| Semester 1, 2020 On-campus Springfield | |
| Short Description: | Introduction Corporate Finance |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Commerce |
| Student contribution band : | Band 3 |
| ASCED code : | 081101 - Banking and Finance |
| Grading basis : | Graded |
Staffing
Examiner:
Other requisites
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at .
Rationale
This is an introductory finance course which presents basic financial concepts and tools for students without any prior knowledge of finance. The main focus of this course is to provide conceptual frameworks and introduce specialised tools to help students understand on how to create market value for the firm. The focus on market value contributes a unique finance-based perspective that assists students to develop a broader understanding of the management and operation of business enterprises.
Synopsis
The objective of the financial manager is to create market value for shareholders. In this course, the concepts and tools that are needed to make decisions consistent with an increase in the market value of the firm's shares are examined. The concepts and tools that are covered include free cash flow, interest rates and market efficiency, the time value of money and the valuation of future cash flows, risk and return, bond and share valuation, capital budgeting, the cost of capital, working capital management, capital structure and dividend policy.
Objectives
On successful completion of this course, students should be able to:
- use a knowledge of corporate finance, especially the relationship between cash flows, project valuations, firm value and capital structure to explain how market value is created;
- synthesise the essential features of the theory of corporate finance, especially as it relates to the relationship between risk and return;
- solve problems within realistic corporate finance contexts, especially capital budgeting problems;
- apply appropriate numeracy skills in conjunction with problem solving and critical thinking to draw analytical conclusions within each dimension of the corporate finance environment;
- demonstrate an awareness of the ethical issues involved in pursuing the maximum market value for the firm鈥檚 shares.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Introduction to corporate finance | 5.00 |
| 2. | Interest rates | 5.00 |
| 3. | Cash flows | 10.00 |
| 4. | Time value of money and financial mathermatics | 10.00 |
| 5. | Risk and return | 10.00 |
| 6. | Shares and bonds | 10.00 |
| 7. | Capital budgeting | 10.00 |
| 8. | Cost of capital | 10.00 |
| 9. | Working capital management | 10.00 |
| 10. | Capital structure and leverage | 10.00 |
| 11. | Dividend policy | 10.00 |
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from (unless otherwise stated). (https://omnia.usq.edu.au/textbooks/?year=2020&sem=01&subject1=FIN1101)
Please for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Parrino, R, Yong, H.W.A., Dempsey, M., Morkel-Kingsbury, N., Ekanayake, S., James, J. & Murray, J 2019, Fundamentals of Corporate Finance, 3rd edn, John Wiley & Sons, Milton, Queensland, Australia.
Reference materials
Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.
Student workload expectations
| Activity | Hours |
|---|---|
| Assessments | 20.00 |
| Directed 精东传媒app | 48.00 |
| Private 精东传媒app | 97.00 |
Assessment details
| Description | Marks out of | Wtg (%) | Due Date | Notes |
|---|---|---|---|---|
| ONLINE QUIZ | 100 | 10 | 23 Mar 2020 | |
| CASE STUDY | 100 | 30 | 18 May 2020 | |
| ONLINE EXAM | 100 | 60 | End S1 | (see note 1) |
Notes
- This will be an online exam. Students will be provided further instruction regarding the exam by their course examiner via 精东传媒appDesk. The examination date will be available via UConnect when the Alternate Assessment Schedule has been released.
Important assessment information
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Attendance requirements:
Online: There are no attendance requirements for this course. However, it is the students' responsibility to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
On-campus: It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. -
Requirements for students to complete each assessment item satisfactorily:
Due to COVID-19 the requirements for S1 2020 are: To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks for that item.
Requirements after S1, 2020:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.) -
Penalties for late submission of required work:
Students should refer to the Assessment Procedure (point 4.2.4) -
Requirements for student to be awarded a passing grade in the course:
Due to COVID-19 the requirements for S1 2020 are: To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Requirements after S1, 2020:
To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course. -
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course. -
Examination information:
Due to COVID-19 the requirements for S1 2020 are: An Open Examination is one in which candidates may have access to any printed or written material and a calculator during the examination.
Requirements after S1, 2020:
This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the examination for this course are:- writing materials. These must be non-electronic and free from material which could give the student an unfair advantage in the examination.
- calculator which cannot hold textual information. The student must indicate on the examination paper the make and model of any calculator(s) used during the examination. It is essential that students attempting this course have a quiet battery-operated non-programmable calculator, such as the Casio fx-82TL scientific calculator, or an equivalent. Students are permitted to have a financial calculator, but a financial calculator is not necessary to complete the course.
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Examination period when Deferred/Supplementary examinations will be held:
Due to COVID-19 the requirements for S1 2020 are: The details regarding deferred/supplementary examinations will be communicated at a later date
Requirements after S1, 2020:
Any Deferred or Supplementary examinations for this course will be held during the next examination period. -
精东传媒app Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene 精东传媒app policies and practices. These policies can be found at .
Assessment notes
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Referencing in assignments:
Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at .