Availabilities:

Location Domestic International
Coffs Harbour Session 1 Session 1
Gold Coast Session 1 Session 1
Lismore Session 1 Session 1
Melbourne N/A Session 1
Online Session 1,  3 Session 1
Papua New Guinea - IBSU Enga N/A Session 1,  3
Papua New Guinea - IBSU Port Moresby N/A Session 1,  3
Sydney N/A Session 1

Unit Summary

Unit type

UG Coursework Unit

Credit points

12

AQF level

7

Level of learning

Advanced

Former School/College

Former School of Business and Tourism

Pre-requisites

ECO10250 - Economics for Decision Making AND EITHER ACC00151 - Financial Accounting OR ACC10707 - Accounting for Business OR FIN10708 - Finance and Investment for Business

Co-requisites

MAT10251 - Statistical Analysis

Unit aim

Covers concepts, principles and tools of business finance and business financial management. It develops students’ knowledge and skills in analysing, evaluating and making business decisions related to capital investment appraisal, financing alternatives, capital structure and dividend policies. The unit also provides an overview of the business’s financial environment, risk and return trade-offs and time value of money applications.

Unit content

Topic 1: Introduction to Business Finance

Topic 2: Time Value of Money: Single Cash Flow

Topic 3: Time Value of Money: Multiple Cash Flows

Topic 4: Risk and Return

Topic 5: Bond Valuation and Interest Rates

Topic 6: Share Valuation

Topic 7: Capital Investment Decisions I

Topic 8: Capital Investment Decisions II

Topic 9: Financing

Topic 10: Capital Structure Policy

Topic 11: Distribution Policy

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 Explain how businesses make financial decisions and the nature of the broader financial environment in which they operate
2 Calculate and interpret measures of risk and return, explain the risk-return trade-off and discuss the concept of diversification
3 Apply the techniques of financial mathematics to aid in financial management decision-making
4 Analyse and appraise capital investments
5 Compare and evaluate alternative financing sources, capital structures and dividend policies

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

  1. Explain how businesses make financial decisions and the nature of the broader financial environment in which they operate
    • GA1:
    • GA4:
  2. Calculate and interpret measures of risk and return, explain the risk-return trade-off and discuss the concept of diversification
    • GA1:
    • GA4:
    • GA6:
  3. Apply the techniques of financial mathematics to aid in financial management decision-making
    • GA1:
    • GA4:
  4. Analyse and appraise capital investments
    • GA1:
    • GA4:
    • GA6:
  5. Compare and evaluate alternative financing sources, capital structures and dividend policies
    • GA1:
    • GA4:

Prescribed texts

  • 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.

  • Purchase eBook from the Wiley Direct online store (which can be accessed by copying and pasting the following link into your browser: http://www.wileydirect.com.au/buy/business-finance-1st-edition/): Parrino,R, Kidwell,DS, Au Yong,HH, Dempsey,M, Morkel-Kingsbury,N, Ekanayake,S, James, J and Murray,J, 2016, Business Finance, 1st edition, John Wiley & Sons, Milton, QLD.
Prescribed texts may change in future teaching periods.