MN0256 Introduction to Managing Corporate Finance

Synopsis of Module

The module seeks to develop an understanding of the role of financial management in the corporate environment .Explore issues faced by companies when considering alternative sources of short and long term finance for funding of the business. The module explores issues concerning the determination of the cost of capital for a company and addresses issues relating to the management of short term assets and liabilities.

Aims of Module

The module aims to:

1.	underpin the study of corporate financial management in the accountancy programme area;

2.	develop an understanding of the role of financial management in the corporate environment;

3.	explore issues faced by companies when considering alternative sources of finance and in the management of short term assets and liabilities.

Learning Outcomes

After completing the module students should be able to:

1.	explain the role of financial management within companies

2.	discuss and analyse alternative sources of finance for a company

3.	determine the cost of capital for a company

4.	discuss and analyse the issues faced by companies when managing short term assets and liabilities

Outline Syllabus

The Nature of Corporate Finance

The objectives of companies

The role of financial management in the pursuit of those objectives

The relationship between investment, financing and dividend decisions

Capital Markets

The role of capital markets

The efficient market hypothesis

Sources of Finance

Sources of short term funding

Sources of long tern finance

Cost of Capital

The relative costs of alternative sources of long term capital

The weighted average cost of capital

Working Capital Management

The importance of managing short term assets and liabilities

The working capital cycle

The management of:

- debtors

- creditors

- stock

- cash

Summative assessment

Assessment A: Closed Book Examination (3 hours)

The weighting of this assessment is 100%