Module Details

Module Code: BUSS H4008
Module Title: Advanced Corporate Finance 2 BA in Accounting
Title: Advanced Corporate Finance 2
Module Level:: 8
Credits:: 5
Module Coordinator: Martin Meagher
Module Author:: Andrea McNamara
Domains:  
Module Description: 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 will be able to:
# Learning Outcome Description
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.
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.
No recommendations listed
Co-requisite Modules
No Co-requisite modules listed
Additional Requisite Information
No Co Requisites listed
 
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.
Module Content & Assessment
Assessment Breakdown%
Practical20.00%
End of Module Formal Examination80.00%

Assessments

Full Time

No Continuous Assessment
No Project
Practical
Assessment Type Practical/Skills Evaluation % of Total Mark 20
Timing Week 12 Learning Outcomes 2,3
Non-marked No
Assessment Description
Microsoft Excel Spreadsheets
End of Module Formal Examination
Assessment Type Formal Exam % of Total Mark 80
Timing End-of-Semester Learning Outcomes 1,2,3,4
Non-marked No
Assessment Description
End-of-Semester Final Examination

SETU Carlow Campus reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact No Description 12 Weeks per Stage 3.00 36
Practicals Contact No Description 12 Weeks per Stage 1.00 12
Independent Learning Non Contact No Description 15 Weeks per Stage 5.13 77
Total Weekly Contact Hours 4.00
Workload: Part Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact No Description 12 Weeks per Stage 2.00 24
Independent Learning Non Contact No Description 15 Weeks per Stage 6.73 101
Total Weekly Contact Hours 2.00
 
Module Resources
Recommended Book Resources
  • Watson, D. & Head, A.. (2019), Corporate Finance Principles and Practices, 8th. Pearson.
Supplementary Book Resources
  • ACCA. Financial Management (FM) Study Text, Kaplan Publishing.
  • Ward, A.. (2020), Finance Theory and Practice, 4th. Chartered Accountants Ireland.
  • O'Meara, P., Walsh, S. & Power, T.. (2009), Financial Management, An Irish Text, 3rd. Gill & Macmillan Ltd.
  • Atrill, P.. (2020), Financial Management for Decision-Makers, 9th. Pearson.
  • Arnold, G.. (2013), Essentials of Corporate Financial Management, 2nd. Financial Times Prentice Hall.
Recommended Article/Paper Resources
  • Journal of Banking and Finance.
  • Journal of Finance.
Supplementary Article/Paper Resources
  • Accountancy Ireland (CAI).
  • Financial Management Magazine (CIMA).
  • Accountancy Plus (CPA).
Other Resources
Discussion Note: