Credit Points: 15

Prerequisite: Nil

Co-requisite:

Workload: 36 contact hours

Campus: Melbourne, Sydney

 

Aims & Objectives

The unit gives students a fundamental understanding of the principles and concepts of corporate finance. A theoretical base is established enabling students to understand the workings of financial markets. The unit examines the techniques that financial managers use in decision-making, particularly in the key areas of the capital budgeting decision (capital investment analysis) and the financing decision (how activities and projects will be funded). Other areas covered are the environment of financial management, the time value of money, risk-return analysis, working capital management, valuations of shares and bonds, capital structure and dividend policy. Large emphasis is placed on developing and finessing students’ problem identification and resolution skills.

Learning Outcomes

At the completion of this unit students will be able to:

  1. Describe and discuss the role of corporate finance;
  2. Demonstrate knowledge of time value of money (TVM) concepts and techniques, capital market theories, and methods of financing businesses, and critically apply the concepts to evaluate economic and investment decisions, including the valuation of bonds and shares and the assessment of capital budgeting decisions;
  3. Demonstrate strong conceptual corporate finance knowledge to analyse and interpret advances in theory for professional practice;
  4. Evaluate and synthesize the key cornerstone elements of finance knowledge and creatively apply that knowledge to real problems in business and in personal financial decision-making; and
  5. Communicate relevant high level finance knowledge with other.

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour

Textbook

Students are advised to check the unit outline for prescribed Textbooks.


Reference Reading

Students are advised to check the unit outline for additional reference materials.