Module Information

Module Identifier
AC33010
Module Title
FINANCIAL STRATEGY
Academic Year
2008/2009
Co-ordinator
Ms Megan R Williams
Semester
Semester 1
Mutually Exclusive
This module is not available to Accounting and Finance students

Course Delivery

Delivery Type Delivery length / details
Lecture 15 Hours.
Seminars / Tutorials 4 Hours.
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Assessment Assessed coursework  20%
Semester Exam 2 Hours   80%
Supplementary Exam 2 Hours   100%

Learning Outcomes

On successful completion of this module students should be able to:

* Explain the role and nature of financial strategy and its relationship to shareholder value

* Identify the main elements of investment appraisal

* Evaluate investment opportunities through the use of appropriate techniques

* Identify and evaluate the major sources of finance available to an organisation

* Evaluate the motives for, and financial implications of, mergers and acquisitions, ownership restructuring and leverage buyouts

Aims

The module aims to provide:
  • An overview of financial strategy and its role to shareholdervalue within the business
  • A broader understanding and prctical application of investment and financing strategies
  • A theoretical and practical consideration for mergers and acquisitions and restructuring

Brief description

The module is concerned with the role of financial strategy in the investing, financing and resource allocation decisions within an organisation. It provides a broader understanding of the way in which the appropriate use of financial strategy can add value to the overall corporate strategy used by an organisation. The relevant theories of corporate finance are also addressed.

Content

Main topics:
  • Introduction: Financial strategy and creating shareholder value
  • Investment Strategies I: Time value of money and investment appraisal
  • Investment Strategies II: Evaluation of investments: Steps and technqiues
  • Financing Strategies I: Financing decisions and efficient capital markets
  • Financing Strategies II: Sources of finance and costs of capital
  • Mergers and acquisitions, ownership restructuring and leveraged buyouts

Reading List

Recommended Text
Bender, R and Ward, K (2002) Corporate Financial Strategy 2nd edition Butterworth Heinemann, (1st edition 1993) Primo search Brealey, R A and Myers, S C (2002) Principles of Corporate Finance 7th edition McGraw Hill. (sixth edition 2000) Primo search Ross, A S, Westerfield R & W, Jaffe J (2004) Corporate Finance 7th edition McGraw Hill. (sixth edition 2001) Primo search

Notes

This module is at CQFW Level 6