| Semester 2, 2023 Toowoomba On-campus | |
| Units : | 1 |
| School or Department : | School of Business |
| Grading basis : | Graded |
| Course fee schedule : | /current-students/administration/fees/fee-schedules |
Staffing
Course Coordinator:
Requisites
Pre-requisite: FIN1101 and FIN1103
Overview
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.
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.
Course learning outcomes
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
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 (%) | Course learning outcomes |
|---|---|---|---|
| Problem Solving 1 | No | 20 | 1,3,5 |
| Problem Solving 2 | No | 30 | 2,3,4 |
| Time limited online examinatn | No | 50 | 1,2,3,4 |