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BUU33630 Corporate Finance and Equity Valuation

(5  ECTS credits) - Semester Two

Lecturer(s):

Dr Periklis Boumparis 

Phone: 01 896 8463 E-mail: boumparp@tcd.ie 

Office Hours: By appointment

Module Description/Content

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.

Lecture 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: • Evaluate the corporate governance structure of a company • Understand how financial markets and institutions channel savings to corporate investment. • Understand the traditional theories of the term structure of interest rates. • Evaluate the financial health of a company • Analyze investments using advanced investment appraisal techniques • Measure the relationship between risk and return using advanced pricing models. • Describe the role of debt ratings in capital structure policy • Compare theories of dividend policy and explain implications of each for share value, given a description of a corporate dividend action.

Textbooks and Required Resources

Recommended textbook: 1. 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.

Pre-requisite

BUU22550 Introduction to Finance (SF Year)

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.