FIN1101 Introduction to Corporate Finance
|Semester 3, 2011 On-campus Springfield|
|Faculty or Section :||Faculty of Business and Law|
|School or Department :||School of Accounting, Economics and Finance|
|Version produced :||8 March 2013|
Examiner: Peter Phillips
Moderator: Glenda Adkins
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at <http://www.usq.edu.au/ict/students/standards/default.htm>.
The objective of financial managers is to increase the market value of the firm's shares by managing the firmís corporate finance. This course is designed to provide students with an introduction to the concepts and tools of corporate finance. The course starts from first principles and no previous knowledge of finance is assumed. Whilst many students might be majoring in accounting, one of the main objectives of this course is to examine concepts and tools that are used 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.
This course provides an introduction to the basic concepts of corporate finance. The objective of the financial manager is to maximise the market value of the firm's shares. In this course, the concepts and tools that are needed to make decisions that 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 risk management. 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.
On completion of this course students will be able to:
- demonstrate an understanding of the concepts of corporate finance
- demonstrate an ability to solve problems and think critically in the field of corporate finance
- demonstrate the numeracy skills required to deal with the concepts of corporate finance
- demonstrate an awareness of the ethical issues involved in pursuing the maximum market value for the firmís shares.
|1.||Introduction to corporate finance||5.00|
|2.||Application of financial mathematics||10.00|
|3.||Share and bond valuation||10.00|
|5.||Risk and return||10.00|
|6.||Capital asset pricing model||10.00|
|7.||Cost of capital||10.00|
|8.||The share market and pricing efficiency||10.00|
|10.||Capital structure decisions||10.00|
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (https://bookshop.usq.edu.au/bookweb/subject.cgi?year=2011&sem=03&subject1=FIN1101)
Please contact us for alternative purchase options from USQ Bookshop. (https://bookshop.usq.edu.au/contact/)
Frino, A, Hill, A & Chen, Z 2009, Introduction to corporate finance, 4th edn, Pearson Education, Frenchs Forest, New South Wales.
FIN1101 study package available from the USQ Bookshop.
Student workload requirements
|Description||Marks out of||Wtg (%)||Due Date||Objectives assessed||Graduate skill||Level assessed||Notes|
|ONLINE QUIZ||10||15||14 Dec 2011||1,3||U3||1|
|CASE STUDY||100||35||06 Jan 2012||1,2,3,4||U1,U2,U3||1,1,1|
|2-HOUR EXAMINATION||100||50||End S3||1,2,3||U2,U3||1,1||(see note 1)|
- 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
|Ethical research and enquiry (U1)||Introductory (Level 1)|
|Problem solving (U2)||Introductory (Level 1)|
|Academic, professional and digital literacy (U3)||Introductory (Level 1)|
Important assessment information
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.
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 permitted to have a financial calculator, but a financial calculator is not necessary to complete the course. 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 Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene University policies and practices. These policies can be found at http://policy.usq.edu.au/portal/custom/search/category/usq_document_policy_type/Student.1.html.
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.
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.
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 Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at <http://www.usq.edu.au/library/help/referencing/default.htm>.
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).
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.
Computer, e-mail and Internet access: Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at <http://www.usq.edu.au/ict/students/standards/default.htm>.