Students

AFIN253 – Financial Management

2014 – S1 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Other Staff
Edward Watts
Contact via edward.watts@mq.edu.au
Unit Convenor
Damian Bridge
Contact via Damian.Bridge@mq.edu.au
Please check iLearn for consultation details
Credit points Credit points
3
Prerequisites Prerequisites
(ACCG100 or ACCG105 or ACCG106) and (ECON111 or BBA103) and (STAT170 or STAT171 or PSY122) and ACST101 and (24cp or GPA of 2.0)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This introductory unit in corporate finance focuses on the financing and investing decisions made by the finance manager of an organisation. While the emphasis is on the theory of the firm, students are also given exposure to current issues affecting corporate finance in Australia. Satisfactory completion of the unit equips students with a grasp of the following principals of financial economics: the relation between risk and expected return; the time value of money; and valuation of securities via discounted cash flows. The unit also provides an introductory coverage of derivative securities and no arbitrage valuation. The unit provides a standalone introduction to finance for students not planning to continue with study in the area. Analytical, quantitative and generic skills are emphasised. The unit aims to develop graduate capabilities centred upon effective communication, higher order analysis and problem-solving skills.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assessment Tasks

Name Weighting Due
Quizzes 15% Various
Class Test 15% Week 7
Assignment 20% Monday 19th May
Final Examination 50% University Examination Period

Quizzes

Due: Various
Weighting: 15%

Students will be assigned a set of multiple choice question each week to be completed online through iLearn.

This includes 10 weekly quizzes (1% each) and the week 4 Diagnostic Quiz (5%).

Please check iLearn for relevant due dates.

No extensions will be granted.  Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved


On successful completion you will be able to:
  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Class Test

Due: Week 7
Weighting: 15%

Class mid semester test will be held in Week 7 (15%).

There will be no supplemenrtary class tests available.

No extensions will be granted.  Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.


On successful completion you will be able to:
  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assignment

Due: Monday 19th May
Weighting: 20%

Submission

Due Monday 19th may at 12 Noon using Turnitin within iLearn.

Extension 

No extensions will be granted. Late tasks will be accepted up to 72 hours after the submission deadline.  There will be a deduction of 20% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 40% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.


On successful completion you will be able to:
  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Final Examination

Due: University Examination Period
Weighting: 50%

A final examination of 2 hours will occur during the univeristy examination period.

You must pass the final assessment to satisfy the requirements of this unit


On successful completion you will be able to:
  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Delivery and Resources

Classes

  • Students should each week attend their allocated lecture of up to two hours duration, and their allocated 50 minute tutorial. Tutorials begin in Week 2 and cover material based on the preceding week's lecture topic.
  • No lectures are given in Week 7, as this lecture time is reserved for the mid -semester test. 
  • Students should attend PAL Sessions where necessary to improve their understanding of the material covered.
  • Attendance at tutorials is very important for successful completion of assessment tasks in this unit. Tutors keep weekly attendance records. These may be taken into consideration in determining the overall unit result. The tutorial attendance record may also be taken into account in considering applications for supplementary end-of-semester final examinations.
  • The timetable for classes can be found on the University web site at:http://www.timetables.mq.edu.au/

Prizes

Information on prizes is available at MQ website: www.businessandeconomics.edu.au/undergraduate_degrees/prizes_scholarships.

Required and Recommended Texts and/or Materials

Required Text (source for weekly tutorial questions)

The textbook will assist you in the weekly quizzes.

  • Printed copy: Fundamentals of Corporate Finance, Australasian 2nd Edition + iStudy 2 Card
  • ISBN : 978-0-7303-0571-2
  • E-book:    Fundamentals of Corporate Finance, Australasian 2nd Edition E-Text + iStudy 2
  • ISBN : 978-0-7303-0542-2

Available at http://www.wileydirect.com.au/buy/fundamentals-corporate-finance-2nd-edition/

 

Technology Used and Required

  • Financial non-programmable calculators can be used in the unit. A financial calculator is not essential as a scientific non-programmable calculator should meet all your needs (calculation of the Internal Rate of Return (IRR) is not required in any of the assessment tasks). Note: Only non-programmable calculators without text retrieval functionality are allowed for use in the unit’s assessments tasks.
  • Excel or similar spreadsheeting tool will be required to complete the assignment.
  • Students should have access to the internet.

Unit Web Page

  • Course material and announcements are available on the learning management system (iLearn).
  • Students should check iLearn regularly before each lecture, tutorial and assessment.

Learning and Teaching Activities

The unit is delivered through weekly lectures and tutorial classes. Tutorial questions will mostly be sourced from the required textbook. The question numbers that will be discussed in tutorials will be posted to iLearn each week. Students should attempt these questions before tutorials. Brief answers to the tutorial questions will be posted on iLearn after each week.

