FN201 Finance
DESCRIPTION
This unit provides an introduction to the fundamentals of financial management. It emphasizes the analytical skills necessary to apply financial tools in business situations. The unit will help students gain a thorough understanding of relevant capital market theories, investment analysis, derivatives and in particular options and option values, capital structure and the role of financial management. The unit develops generic skills such as working in teams, communication and problem solving. These skills combined with technical knowledge will allow students to make better financialdecisions.
RELEVANT COURSES
*Core unit
CREDIT POINTS
10
DELIVERY MODE
On campus
Intensive
Extensive
PREREQUISITE OR CO-REQUISITE
EC101 Economics AND ST101 Applied Quantitative Data Analysis
UNIT LEARNING OUTCOMES
LO1 Discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
LO2 Apply financial mathematics for the valuation of corporations and other financial decision making
LO3 Make investment decisions using sound capital budgeting techniques
LO4 Discuss the pricing of shares, bonds and the role of efficient markets
CONTENT
The financial manager and the firm
Financial mathematics – Time value of money, DCF and risk and return
Analysing financial statements
The financial system and the level of interest rates
Bond valuation and the structure of interest rates
Share valuation
Derivatives, options and option valuation
The fundamentals of capital budgeting
The cost of capital
Capital structure policy
Dividends, stock repurchases, and payout policy
Business formation, growth, and valuation, financial planning and forecasting
ASSESSMENT METHODS
1. Online Quizzes - 20%
2. Group Research Assignment - 30%
3. Exam - 50%
PRESCRIBED READINGS
Parrino, R., Yong, H. H. A., Morkel-Kingsbury, N., James, J. & Mazzola, P. (2020). Fundamentals of corporate finance (4th ed.). Milton QLD: Wiley.
Check with the lecturer each semester before purchasing any textbooks