| Semester 1, 2022 Online | |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Business |
| Grading basis : | Graded |
| Course fee schedule : | /current-students/administration/fees/fee-schedules |
Staffing
Examiner:
Overview
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.
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.
Course learning outcomes
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;
- consider 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 mathematics | 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
Student workload expectations
To do well in this subject, students are expected to commit approximately 10 hours per week including class contact hours, independent study, and all assessment tasks. If you are undertaking additional activities, which may include placements and residential schools, the weekly workload hours may vary.
Assessment details
| Description | Group Assessment |
Weighting (%) |
|---|---|---|
| Quiz | No | 20 |
| Case 精东传媒app | No | 30 |
| Invigilated examination | No | 50 |