Module Title:Advanced Corporate Finance 2 BA in Accounting
Language of Instruction:English
Credits: 5
NFQ Level:8
Module Delivered In No Programmes
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 appraise the relationship between risk and return, conduct a financial analysis of a business entity, determine the cost of capital and advise on an optimum financing structure 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 and explain the key terms, concepts, theories and practices associated with: The relationship between risk and return, Financing a business entity; Determination of weighted average cost of capital and optimising capital structure.
LO2 Identify and apply relevant advanced corporate finance 2 techniques when presented with defined and undefined practical business problems using traditional methods and Microsoft Excel spreadsheets.
LO3 Analyse, prepare and evaluate results within an advanced corporate finance 2 framework and present recommendations using traditional methods and Microsoft Excel spreadsheets.
LO4 Critically evaluate the key theories, practices and techniques that are used to aid decision making in the area of advanced corporate finance 2.
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
Risk and Return
Relationship between risk and return; Systematic and unsystematic risk; Markowitz's portfolio theory of investment; Capital assets pricing model (CAPM).
Financing Decisions
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
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.
Spreadsheet Analysis, Data Analytics and Visualisation
Analysis of financing decisions; Optimum capital structure analysis; Weighted average cost of capital analysis; Risk and uncertainty analysis.
Assessment Breakdown%
Practical20.00%
End of Module Formal Examination80.00%
No Continuous Assessment
No Project
Practical
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Practical/Skills Evaluation Microsoft Excel Spreadsheets 2,3 20.00 Week 12
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 80.00 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 12 Weeks per Stage 3.00
Practicals 12 Weeks per Stage 1.00
Independent Learning 15 Weeks per Stage 5.13
Total Hours 125.00
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture 12 Weeks per Stage 2.00
Independent Learning 15 Weeks per Stage 6.73
Total Hours 125.00