FIN5000 Financial Management
|Semester 1, 2013 On-campus Toowoomba|
|Faculty or Section :||Faculty of Business and Law|
|School or Department :||School of Accounting, Economics and Finance|
|Version produced :||21 July 2014|
Examiner: Glenda Adkins
Moderator: Dom Pensiero
Co-requisite: ACC5202 or ECO5000
Students are required to have access to a personal computer, spread-sheet software programs, word processing software programs, Powerpoint software programs, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.
Financial decisions are undertaken daily by people in all organisations. Fundamental to this decision making process are the basic tools that a financial decision maker uses to make decisions within a firm. These tools include:
- how to finance an investment
- whether to undertake an investment
- how to read and interpret financial statements
- how to choose a dividend policy
- how to value a company’s bonds and shares
- investment decision rules and fundamental of capital budgeting.
This course will introduce students to the concepts and tools of financial management. The focus of the course is decision making in a financial context. It therefore examines the techniques that are used in businesses to make decisions that are consistent with the efforts to increase the wealth of the owners of the business in a corporate environment. The topics covered include but not limited to the valuation of future cash flows, the valuation of stocks and bonds, capital budgeting, risk and return and long term financing. The course consists of core modules and program specific modules for each postgraduate program if applicable.
On successful completion of this course, students should be able to:
- demonstrate an understanding of the decisions that financial managers must make (including those relating to capital budgeting, capital structure, dividend policy and financing)
- 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
- 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)
- 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
- demonstrate an awareness of ethical issues involved in the preparation of financial statements and the code of ethics of relevant professional bodies
- demonstrate an ability to communicate a financial analysis to an audience of stakeholders in a potential project or decision makers.
|1.||Introduction to financial management and financial decision making||5.00|
|2.||Financial statements and cash flows||10.00|
|3.||Financial mathematics and the valuation of cash flows||15.00|
|4.||Valuation of bonds and shares||10.00|
|5.||Capital budgeting and investment decisions||15.00|
|6.||Risk and return||15.00|
|7.||Cost of capital||15.00|
|8.||Capital structure and dividend policy||10.00|
|9.||Working capital management||5.00|
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=2013&sem=01&subject1=FIN5000)
Please contact us for alternative purchase options from USQ Bookshop. (https://bookshop.usq.edu.au/contact/)
FIN5000 Financial Management custom publication – compiled for the University of Southern Queensland by Dom Pensiero and Glenda Adkins, Pearson Australia. This custom publication comprises readings from: Berk, J, DeMarzo, P, Harford, J, Ford, G & Finch, N 2011, Fundamentals of corporate finance, Pearson Education, Frenchs Forest, New South Wales. (Chapters 1 – 16, 18 only).
Students should note that the custom publication is ONLY available through the USQ Bookshop. If you choose not to purchase the custom publication, you may subsequently find you cannot purchase the individual text from your local supplier/bookstore or you may find that you will have to purchase the FULL version of the text rather than the substantially cheaper and smaller customised version. Further, as the text can be released in differing editions in different countries, to avoid confusion, the study material is specifically written to the edition of the text shown above and which is used in the custom publication. In sum, the custom publication is strongly recommended for all students.
Berk, J, DeMarzo, P, Harford, J, Ford, G & Finch, N 2011, Fundamentals of corporate finance, Pearson Education, Frenchs Forest, New South Wales.
(1st adaptation edition.)
Bishop, S, Faff, R, Oliver, B & Twite, G 2003, Corporate finance, 5th edn, Prentice Hall, Frenchs Forest, New South Wales.
Brealey, R, Myers, S & Allen, F 2010, Principles of corporate finance, 10th edn, McGraw-Hill/Irwin, New York.
Elton, E, Gruber, M, Brown, S & Goetzmann, W 2010, Modern portfolio theory and investment analysis, 8th edn, John Wiley & Sons, New York.
Frino, A, Chen, Z & Hill, A 2009, Introduction to corporate finance, 4th edn, Pearson Education, Frenchs Forest, New South Wales.
Student workload requirements
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|CMA TEST 1||10||10||20 Mar 2013||(see note 1)|
|CMA TEST 2||30||30||09 May 2013||(see note 2)|
|2-HOUR EXAMINATION||60||60||End S1||(see note 3)|
- CMA test 1 will comprise multiple-choice questions on modules 1 and 2. Students can access CMA test 1 from the first teaching week of semester.
- CMA test 2 will comprise multiple-choice questions on modules 3 - 6. Students can access CMA test 2 approximately three (3) weeks from the due date, that is from 15 April 2013.
- The examination is scheduled to be held in the end-of-semester examination period and is an open examination. For more information on an open examination, students should read the information provided in the examination section below. Students will be advised of the official examination date after the timetable has been finalised.
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 will be an open examination. Candidates may have access to any printed or written material and a calculator during the examination.
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.
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) The examiner may grant an extension of the due date of an assignment in extenuating circumstances. All applications of extension must be accompanied by supporting documents to substantiate the claims of students. In all circumstances, no assignments will be accepted two calendar weeks after the due date. (iii) If requested, students will be required to provide a copy of an assignment submitted for assessment purposes. This should be despatched to the USQ within 24 hours of receipt of a request being made. (iv) The examiner will not accept submission of assignments by facsimile. (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/referencing.
Supplementary work: Supplementary examinations may be awarded to students who have achieved at least 45% - 49% in aggregate but who are otherwise not eligible for the grade of LP (Low Pass), and who have demonstrated sufficient understanding in the examination to warrant consideration for a supplementary examination (normally a minimum of 45% achievement in the examination is required).
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).
Makeup work: (i) Students who have undertaken all of the required assessments in a course but who have failed to meet some of the specified objectives of a course within the normally prescribed time may be awarded the temporary grade: IM (Incomplete - Makeup). An IM grade will only be awarded when, in the opinion of the examiner, a student will be able to achieve the remaining objectives of the course after a period of non-directed personal study, for example, a makeup assignment may be awarded to students who have passed the final examination (that is, achieved at least 50% in the final examination) but who have not achieved a composite score of 50% or more in the course.
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/current-students/support/computing/hardware.