Module Title:Advanced Corporate Finance for Accounting
Language of Instruction:English
Credits: 10
NFQ Level:8
Module Delivered In 3 programme(s)
Teaching & Learning Strategies: Lectures - Communication of knowledge and ideas from the lecturer to the student. Problem Solving Exercises - Students 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 strong and autonomous work and learning practices.
Module Aim: The aim of this module is to further develop the theoretical and practical skills and knowledge introduced in the module Corporate Finance. Students will be able to carry out effective investment appraisal, appraise the relationship between risk and return, determine the cost of capital, advise on an optimum financing structure, discuss and apply financial risk management techniques and conduct a financial analysis of a business entity using microsoft excel. The depth and breadth of the module content and assessment are designed to gain maximum exemptions from professional accountancy bodies, appropriate to a B.A. (Honours) in Accounting programme.
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Define, explain and critically discuss the key terms, concepts and practices associated with: The allocation of resources to investment opportunities; The relationship between risk and return; Financing a business entity; Determination of weighted average cost of capital; Optimising capital structure and dividend levels; and The management of foreign currency and interest rate risk.
LO2 Identify and apply appropriate advanced corporate finance techniques when presented with defined and undefined practical business problems;
LO3 Analyse and interpret results and outcomes within an advanced corporate finance framework and make recommendations.
LO4 Critically examine the tools and techniques that are used to aid decision-making in the area of advanced corporate finance.
LO5 Apply the tools and techniques of advanced corporate finance, evaluate results and develop solutions to practical business problems using Microsoft Excel Spreadsheets.
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
Advanced Investment Appraisal (20%)
The investment process; Investment appraisal techniques - payback period, accounting rate of return, net present value, internal rate of return and discounted payback period (application, comparison and evaluation); Identification of project relevant cash flows (including taxation and inflation effects); Qualitative issues; Single-period capital rationing; Adjusting for risk and uncertainty.
Risk and Return (10%)
Relationship between risk and return; Systematic and unsystematic risk; Markowitz's portfolio theory of investment; Capital assets pricing model (CAPM).
Financing Decisions (15%)
Leasing versus borrowing to buy; Methods of share valuation; Characteristics and valuation of bonds (including convertible bonds); Term structure of interest rates; Evaluation of selected financing choices on shareholder wealth (earnings per share, share price).
Cost of Capital and Capital Structure (20%)
Cost of equity capital using CAPM and dividend valuation model; Cost of debt finance and other forms of finance; Determination of Weighted average cost of capital (WACC) (book and market value); Benefits and limitations of WACC; Average and marginal WACC; Effect of WACC on business valuation and investments; Measurement and evaluation of financial gearing; Business and financial risk; Optimum capital structure debate and assumptions - Traditional view; Modigliani and Miller’s view (with and without tax); Market imperfections; Pecking order theory; Practical influences on the optimal gearing level.
Dividend Policy Analysis (5%)
Effect of dividend decisions on financing and investment decisions; Effect of dividends on shareholder wealth; Dividend relevance and irrelevance theories; Practical influences on the level of dividends; Dividend policies.
Financial Risk Management (15%)
Nature and types of foreign currency and interest rate risk; Causes of exchange rate differences and interest rate fluctuations; Traditional foreign currency and interest rate risk management techniques (discussion and application); Foreign currency and interest rate derivatives (identification and explanation only).
Spreadsheet Analysis (15%)
Investment appraisal - incremental cash flow analysis; Analysis of financing decisions; Optimum capital structure analysis; Weighted average cost of capital analysis; Risk and uncertainty analysis.
Assessment Breakdown%
Continuous Assessment15.00%
Practical15.00%
End of Module Formal Examination70.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Other Class Assessment / Project / Presentation / Case Study 1,2,3,4 7.50 Week 12
Other Class Assessment / Project / Presentation / Case Study 1,2,3,4 7.50 Week 24
No Project
Practical
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Practical/Skills Evaluation Microsoft Excel Spreadsheets 5 15.00 Week 25
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 3.00
Practicals Every Week 0.50
Independent Learning Every Week 4.00
Total Hours 7.50
 

Module Delivered In

Programme Code Programme Semester Delivery
CW_BBACT_B Bachelor of Arts (Honours) in Accounting 3 Mandatory
CW_BBACF_B Bachelor of Business (Honours) in Accounting & Finance 4 Mandatory
CW_BBACF_B_OLD2 Bachelor of Business (Honours) in Accounting & Finance - Add on 4 Mandatory