FIN1101 Introduction to Financial Management

FIN	1101	86073	1, 2009	ONC	Introduction to Financial Management	1.00	Toowoomba
Subject	Cat-nbr	Class	Term	Mode	Description	Units	Campus

Academic group:	FOBUS
Academic org:	FOB008
Student contribution band:	3A
ASCED code:	081101

Staffing
Other requisites
Rationale
Synopsis
Objectives
Topics
Texts
Reference materials
Student workload
Assessment details
Graduate qualities and skills
Important assessment information
Assessment notes
Other requirements
Production date
PDF version

STAFFING

Examiner: Peter Phillips
Moderator: Johanna Makin

OTHER REQUISITES

Students are required to have access to a personal computer, e-mail capabilities and Internet access to USQConnect. Current details of computer requirements can be found at <http://www.usq.edu.au/ict/students/standards/default.htm>.

RATIONALE

The objective of financial managers is to increase the market value of the firm's shares. This course is designed to provide students with the concepts and tools that are used by financial managers to achieve this objective. This course is required by certain accounting professional bodies. The course starts from first principles and no previous knowledge of finance is assumed. Whilst students will normally have some background in accounting, one of the main objectives of this course is to examine concepts and tools that are used by financial managers to increase the market value (not book value) of the firm's shares. The focus on market value vis-a-vis book value is a core concept of this course and one that will contribute to a broader understanding of the management and operation of business enterprises.

SYNOPSIS

This course provides an introduction to the basic concepts and tools of financial management. The objective of the financial manager is to maximise the market value of the firm's shares. In this course, the techniques that are used by financial managers to make decisions that are consistent with their efforts to increase the market value of the firm's shares are examined. The concepts and tools that are covered include the valuation of future cash flows, the valuation of shares and bonds, capital budgeting, risk and return, capital structure, dividend policy and short and long term financing. The construction of the course is guided by the requirements of professional accrediting bodies such as the ICAA and CPA. Whilst the main focus of the course is the Australian business environment, the tools are quite general and apply with only minor changes to most business environments.

OBJECTIVES

On successful completion of this course students should be able to:

1.: demonstrate an understanding of the decisions that financial managers must make (including those relating to capital budgeting, capital structure, dividend policy and financing)
2.: discuss core concepts of financial management, including the time value of money, capital budgeting, risk and return, the cost of capital, capital structure and dividend policy
3.: apply the concepts and tools of financial management to the solution of problems that face financial managers (including those relating to capital budgeting, capital structure, dividend policy and financing)
4.: demonstrate numeracy skills required by financial managers through the use of financial mathematics, including present value and future value techniques, to solve financial management problems
5.: demonstrate an awareness of ethical issues involved in the preparation of financial statements and the code of ethics of relevant professional bodies
6.: demonstrate an ability to communicate the results of a financial analysis to an audience of stakeholders in a potential project or decision.

TOPICS

	Description	Weighting (%)
1.	Introduction to financial decision making	3.00
2.	Application of financial mathematics	12.00
3.	Capital budgeting	15.00
4.	Risk and return	15.00
5.	Cost of capital	15.00
6.	Capital structure decisions	15.00
7.	Dividend policies	15.00
8.	Short-term and long-term finance	10.00

TEXT and MATERIALS required to be PURCHASED or accessed

ALL textbooks and materials are available for purchase from USQ BOOKSHOP (unless otherwise stated). Orders may be placed via secure internet, free fax 1800642453, phone 07 46312742 (within Australia), or mail. Overseas students should fax +61 7 46311743, or phone +61 7 46312742. For costs, further details, and internet ordering, use the 'Textbook Search' facility at http://bookshop.usq.edu.au click 'Semester', then enter your 'Course Code' (no spaces).

FIN1101 study package available from the USQ Bookshop.

Ross, SA, Trayler, RM & Bird, RG 2008, Essentials of corporate finance, McGraw Hill, North Ryde, New South Wales.
(1st Australian and New Zealand edition)

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.

It is not necessary to obtain the following titles, but if available, they will provide supplementary material to the set text.

Bishop, SR, Crapp, HR, Faff, RW & Twite, GJ 2003, Corporate finance, 5th edn, Prentice Hall, Frenchs Forest, New South Wales.

Brealey, R, Myers, S, Partington, G & Robinson, D 2000, Principles of corporate finance, McGraw-Hill, Sydney, New South Wales.
(Australian edition)

Frino, A, Kelly, S, Comerton-Forde, C, Cusack, A & Wilson, K 2006, Introduction to corporate finance, 3rd edn, Pearson Education, Frenchs Forest, New South Wales.

Peirson, G, Brown, R, Easton, S, Howard, P & Pinder, S 2005, Business finance, 9th edn, McGraw-Hill, North Ryde, New South Wales.

Petty, JW, Peacock, R, Martin, P, Burrow, M, Keown, A, Scott Jr, DF & Martin, JD 2008, Financial management: principles and applications, 5th edn, Pearson Education, Frenchs Forest, New South Wales.

