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Unit of study_

FINC5001: Capital Markets and Corporate Finance

Semester 1, 2020 [Normal day] - Camperdown/Darlington, Sydney

The tools of finance allow decision makers to navigate risk and uncertainty. This unit introduces foundational concepts in capital markets and corporate finance, equipping students for further studies in the discipline. The firm and the role of financial institutions are explored before developing important skills in financial mathematics. The unit then moves to the valuation of tradable securities and their pricing in the capital markets. The decisions firms make around capital structure and payout policy are studied. The unit concludes with an exploration of information and market efficiency.

Unit details and rules

Unit code FINC5001
Academic unit Finance
Credit points 6
Assumed knowledge


Available to study abroad and exchange students


Teaching staff

Coordinator Craig Mellare,
Type Description Weight Due Length
Assignment Major assignment
Written report
25% -
Due date: 25 May 2020 at 10:00

Closing date: 08 Jun 2020
10 pages
Outcomes assessed: LO1 LO2 LO4
Final exam Final exam
Written exam
55% Formal exam period 2 hours
Outcomes assessed: LO1 LO6 LO5 LO4 LO3 LO2
In-semester test Mid-semester exam
20% Mid-semester break 60 Minutes
Outcomes assessed: LO1 LO3 LO2

Assessment summary

  • Mid-semester exam: All lecture/readings/tutorial material from topics 1-6 is examinable.
  • Major assignment: In standard semester mode this is a group assignment. The major assignment requires you to demonstrate an understanding and proficiency in the application of finance knowledge, data work and research skills to a specific task relating to a chosen Australian listed company. You will be required to form yourselves into groups of between 2-5 members who are all enrolled in the same stream. Group formation forms will be submitted to the stream lecturer in week 4 of the unit. We will use self and peer assessment to provide formative feedback on group contribution and progress in week 9. In block mode this is an individual assignment.
  • Final exam: The final exam will be a combination of short answer, problem solving and discussion questions. It will cover all material included in the unit of study.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range


High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 


75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.


65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.


50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 


0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website  provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.  

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 03 Introduction Lecture (3 hr)  
Week 04 Financial mathematics 1 Lecture (3 hr) LO1
Week 05 Financial mathematics 2 Lecture (3 hr) LO1
Week 06 Valuation of stocks and bonds Lecture (3 hr) LO2
Week 07 Capital budgeting 1 Lecture (3 hr) LO3
Week 08 Capital budgeting 2 Lecture (3 hr) LO3
Week 09 1. Risk and return; 2. Market efficiency Lecture (3 hr) LO4 LO5
Week 10 The capital asset pricing model (CAPM) Lecture (3 hr) LO4
Week 11 Company cost of capital Lecture (3 hr) LO4
Week 12 Capital structure policy Lecture (3 hr) LO6
Week 13 Dividend policy Lecture (3 hr) LO6
Week 14 (STUVAC) Unit review Seminar (3 hr) LO1 LO2 LO3 LO4 LO5 LO6

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed on the Library eReserve link available on Canvas.

  • Titman, S., T. Martin, A Keown and J. Martin (2018) “Financial Management: Principles and Applications”, 8th Ed., Pearson Australia.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. compute the present value and future value of single cash flow streams, mixed cash flow streams, annuities and perpetuities
  • LO2. calculate the value of a bond and an ordinary share and explain the basic concepts underpinning the valuation of securities
  • LO3. solve capital budgeting problems, taking into account many practical aspects and issues associated with corporate capital budgeting
  • LO4. discuss and explain the relationship between various measures of risk and return and apply the Capital Asset Pricing Model (CAPM) and the Security Market Line (SML)
  • LO5. discuss and explain the concept of market efficiency
  • LO6. explain the impact of the investment, financing and dividend decision on firm value.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.


The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

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