To achieve the best possible results students should:

1) Attend all lectures and tutorial classes, though attendance is not compulsory;

2) As it is unlikely that tutors will be able to cover all questions and problems in each tutorial class, students should attempt and complete all assigned questions and problems before attending tutorial classes;

3) Tutorial questions and problems are assigned from the required text book;

4) Read the assigned chapters of the required text book before attending lectures;

5) Download lecture notes from iLearn, which are available weekly before lectures. Ensure these notes are brought to lectures.

6) Attend PAL sessions where difficulties are experienced.

Changes since the last unit offering

  1. Weeky online quizzes.
  2. Week 4 diagnostic online quiz.
  3. Mid semester weighting decreased from 25% to 15%

Unit Schedule

 

Week No.

Date (Week Beginning)

Topic

Chapters

1

3 March

 

Introduction to Financial Management

 

1 & 2

2

 

10 March

 

Time Value of Money Fundamentals

 

5 & 6

3

17 March

 

Risk & Return

 

7

4

24 March

 

Bond & Share Valuation

 

8 & 9

5

31 March

Capital Budgeting Fundamentals

 

10

6

7 April

Cash Flows & Capital Budgeting

 

11

7

28 April

Mid Semester Exam

 

8

5 May

The Cost of Capital

 

13

9

12 May

Capital Structure

 

16

 

10

 

19 May

 

Capital Management and Payout Policy

 

15 & 17

11

26 May

Options & Corporate Finance

 

20

12

2 June

International Financial Management

 

21

13

9 June

Revision

 

 

 

* Refer to iLearn each week to find the tutorial questions from the recommended textbook.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Academic Honesty

The nature of scholarly endeavour, dependent as it is on the work of others, binds all members of the University community to abide by the principles of academic honesty. Its fundamental principle is that all staff and students act with integrity in the creation, development, application and use of ideas and information. This means that:

  • all academic work claimed as original is the work of the author making the claim
  • all academic collaborations are acknowledged
  • academic work is not falsified in any way
  • when the ideas of others are used, these ideas are acknowledged appropriately.

Further information on the academic honesty can be found in the Macquarie University Academic Honesty Policy at http://www.mq.edu.au/policy/docs/academic_honesty/policy.html

Grades

Macquarie University uses the following grades in coursework units of study:

  • HD - High Distinction
  • D - Distinction
  • CR - Credit
  • P - Pass
  • F - Fail

Grade descriptors and other information concerning grading are contained in the Macquarie University Grading Policy which is available at:

http://www.mq.edu.au/policy/docs/grading/policy.html

Grading Appeals and Final Examination Script Viewing

If, at the conclusion of the unit, you have performed below expectations, and are considering lodging an appeal of grade and/or viewing your final exam script please refer to the following website which provides information about these processes and the cut off dates in the first instance. Please read the instructions provided concerning what constitutes a valid grounds for appeal before appealing your grade.

http://www.businessandeconomics.mq.edu.au/new_and_current_students/undergraduate_current_students/how_do_i/grade_appeals/

Special Consideration Policy

The University is committed to equity and fairness in all aspects of its learning and teaching. In stating this commitment, the University recognises that there may be circumstances where a student is prevented by unavoidable disruption from performing in accordance with their ability. A special consideration policy exists to support students who experience serious and unavoidable disruption such that they do not reach their usual demonstrated performance level. The policy is available at:

http://www.mq.edu.au/policy/docs/special_consideration/policy.html

Supplementary Exams

Further information regarding supplementary exams, including dates, is available here

 

http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

Capable of Professional and Personal Judgement and Initiative

We want our graduates to have emotional intelligence and sound interpersonal skills and to demonstrate discernment and common sense in their professional and personal judgement. They will exercise initiative as needed. They will be capable of risk assessment, and be able to handle ambiguity and complexity, enabling them to be adaptable in diverse and changing environments.

This graduate capability is supported by:

Learning outcomes

  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Examination

Discipline Specific Knowledge and Skills

Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.

This graduate capability is supported by:

Learning outcomes

  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Examination

Critical, Analytical and Integrative Thinking

We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.

This graduate capability is supported by:

Learning outcomes

  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Examination

Problem Solving and Research Capability

Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.

This graduate capability is supported by:

Learning outcomes

  • Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance in Australia.
  • Explain financing and investing decisions made by finance managers.
  • Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows
  • Apply first principles in finance theory and fundamental analytical techniques to simple real-life problems.

Assessment tasks

  • Quizzes
  • Class Test
  • Assignment
  • Final Examination

Research and Practice

This unit uses research from external sources including journal articles and other text books which will be made available on iLearn.