Full Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 2.00
Tutorial Every Week 1.00
Independent Learning Every Week 4.00
Total Hours 7.00
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 1.50
Independent Learning Time Every Week 5.50
Total Hours 7.00
 

Module Delivered In

Programme Code Programme Semester Delivery
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