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ACCT08022 2022 Finance 2

General Details

Full Title
Finance 2
Transcript Title
Finance 2
Code
ACCT08022
Attendance
N/A %
Subject Area
ACCT - 0411 Accounting & Taxation
Department
BUS - Business
Level
08 - Level 8
Credit
05 - 05 Credits
Duration
Semester
Fee
€
Start Term
2022 - Full Academic Year 2022-23
End Term
9999 - The End of Time
Author(s)
Maria Scanlon, John Gaynor
Programme Membership
SG_BACCO_H08 202200 Bachelor of Arts (Honours) in Accounting SG_BACCO_K08 202200 Bachelor of Business (Honours) in Business with Accounting (Add-on) SG_BACOO_H08 202300 Bachelor of Arts (Honours) in Accounting SG_BACCO_K08 202300 Bachelor of Business (Honours) in Business with Accounting SG_BFINA_K08 202400 Bachelor of Business (Honours) in Business in Finance Stream
Description

The student will appreciate the essential elements of financial management for the developing company, appraise sources of finance, distinguishing between internal and external and short term and long term, appreciate the importance of good working capital management, discuss dividend policy and evaluate the motives for mergers and acquisitions.

Learning Outcomes

On completion of this module the learner will/should be able to;

1.

Compare the various sources of finance available to established and developing businesses, including internal sources, and assess the impact on the capital structure.

2.

Discuss the role and nature of the Irish Stock Exchange and outline methods of issuing share capital. 

3.

Evaluate the elements of working capital, assess the significance of different levels of working capital, explain how working capital might be financed and illustrate how poor working capital management can lead to over-capitalisation, or overtrading.

4.

Discuss distributions to shareholders and the factors influencing dividend policy.

5.

Evaluate the motives for, and financial implications of, mergers and acquisitions and calculate, evaluate and recommend the value of an organisation.

Teaching and Learning Strategies

This module will be delivered through a combination of lectures and tutorials. An essential part of the teaching and learning strategy will be to enable the students to apply their learning where applicable.

Module Assessment Strategies

This subject will be assessed by a combination of an individual exam style continuous assessment and an end of semester exam.

Repeat Assessments

The unsuccessful candidate will be required to repeat the failed element of their assessed work.

Module Dependencies

Prerequisites
ACCT07002 200900 Financial Reporting 1 ACCT07001 200900 Management Accounting Planning, Control and Decision-Making

Indicative Syllabus

L01. Compare the various sources of finance available to businesses, including internal sources, and assess the impact on the capital structure.

  • Sources of external and internal finance available to a business
  • Long-term versus short-term funding
  • Interest rates, inflation, credit ratings and cost of borrowing
  • Financial derivatives
  • Financial gearing
  • Capital structures

L02. Assess financing options available to developing companies and compare possible future outcomes.

  • Problems faced by smaller businesses in raising finance
  • Financing a developing business
  • Return on investment
  • Private equity, business angels, crowd funding and Government supports
  • Attitudes of owners, managers, and lenders towards borrowing

L03. Discuss the role and nature of the Irish Stock Exchange and outline methods of issuing share capital. 

  • Stock exchange listing
  • Primary and secondary market
  • Methods of issuing shares
  • Investment ratios

L04. Evaluate the elements of working capital, assess the significance of different levels of working capital, explain how working capital might be financed and illustrate how poor working capital management can lead to over-capitalisation, or overtrading.

  • Main elements of working capital
  • Purpose of working capital
  • Working capital cycle
  • Policies for control of working capital
  • Managing each element of working capital and influencing factors
  • Liquidity and efficiency ratios
  • Over/under-capitalisation
  • Overtrading

L05. Discuss distributions to shareholders and the factors influencing dividend policy.

  • Describe the nature of dividends
  • Potential impact on shareholder wealth
  • Factors influencing dividend policy
  • Scrip dividends
  • Share buybacks

L06. Evaluate the motives for, and financial implications of, mergers and acquisitions and calculate, evaluate, and recommend the value of an organisation.

  • Reasons for mergers and acquisitions
  • Types of mergers and acquisitions
  • Purchase consideration in mergers and acquisitions
  • Methods of valuing the shares of a business

Coursework & Assessment Breakdown

Coursework & Continuous Assessment
20 %
End of Semester / Year Formal Exam
80 %

Coursework Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Project focusing on the financial performance and the capital structure of a large organisation and comparison wih a competitor Coursework Assessment Open Book Exam 20 % Week 23 1,2,3
             
             

End of Semester / Year Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Final Exam end of module exam Final Exam Closed Book Exam 80 % End of Term 1,2,3,4,5
             
             

Full Time Mode Workload


Type Location Description Hours Frequency Avg Workload
Lecture Flat Classroom Lecture 4 Weekly 4.00
Independent Learning UNKNOWN Personal study 3 Weekly 3.00
Total Full Time Average Weekly Learner Contact Time 4.00 Hours

Required & Recommended Book List

Required Reading
2019-10-28 Financial Management for Decision Makers 9th Edition
ISBN 1292311436 ISBN-13 9781292311432

Now in its ninth edition, Financial Management for Decision Makers provides students with a unique focus on the practical application of financial management and its role in decision making. Covering topics such as financial planning, making capital investment decisions, and financing a small business, it provides an ideal introduction to the world of financial management. New to this edition: A new chapter on international aspects of financial management, which explores the benefits and problems associated with internationalisation and the management of foreign exchange risk Updated explanations throughout including greater coverage of behavioural finance and share valuation methods Increased number of activities, giving more opportunities to engage with the key concepts Updated Real World examples, which provide connections between the theory and practice of financial decision making This text is ideal for undergraduates from a non-accounting or non-finance discipline taking an introductory module in financial management. It is also suitable for postgraduate students enrolled on certificate and diploma courses in financial management, as well as those enrolled on Diploma in Management Studies and MBA programmes. The text can also be used by finance and accounting students as a foundation for further study. Visit www.pearsoned.co.uk/atrill to gain access to a suite of resources which accompany this text: For instructors: Solution's manual, and PowerPoint slides For students: Opportunities to practise and additional support given through a companion website Peter Atrill is a freelance academic who has worked with leading institutions in the UK, Europe and SE Asia. He was formerly the Head of Business and Management and Head of Accounting and Law at Plymouth Business School, Plymouth University.

Required Reading
2020 FINANCE
ISBN 191235036X ISBN-13 9781912350360

Module Resources

Non ISBN Literary Resources

 

 

 

 

 

 

 

 

 

 

 

 
URL Resources

www.irishtimes.com/business

www.rte.ie.com/business

Other Resources

Relevant articles from business press, professional journals etc. 

Various

Various
Additional Information

None