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The current and official versions of the course specifications are available on the web at http://www.usq.edu.au/course/specification/current.
Please consult the web for updates that may occur during the year.

FIN3101 Finance Theory and Applications

Units : 1
Faculty or Section : Faculty of Business and Law
School or Department : School of Accounting, Economics and Finance
Version produced : 30 December 2013

Requisites

Pre-requisite: FIN1101 and STA2300 and FIN2302

Other requisites

Recommended - pre-requisite FIN2105. 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.

Synopsis

This course extends the material presented in FIN1101 and FIN2302. It also introduces further more advanced theory and applications thereof. Firstly, some fundamental issues in finance such as the consumption/investment trade-off and the interaction of that decision with capital markets (under conditions of certainty) are introduced. The arithmetic of mean-variance portfolio theory is then presented. This allows portfolio theory to be developed, which then leads into the presentation of the related capital asset pricing model together with two important applications. The important 'existence' issue of an optimal capital structure is then examined by way of the propositions resulting from Modigliani and Miller's analysis together with some alternative theories of capital structure. Empirical evidence on capital structure is examined and the various theories of capital structure assessed from a practical point of view. Various methods of evaluating the levered firm are then developed with particular emphasis given to the incidence of taxes in a dividend imputation tax system. Finally, the interesting and important area of mergers, acquisitions and governance is explored. Formerly FIN2101.

Course offers

Semester Mode Campus
Semester 2, 2012 External
Semester 2, 2012 On-campus Springfield
Semester 2, 2012 On-campus Toowoomba
Semester 6, 2012 External