Availabilities:

Location Domestic International
Coffs Harbour Session 1 Session 1
Gold Coast Session 1 Session 1
Hong Kong Session 1 Session 1,  1
Lismore Session 1 Session 1
Online Session 1,  3 Session 1,  3
Papua New Guinea - IBSU Port Moresby Session 1 Session 1,  3

Unit Summary

Unit type

UG Coursework Unit

Credit points

12

AQF level

7

Level of learning

Intermediate

Former School/College

Former School of Business and Tourism

Pre-requisites

(ACC10707 - Accounting for Business AND MAT10251 - Statistical Analysis AND FIN10708 - Finance and Investment for Business AND 12 credit points in any SCU units) OR (ACC10249 Financial Information for Decision Making AND MAT10248 Quantitative Analysis for Business AND 24 credit points in any SCU units)

Anti-requisites

ACC00142 Accounting and Financial Management II

Unit aim

Consolidates and extends students' knowledge and skills in analysing, evaluating and making business decisions covering advanced capital investment appraisal, financing analysis, and capital structure and dividend policies. Exposes students to some specialised and sophisticated financial management techniques and approaches that form part of the tool-kit of today's business finance professional.

Unit content

Topic 1 Value maximisation and governance
Topic 2 Capital investment decisions I
Topic 3 Capital investment decisions II
Topic 4 Bond valuation
Topic 5 Share valuation
Topic 6 Cost of capital
Topic 7 Financing
Topic 8 Capital structure policy
Topic 9 Distribution policy
Topic 10 Financial modelling

Learning outcomes

Unit Learning Outcomes express learning achievement in terms of what a student should know, understand and be able to do on completion of a unit. These outcomes are aligned with the graduate attributes. The unit learning outcomes and graduate attributes are also the basis of evaluating prior learning.

GA1: , GA2: , GA3: , GA4: , GA5: , GA6: , GA7:
On completion of this unit, students should be able to: GA1 GA2 GA3 GA4 GA5 GA6 GA7
1 make investment, financing and dividend decisions consistent with sound corporate governance and the objective of value maximisation
2 apply discounted cash flow techniques to value capital investments and basic financial assets
3 analyse and appraise capital investments
4 estimate the cost of capital and critique issues surrounding this process
5 compare and evaluate alternative financing sources, capital structures and dividend policies
6 develop and assess a long-term financial model of the firm.

On completion of this unit, students should be able to:

  1. make investment, financing and dividend decisions consistent with sound corporate governance and the objective of value maximisation
    • GA1:
    • GA4:
  2. apply discounted cash flow techniques to value capital investments and basic financial assets
    • GA1:
    • GA4:
  3. analyse and appraise capital investments
    • GA1:
    • GA4:
  4. estimate the cost of capital and critique issues surrounding this process
    • GA1:
    • GA4:
    • GA5:
  5. compare and evaluate alternative financing sources, capital structures and dividend policies
    • GA1:
    • GA4:
    • GA5:
  6. develop and assess a long-term financial model of the firm.
    • GA1:
    • GA4:

Prescribed texts

  • Berk, J, DeMarzo, P, Harford, J, Ford, G & Finch, N , 2011, Fundamentals of Corporate Finance, 1st edn, Pearson, Frenchs Forest, NSW. ISBN: 9314994244052.

  • Berk, J, DeMarzo, P, Harford, J, Ford, G, Mollica, V & Finch, N , 2014, Fundamentals of Corporate Finance, 2nd edn, Pearson, Frenchs Forest, NSW. ISBN: 9781486042197.
Prescribed texts may change in future teaching periods.