Module Code - Title:
FI4003
-
FINANCE
Year Last Offered:
2025/6
Hours Per Week:
Grading Type:
N
Prerequisite Modules:
Rationale and Purpose of the Module:
The course provides an introduction to corporate finance and finance theory. The aim of the course is to develop students understanding of fundamental topics in corporate finance and financial theory. The course provides students with the skills needed to engage in basic analysis of projects and financial assets.
Syllabus:
The primary focus of this introductory course is on discounted cash flow techniques, and their application to corporate finance. This course introduces the concept of the time value of money, and the key methods of project appraisal including the net present value method, the payback period, the book rate of return, internal rate of return, profitability indices etc. the merits and demerits of each are explained. Qualitative aspects of capital budgeting and investments are also covered. The concept of market efficiency and of the link between risk and return are illustrated by reference to historical returns. Basic issues around share valuation are also discussed, and the students are introduced to derivative instruments, and how they may be used both defensively and aggressively.
Learning Outcomes:
Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)
On successful completion of this module students will be able to:
- identify the role of financial managers in modern business organisations.
- recognise and articulate the tradeoff between risk and return.
- calculate present and future values of streams of cash flows.
- calculate the payback period, accounting rate of return, net present value and internal rate of return of a project.
- calculate, at a basic level, the value of equities, bonds and derivatives.
- interpret financial data to make informed decisions.
Affective (Attitudes and Values)
N/A
Psychomotor (Physical Skills)
N/A
How the Module will be Taught and what will be the Learning Experiences of the Students:
The module involves a mix of lecture and tutorial delivery. The focus is on making students knowledgable in relation to the basic skills required to engage with data for financial decision making. To this end there will be a heavy emphasis on worked practical examples in lectures and tutorials.
Research Findings Incorporated in to the Syllabus (If Relevant):
Prime Texts:
Hillier, Clacher, Ross, Westerfield and Jordan (2014)
Fundamentals of Corporate Finance (European Edition)
, McGraw Hill
Other Relevant Texts:
Hillier, Ross, Westerfield, Jaffe and Jordan (2010)
Corporate Finance (European Edition)
, McGraw Hill
Megginson, Smart and Lucey (2008)
Introduction to Corporate Finance
, Cengage
Programme(s) in which this Module is Offered:
BBBUSTUFA - BUSINESS STUDIES
BBBSFRUFA - FRENCH
BBBSGEUFA - GERMAN
BBBSJAUFA - JAPANESE
BSENERUFA - Energy
Semester(s) Module is Offered:
Autumn
Module Leader:
fergal.g.obrien@ul.ie