| Semester 2, 2020 On-campus Toowoomba | |
| Short Description: | Finance Theory & Applications |
| 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:
Requisites
Pre-requisite: FIN1101 and FIN1103
Other requisites
Recommended - pre-requisite FIN2105.
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
The course introduces techniques used in arriving at an optimal allocation of funds among risky investments within a mean variance framework. Students are asked to autonomously review the time value of money mathematics studied in previous finance courses. Modigliani and Miller theorems are introduced to study corporate behaviours and determine the value of a firm.
Synopsis
The course introduces techniques used in arriving at an optimal allocation of funds among risky investments within a mean variance framework. Students are asked to autonomously review the time value of money mathematics studied in previous finance courses. Modigliani and Miller theorems are introduced to study corporate behaviours and determine the value of a firm.
Objectives
On successful completion of this course students should be able to:
- work autonomously when undertaking a review of the time value of money and its application in a variety of situations;
- apply modern optimisation theory using mean variance analysis;
- apply practical mathematical skills in determining the optimal application of funds among risky investments;
- synthesise the Modigliani and Miller theorems in discussing the operation of businesses;
- use analytical skills to examine how financial decision-making affects the economy.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Review of introductory finance. | 5.00 |
| 2. | Investment decisions. | 15.00 |
| 3. | Mean variance analysis. | 10.00 |
| 4. | Optimisation of portfolio. | 10.00 |
| 5. | CAPM and its applications. | 10.00 |
| 6. | Cost of capital. | 10.00 |
| 7. | Capital structure. | 10.00 |
| 8. | Source of capital. | 10.00 |
| 9. | Payout policy. | 10.00 |
| 10. | Capital dispensation. | 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=02&subject1=FIN3101)
Please for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Lumby S & Jones C 2019, Corporate Finance: Theory and Practice, 10th edn, Cengage Learning EMEA, Andover, UK.
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.
Atrill, P & McLaney, EF 2017, Financial management for decision makers, 8th edn, Financial Times Prentice Hall, Harlow, England.
Besley, S, Bringham, EF, Henry, D & Watanabe, T 2016, Corporate finance: the essentials, 5th edn, Cengage Learning, South Melbourne, Victoria.
Brealey, RA, Myers, SC & Allen, F 2019, Principles of corporate finance, 13th edn, McGraw-Hill/Irwin, New York.
Ross, SA, Westerfield, RW & Jaffe, J 2019, Corporate finance, 12th edn, McGraw Hill/Irwin, New York.
Van Horne, JC & Wachowicz, JM Jr 2009, Fundamentals of financial management, 13th edn, Financial Times Prentice Hall, Harlow, England.
Student workload expectations
| Activity | Hours |
|---|---|
| Directed 精东传媒app | 36.00 |
| Independent 精东传媒app | 129.00 |
Assessment details
| Description | Marks out of | Wtg (%) | Due Date | Notes |
|---|---|---|---|---|
| QUIZ 1 | 20 | 20 | 14 Aug 2020 | |
| QUIZ 2 | 30 | 30 | 25 Sep 2020 | |
| ONLINE EXAMINATION | 100 | 50 | End S2 | (see note 1) |
Notes
- This will be an online exam. Students will be provided further instruction regarding the exam by their examiner via 精东传媒appDesk.
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 S2 2020 are: To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks for that item.
Requirements after S2, 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 S2 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 S2, 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 S2 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 S2, 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.
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Examination period when Deferred/Supplementary examinations will be held:
Due to COVID-19 the requirements for S2 2020 are: The details regarding deferred/supplementary examinations will be communicated at a later date.
Requirements after S2, 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 .