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Unit of study_
FINC2011: Corporate Finance I
2024 unit information
This unit provides an introduction to basic concepts in corporate finance and their application to (1) valuation of risky assets including stocks, bonds and entire corporations, (2) pricing of equity securities, and (3) corporate financial policy decisions including dividend, capital structure and risk management policies. Emphasis is placed on the application of the material studied and current practices in each of the topic areas.
Unit details and rules
Managing faculty or University school:
Finance
| Code | FINC2011 |
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| Academic unit | Finance |
| Credit points | 6 |
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Prerequisites:
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{(BUSS1020 or ECMT1010 or ENVX1001 or ENVX1002 or DATA1001) or [(MATH1005 or MATH1015) and MATH1115] or 6 credit points in MATH units including MATH1905} and (BUSS1040 or ECON1001 or ECON1002) |
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Corequisites:
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None |
| Prohibitions:
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None |
| Assumed knowledge:
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BUSS1030 |
At the completion of this unit, you should be able to:
- LO1. identify and explain the basic types of financial management decisions undertaken within a corporation and the role of corporate financial manager
- LO2. describe and discuss the key elements of a modern financial system, including identification and discussion of the main categories of financial institutions, types of financial instruments, and functions of different financial markets
- LO3. explain and apply the basic concepts underpinning the valuation of bonds and common equity securities
- LO4. explain and apply the concepts of expected return, security risk, diversification, portfolio risk, ‘beta’ and the role they play underpinning asset pricing models such as the CAPM
- LO5. calculate company beta, company and divisional cost of capital, and project cost of capital
- LO6. explain and apply the Net Present Value (NPV) rule for corporate capital budgeting in realistic settings, as well as appraise the merits of other alternative investment criteria
- LO7. discuss and explain the concept of market efficiency as well as identify instances of weak, semi-strong and strong forms of financial market efficiency.
Unit availability
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Modes of attendance (MoA)
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