FIN8201 Corporate Finance
|Semester 1, 2018 On-campus Springfield|
|Short Description:||Corporate Finance|
|Faculty or Section :||Faculty of Business, Education, Law and Arts|
|School or Department :||School of Commerce|
|Student contribution band :||Band 3|
|ASCED code :||081101 - Banking and Finance|
|Grading basis :||Graded|
Examiner: Lujer Santacruz
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.
Finance and financial decisions are everywhere in the running of businesses. Fundamental to an understanding of basic financial knowledge is the ability to weigh the relevant costs and benefits of any decision using valuation principles and concepts. Within this framework, an understanding of financial markets and the tools available to properly analyse and assess financial information is needed so as to enable analysts and managers to apply those tools to make properly informed decisions amongst loans, investments, and projects.
This course will introduce students to financial markets, the tools and concepts of basic finance, comprehension of basic financial statements, time value of money, valuation of shares and bonds, risk and return considerations, capital budgeting and the cost of capital. It forms the first of three courses in the Finance stream and as such, should be seen as introducing many of the key concepts and foundations upon which the other two courses are built. Many of the finance concepts studied in this course have a global as well as domestic application. In addition, this course will adopt a decision making focus in the context of finance with the tools and techniques taught in this course enabling businesses to maximise the wealth of owners.
On successful completion of this course, students should be able to:
- demonstrate an understanding of the decisions that financial managers must make such as capital budgeting and apply relevant financial tools to make better informed decisions
- demonstrate an understanding of the major financial intermediaries and the instruments that are traded in financial markets and apply those instruments to relevant business situations
- discuss, analyse, evaluate and apply core concepts of financial management, including the time value of money, capital budgeting, risk and return, and the cost of capital
- apply the concepts and tools of financial management to the solution of problems that face financial managers
- demonstrate numeracy skills required by financial managers through the use and application of financial mathematics, including present value and future value techniques, to solve financial management problems
- analyse and communicate financial analysis reports to an audience of stakeholders in a potential project or decision makers
- demonstrate an understanding and application of option derivatives and how they work
- demonstrate an understanding of mergers and acquisitions.
|1.||Overview of corporate finance||5.00|
|2.||Financial statements and analysis||10.00|
|3.||Time value of money and interest rates||15.00|
|4.||Valuation of bonds and shares||15.00|
|5.||Investment decision rules and capital budgeting||15.00|
|6.||Risk and return||10.00|
|7.||Cost of capital||10.00|
|8.||Raising equity and debt capital||10.00|
|9.||Overview of option derivatives||5.00|
|10.||Overview of mergers and acquisitions.||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/?year=2018&sem=01&subject1=FIN8201)
Please contact us for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Berk, J, DeMarzo, P, Harford, J, Ford, G, Mollica, V & Finch, N 2014, Fundamentals of corporate finance, 2nd edn, Pearson Education, Frenchs Forest, New South Wales.
Student workload expectations
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|ONLINE QUIZZES||40||40||27 Feb 2018||(see note 1)|
|EXAMINATION||60||60||End S1||(see note 2)|
- The quizzes are to be administered throughout the semester and are to be completed online through the StudyDesk. The closing dates for the quizzes will be advised at the commencement of the semester. The quizzes will consist of multiple-choice questions and calculation questions. Refer to the StudyDesk for details.
- This will be an open examination. The total working time for the examination is 2 hours. The examination date will be available via UConnect when the official examination timetable has been released.
Important assessment information
Online: There are no attendance requirements for this course. However, it is the students' responsibility 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.
On-campus: 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:
Students should refer to the Assessment Procedure http://policy.usq.edu.au/documents.php?id=14749PL (point 4.2.4)
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.