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Module Catalogue

SCQF Level: 09  

Module Code: ANF301

Credit Value: 20  

Year: 2017/8

Term: Term 2

School: Dundee Business School

Description

An introductory module on corporate finance.

Aims

The aim of this module is to provide the student with: knowledge of the main sources of corporate finance and the ability to apply key techniques for using and managing financing in large and small organisations.

Learning Outcomes

By the end of this module the student should be able to:

1.  demonstrate an understanding of some of the key theoretical concepts in corporate finance. in corporate finance;

1.  demonstrate an understanding of some of the key theoretical concepts in corporate finance. in corporate finance;

2.  analyse the impact of risk on various business and financial decisions.

2.  analyse the impact of risk on various business and financial decisions.

Indicative Content

1 Risk and Uncertainty

Use of probabilities. Atttitudes to risk and expected values. The expected value/standard deviation criterion. Risk analysis in practice.

1 Risk and Uncertainty

Use of probabilities. Atttitudes to risk and expected values. The expected value/standard deviation criterion. Risk analysis in practice.

2 Portfolio Theory and Capital Asset Pricing Model

Return and risk of combining investments. The Capital Asset Pricing Model.

2 Portfolio Theory and Capital Asset Pricing Model

Return and risk of combining investments. The Capital Asset Pricing Model.

3 Stock Market Efficiency

Tests of market efficiency. Time, seasonal and other market anomolies. Implications of the efficient market hypothesis.

3 Stock Market Efficiency

Tests of market efficiency. Time, seasonal and other market anomolies. Implications of the efficient market hypothesis.

4 Share price Valuation and the Cost of Capital

Dividends and share values. CAPM and share values. Valuation based on earnings and on cash flow. Valuation of a company. The cost of equity and debt capital. Overall cost of capital -weighted average cost approach.

4 Share price Valuation and the Cost of Capital

Dividends and share values. CAPM and share values. Valuation based on earnings and on cash flow. Valuation of a company. The cost of equity and debt capital. Overall cost of capital -weighted average cost approach.

5 Sources and cost of Funds

Issuing equity share capital and the rights of the owners of equity. Rights issues and bonus issues. Preferenec shares. Loan stocks and debentures. the cost of capital.

5 Sources and cost of Funds

Issuing equity share capital and the rights of the owners of equity. Rights issues and bonus issues. Preferenec shares. Loan stocks and debentures. the cost of capital.

6 Capital structure and Dividend Policies

Traditional Modigliani & Miller views of capital structure. Capital structure and corporate and personal taxes. Financial Distress. Influences on dividend decisions. The value of dividend payments.

6 Capital structure and Dividend Policies

Traditional Modigliani & Miller views of capital structure. Capital structure and corporate and personal taxes. Financial Distress. Influences on dividend decisions. The value of dividend payments.

7 Capital Investment Decisions and Investment Appraisal

Specific investment decisions (lease or buy, asset replacement and capital rationing); allow for inflation and taxation in investment appraisal.

Statement on Teaching, Learning and Assessment

Teaching and Learning Work Loads

Total 200
Lecture 28
Tutorial/Seminar 14
Supervised Practical Activity 0
Unsupervised Practical Activity 0
Assessment 36
Independent 122

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Guidance notes:

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.

Disclaimer: We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2017/18 , and may be subject to change for future years.

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