Programme of Study Catalogue

Objectives:

On successful completion of the module, students will be able to:

1 - use appropriate ratios to assess the performance of a company and to identify possible financial distress;
2 - evaluate and discuss dividend policy theory and assess a company's dividend policy;
3 - apply and evaluate investment appraisal techniques. Use appropriate techniques to identify the optimal investment with and without capital rationing;
4 - calculate an appropriate cost of capital for an organisation to use with discounted cash flow techniques;
5 - apply a number of valuation methods to provide a range of possible values for assets and companies;

Content:

Ratio analysis, creative accounting, reasons for company failure and corporate distress. Corporate dividend policy. Investment appraisal and capital rationing techniques, payback, ARR, NPV, IRR and PI. Cost of capital, DVM, CAPM, debt, taxation and WACC. Optimal capital structures, traditional and modern views. Asset and company valuation techniques. Issuing new equity, offer of sale, rights, tender, and bonus issues. Issuing new debt, bank loans, debentures, bonds and convertible loan stock. UK and global banking system, role of a central bank, investment banks, clearing banks. Other sources of finance, venture capital, grants, debtor factoring, invoice discounting and working capital management.

Learning and Teaching Information:

The module will be delivered via a series of weekly 3-hour whole-group interactive lectures, supported by small group tutorial sessions. Questions/exercises will be set at each lecture meeting for students to complete before the associated small group session. Students will be provided with, and/or directed to, relevant reading and additional questions/exercises to support their progress through the module material..

Lecture
Contact hours: 20
Intended Group size: 30

Tutorial
Contact hours: 20
Intended Group size: 10

Guided independent study
Hours: 160

Further details relating to assessment
Marginal condonement of failure is allowed for this module within the degree programme but no marginal condonement of failure is allowed in relation to ACCA exemptions.

Assessment:

001 Exam; 3 hours; end of semester 1 100%

Fact File

Module Coordinator - Andrew Gilliland
Level - 5
Credit Value - 20
Pre-Requisites - NONE
Semester(s) Offered - 5S1