Ross, S, Thompson, SC, Christensen, MJ, Westerfield, RW & Jordan, BD 2004, Fundamentals of corporate finance, 3rd edn, McGraw-Hill, Sydney, New South Wales.
(Australian edition)

STUDENT WORKLOAD REQUIREMENTS

ACTIVITY	HOURS
Assessments	20.00
Lectures	24.00
Private Study	97.00
Tutorials	24.00

ASSESSMENT DETAILS

Description	Marks out of	Wtg(%)	Due date	Objectives assessed	Graduate skill	Level assessed	Notes
SHORT ANSWER PROBLEM SET	100.00	15.00	03 Apr 2009	1, 2, 3, 4	U2, U3	1, 1	(see note 1)
CASE STUDY AND ETHICS	100.00	35.00	08 May 2009	1, 2, 3, 4, 5, 6	U1, U2, U3, U4	1, 1, 1, 1
2-HOUR EXAMINATION	100.00	50.00	END S1	1, 2, 3, 4	U2, U3	1, 1	(see note 2)

NOTES

1.: Submission date of assignments to be advised.
2.: The examination is scheduled to be held in the end-of-semester examination period. Students will be advised of the official examination date after the timetable has been finalised.

GRADUATE QUALITIES AND SKILLS

Elements of the following Graduate Skills are associated with the successful completion of this course.

Graduate skill assessed	Level assessed
Ethical Research & Enquiry (Skill U1)	Introductory (Level 1)
Problem Solving (Skill U2)	Introductory (Level 1)
Academic & Professional Literacy (Skill U3)	Introductory (Level 1)
Written & Oral Communication (Skill U4)	Introductory (Level 1)

IMPORTANT ASSESSMENT INFORMATION

Attendance requirements:
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:
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:
If students submit assignments after the due date without prior approval of the examiner, then a penalty of 5% of the total marks gained by the student for the assignment may apply for each working day late up to ten working days at which time a mark of zero may be recorded.
Requirements for student to be awarded a passing grade in the course:
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:
This is a restricted examination. Candidates are allowed access to specific materials during the examination. The only materials that candidates may use in the restricted examination for this course are: writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination); calculators which cannot hold textual information (students must indicate on their examination paper the make and model of any calculator(s) they use 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. Students are not permitted to take mobile telephones, pagers or other electronic means of communication into the examination room.
Examination period when Deferred/Supplementary examinations will be held:
Any Deferred or Supplementary examinations for this course will be held during the next examination period.
University Regulations:
Students should read USQ Regulations 5.1 Definitions, 5.6 Assessment, and 5.10 Student Academic Misconduct for further information and to avoid actions which might contravene university regulations. These regulations can be found at http://www.usq.edu.au/corporateservices/calendar/part5.htm. Students should also read the Faculty of Business Policies and Procedures which can be found at http://www.usq.edu.au/business/aboutfob.htm.

ASSESSMENT NOTES

1.	Assignments: (i) The due date for an assignment is the date by which a student must despatch the assignment to the USQ. The onus is on the student to provide proof of the despatch date, if requested by the examiner. (ii) Students must retain a copy of each assignment submitted for assessment. This must be produced within 24 hours if required by the examiner. (iii) In accordance with university policy, the examiner may grant an extension of the due date of an assignment in extenuating circumstances. (iv) The examiner will normally only accept assignments which are electronically submitted through the USQ Study Desk for this course. Students who are unable to meet this submission requirement should contact the examiner of the course to negotiate alternative arrangements. (v) In the event that a due date for an assignment falls on a local public holiday in their area, such as a show holiday, the due date for the assignment will be the next day. Students are to note on the assignment cover the date of the public holiday for the examiner's convenience.
2.	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 USQ library provides advice on how to format information sources using this system. Details can be found at <http://www.usq.edu.au/library/help/ehelp/ref_guides/harvard.htm> and <http://www.usq.edu.au/library/help/ehelp/ref_guides/harvardonline.htm>.
3.	Course weightings: Course weightings of topics should not be interpreted as applying to the number of marks allocated to questions testing those topics in an examination paper. The examination may test material already tested in assignments.
4.	Deferred work: Students who, for medical, family/personal, or employment-related reasons, are unable to complete an assignment or to sit for an examination at the scheduled time may apply to defer an assessment in a course. Such a request must be accompanied by appropriate supporting documentation. One of the following temporary grades may be awarded: IDS (Incomplete - Deferred Examination); IDM (Incomplete Deferred Make-up); IDB (Incomplete - Both Deferred Examination and Deferred Make-up).
5.	Dishonest actions: (i) Any student who is alleged to have performed a dishonest action relating to any assessment in the course will have a course of action taken against him/her as outlined in the academic regulations. (ii) Pieces of assessment should be the work of individual students. Joint pieces of assessment are not permitted unless written approval has been obtained from the examiner. (iii) Dishonest action in relation to assessment includes: copying or attempting to copy the work of others; use of or attempting to use information prohibited from use in that form of assessment; submitting the work of another as your own; consciously committing acts of plagiarism, that is, taking and using another's thoughts or writings as one's own with intent to deceive, which occurs when paragraphs, sentences, a single sentence or significant parts of a sentence which are copied directly, are not enclosed in quotation marks and appropriately footnoted or referenced in the text; direct quotations are not used, but text is paraphrased or summarised, and the source of the material is not acknowledged by reference in the text.

OTHER REQUIREMENTS

Computer, e-mail and Internet access: Students are required to have access to a personal computer, e-mail capabilities and Internet access to USQConnect. Current details of computer requirements can be found at <http://www.usq.edu.au/ict/students/standards/default.htm>.

This version produced 11 Dec 2009.