BUU33630 Corporate Finance and Equity Valuation

(5 ECTS)

Lecturers:

Catherine Keane

Phone: 012843170   
E-mail: ckeane7@tcd.ie               
Office Hours: Available to meet by appointment

Pre-Requisite: 

BUU22550 - Introduction to Finance

Module Description:

How does a company make a decision to invest in a new production line? Does a firm’s corporate governance structure impact firm value? What, if any, are the ethical aspects of finance? What tools are commonly used to determine the financial health of a company? Does it matter if a company pays dividends, and if so to whom? What sorts of tools are available to tell an investor the return she should expect from a stock? What sort of risks are companies exposed to and how investors price them? How does capital structure policy affect firm value? These commonly asked financial questions form the core issues that we will address in this course. In the course we will be concerned both with the practice and theory of modern corporate finance.

Learning and Teaching Approach:

• 1 lecture per week
• 1 tutorial per week

Our lectures are designed to provide overview and outline of the main areas and concepts of the topic under discussion. In the tutorials homework assignments previously provided will be worked through and ‘ideal’ solutions provided to them. The tutorials will also provide you with an opportunity to query regarding material in the course. While tutorial attendance is not compulsory it is highly recommended.

Learning Outcomes:

On successful completion of this course, students will be able to:

1. Evaluate the corporate governance structure of a company
2. Understand how financial markets and institutions channel savings to corporate investment
3. Understand the traditional theories of the term structure of interest rates
4. Evaluate the financial health of a company
5. Analyze investments using advanced investment appraisal techniques
6. Measure the relationship between risk and return using advanced pricing models.
7. Describe the role of debt ratings in capital structure policy
8. Compare theories of dividend policy and explain implications of each for share value, given a description of a corporate dividend action.
9. Work effectively as an individual and in multi-cultural teams
10. Communicate effectively in oral and written modes in professional and academic settings

Textbooks and Required Resources:

Recommended textbook:

Corporate Finance: A Practical Approach , 2nd Edition Michelle R. Clayman, Martin S. Fridson, George H. Troughton, Matthew Scanlan. ISBN: 978-1-118- 21731-3 

For those students that wish to purchase the print or eBook please send on instructions below. Click on the book website below https://www.wiley.com/engb/Corporate+Finance%3A+A+Practical+Approach+%2C+2nd+Edition-p-9781118105375

• Select eBook or Hardcopy and click Add to Cart
• Follow online instructions for name and address details.
• Before you enter your credit card details you will be asked for a Promotion Code. Enter FCH4 and click Apply to receive your 20% discount and free p&p for print copies as shown below. 

Additional textbook: 1. Financial Management ( FM) by Kaplan Publishing http://kaplan-publishing.kaplan.co.uk/acca-books/f9/Pages/default.aspx  

Please refer to blackboard for further readings.

Assessment:

• An assignment (30% of the grade) Please refer to blackboard for further assessment information.
• An individual examination (70% of the grade) in the examination period.