Module Details
Module Code: |
BUSS H4008 |
Module Title:
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Advanced Corporate Finance 2 BA in Accounting
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Title:
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Advanced Corporate Finance 2
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Module Level:: |
8 |
Module Coordinator: |
Martin Meagher
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Module Author:: |
Andrea McNamara
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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.
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Learning Outcomes |
On successful completion of this module the learner will be able to: |
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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.
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No recommendations listed |
Co-requisite Modules
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No Co-requisite modules listed |
Additional Requisite Information
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No Co Requisites listed
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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).
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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).
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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.
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Spreadsheet Analysis, Data Analytics and Visualisation
Analysis of financing decisions; Optimum capital structure analysis; Weighted average cost of capital analysis; Risk and uncertainty analysis.
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Module Content & Assessment
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Assessment Breakdown | % |
Practical | 20.00% |
End of Module Formal Examination | 80.00% |
AssessmentsFull Time
End of Module Formal Examination |
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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 |
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Contact |
No Description |
12 Weeks per Stage |
1.00 |
12 |
Independent Learning |
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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 |
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Non Contact |
No Description |
15 Weeks per Stage |
6.73 |
101 |
Total Weekly Contact Hours |
2.00 |
Module Resources
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Recommended Book Resources |
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Watson, D. & Head, A.. (2019), Corporate Finance Principles and Practices, 8th. Pearson.
| Supplementary Book Resources |
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ACCA. Financial Management (FM) Study Text, Kaplan Publishing.
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Ward, A.. (2020), Finance Theory and Practice, 4th. Chartered Accountants Ireland.
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O'Meara, P., Walsh, S. & Power, T.. (2009), Financial Management, An Irish Text, 3rd. Gill & Macmillan Ltd.
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Atrill, P.. (2020), Financial Management for Decision-Makers, 9th. Pearson.
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Arnold, G.. (2013), Essentials of Corporate Financial Management, 2nd. Financial Times Prentice Hall.
| Recommended Article/Paper Resources |
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Journal of Banking and Finance.
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Journal of Finance.
| Supplementary Article/Paper Resources |
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Accountancy Ireland (CAI).
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Financial Management Magazine (CIMA).
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Accountancy Plus (CPA).
| Other Resources |
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Association of Chartered Certified
Accountants,
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Chartered Accountants,
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Chartered Institute of Management
Accountants,
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Institute of Certified Public
Accountants,
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Irish Times,
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Financial Times,
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Business Post,
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Independent,
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Euronext Dublin. Euronext Dublin,
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Reuters,
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Yahoo UK and Ireland Finance,
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Business World,
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Annual Reports,
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