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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

Bachelor of Accounting*


*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

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