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FIN1101 Introduction to Corporate Finance

Semester 2, 2022 Springfield On-campus
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:

  1. 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;
  2. synthesise the essential features of the theory of corporate finance, especially as it relates to the relationship between risk and return;
  3. solve problems within realistic corporate finance contexts, especially capital budgeting problems;
  4. apply appropriate numeracy skills in conjunction with problem solving and critical thinking to draw analytical conclusions within each dimension of the corporate finance environment;
  5. 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

Parrino, R, Yong, H.W.A., Dempsey, M., Morkel-Kingsbury, N., Ekanayake, S., James, J., Murray, J. Smales, L. & Wei, X 2020, Fundamentals of Corporate Finance, 4th edn, John Wiley & Sons, Milton, Queensland, Australia.

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

Approach Type Description Group
Assessment
Weighting (%) Course learning outcomes
Assignments Written Quiz No 10 1,4
Assignments Written Case 精东传媒app No 40 1,2,3,4
Examinations Invigilated Invigilated examination No 50 3,4,5
Date printed 10 February 2023