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Please consult the web for updates that may occur during the year.

# FIN3101 Finance Theory and Applications

 Semester 2, 2021 Online Short Description: Finance Theory & Applications Units : 1 Faculty or Section : Faculty of Business, Education, Law and Arts School or Department : School of Business Student contribution band : Band 4 ASCED code : 081101 - Banking and Finance Grading basis : Graded

## Staffing

Examiner: Dom Pensiero

## Requisites

Pre-requisite: FIN1101 and FIN1103

## 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.

## Rationale

The course introduces techniques used in arriving at an optimal allocation of funds among risky investments within a mean variance framework. Students are asked to autonomously review the time value of money mathematics studied in previous finance courses. Modigliani and Miller theorems are introduced to study corporate behaviours and determine the value of a firm.

## Synopsis

The course introduces techniques used in arriving at an optimal allocation of funds among risky investments within a mean variance framework. Students are asked to autonomously review the time value of money mathematics studied in previous finance courses. Modigliani and Miller theorems are introduced to study corporate behaviours and determine the value of a firm.

## Objectives

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

1. work autonomously when undertaking a review of the time value of money and its application in a variety of situations;
2. apply modern optimisation theory using mean variance analysis;
3. apply practical mathematical skills in determining the optimal application of funds among risky investments;
4. synthesise the Modigliani and Miller theorems in discussing the operation of businesses;
5. use analytical skills to examine how financial decision-making affects the economy.

## Topics

Description Weighting(%)
1. Review of introductory finance. 5.00
2. Investment decisions. 15.00
3. Mean variance analysis. 10.00
4. Optimisation of portfolio. 10.00
5. CAPM and its applications. 10.00
6. Cost of capital. 10.00
7. Capital structure. 10.00
8. Source of capital. 10.00
9. Payout policy. 10.00
10. Capital dispensation. 10.00

## Text and Materials

ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (https://omnia.usq.edu.au/textbooks/?year=2021&sem=02&subject1=FIN3101)

Lumby S & Jones C 2019, Corporate Finance: Theory and Practice, 10th edn, Cengage Learning EMEA, Andover, UK.

## 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.
Atrill, P & McLaney, EF 2020, Financial management for decision makers, 9th edn, Financial Times Prentice Hall, Harlow, England.
Besley, S, Bringham, EF, Henry, D & Watanabe, T 2016, Corporate finance: the essentials, 5th edn, Cengage Learning, South Melbourne, Victoria.
Brealey, RA, Myers, SC & Allen, F 2019, Principles of corporate finance, 13th edn, McGraw-Hill/Irwin, New York.
Ross, SA, Westerfield, RW & Jaffe, J 2019, Corporate finance, 12th edn, McGraw Hill/Irwin, New York.
Van Horne, JC & Wachowicz, JM Jr 2009, Fundamentals of financial management, 13th edn, Financial Times Prentice Hall, Harlow, England.

Activity Hours
Directed Study 36.00
Independent Study 129.00

## Assessment Details

Description Marks out of Wtg (%) Due Date Notes
QUIZ 1 20 20 13 Aug 2021
QUIZ 2 30 30 24 Sep 2021
ONLINE EXAMINATION 100 50 End S2 (see note 1)

Notes
1. This will be an online exam. Students will be provided further instruction regarding the exam by their course examiner via StudyDesk. The examination date will be available via UConnect when the Alternate Assessment Schedule has been released.

## Important assessment information

1. Attendance requirements:
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.

2. 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 for that item.

3. 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)

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.

5. 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.

6. Examination information:
An Online Examination is one in which candidates may have access to any printed or written material.

7. Examination period when Deferred/Supplementary examinations will be held:
Deferred and Supplementary examinations will be held in accordance with the Assessment Procedure https://policy.usq.edu.au/documents/14749PL.

8. 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.

## Assessment Notes

1. 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.

Date printed 8 November 2021