Students

AFIN253 – Financial Management

2014 – MQC1 Day

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Moderator
Edward Watts
Contact via edward.watts@mq.edu.au
Unit Convenor
Veronica Norman
Contact via veronica.norman@mq.edu.au
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
Class Participation 10% Various
Class tests 20% Various
Assignment 20% Monday 2 June
Final Examination 50% University Examination Period

Class Participation

Due: Various
Weighting: 10%

Students will be assigned a set question each week which will be collected for assessment purposes.

Over the course of the semester 5 homework submissions will be assessed and given a maximum mark of 2.

Students must be present when their homework is collected.  Late submissions will not be accepted.

Homework must be hand written and not typed.


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 tests

Due: Various
Weighting: 20%

Class tests will be held in Week 4 (5%) and Week 7 (15%)

There will be no supplementary class tests available.

Where special consideration is granted the final examination will be reweighted to take account of these assessments.


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 2 June
Weighting: 20%

Submission

Due Monday 2nd June at 11.59pm using Turnitin within iLearn.

Extension

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.

Final Examination

Due: University Examination Period
Weighting: 50%

There will be one paper, of 2 hours duration plus 10 minutes reading time, to be sat during the end of session examination period. The paper will contain both calculative and theory questions, based on the learning objectives of the unit.

Financial calculators may be used in the final exam.  All materials covered in lectures and tutorials from Weeks 1 to 12 inclusive, and assessment tasks 1, 2 and 3, including materials included in the prescribed textbook are examinable.

Additional information will be provided in the final lecture and also on the unit website in week 13.  These are the only sources of information about the final examination and no correspondence will be entered into about the examination.

The best preparation for the final exam is to complete the weekly tutorial homework questions and lecture examples.  You are also encouraged to discuss these materials with your peers.

You are expected to present yourself for examination at the time and place designated in the Final Examination Timetable. The timetable will be available in Provisional form approximately in week ten of this Session. You will have 1 week to give feedback to the Student Administration Manager. Prior to the examination period, you should ensure that you are familiar with the Examination Regulations. You can find these under Exam Information on the Student Portal Noticeboard.

The examination timetable is produced to provide the maximum number of students with the least number of consecutive examinations. It is not uncommon for students of Macquarie University at both the City and North Ryde Campuses to be required to sit two consecutive examinations.  A maximum of three consecutive exams is also permitted (for example, two on one day, and one the following morning). However no student is required to sit four consecutive exams and if any student discovers their examination timetable contains four consecutive exams, they should immediately contact the Student Administration Managerto have an exam rescheduled. 

Students who have not sat for the exam will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved. The University’s policy on the special consideration process is available online.

You will need to lodge your request for special consideration by logging into http://ask.mq.edu.au with your OneID.

 

If a supplementary examination is granted as a result of the special consideration process, the examination will be scheduled after the conclusion of the official 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 one-hour tutorial. Tutorials cover material based on the preceding week's lecture topic.

    ·          Weekly lectures will be recorded and will be available via iLearn.  The recordings should be viewed as a supplement to your learning, and are not intended to be a substitute for attendance at lectures.

    ·          The week 4 tutorial time is reserved for the diagnostic test. You must attend your scheduled tutorial for this test.  The Week 4 lectures are on as timetabled.

    ·          Week 7 lecture time is reserved for the mid-semester test.  You must attend your scheduled lecture group for this test. The Week 7 tutorial classes are on as timetabled.

    ·          Attendance at tutorials is very important for successful completion of assessment tasks in this unit.  Weekly attendance records 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 MQC Student Portal at:  http://student.mqc.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

Prescribed textbook:

  • Pierson,G, Brown,R, Easton,S, Howard, P & Pinder,S. 2011, Business Finance 11th Edition Australia: McGraw Hill

 

All prescribed textbooks will be made available to students to purchase at the Phillip Street Coop Bookshop. Students will be able to view a full list of textbooks for all units on the Noticeboard link on the Student Portal at http://student.mqc.edu.au/

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 some homework tasks.
  • 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 on iLearn. 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;

2) Attempt and complete all assigned questions and problems before attending tutorial classes;

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

4) Ensure lecture notes are brought to lectures.

5) Attend PAL sessions where difficulties are experienced.

Changes since the last unit offering

  1. Requirement to pass the final examination for an overall Pass grade.

Unit Schedule

Lecture Week

Calendar Week

Text Chapter for Lectures

Lecture Topic

Text Chapter for Tutorials*

1

17 March

3

Introduction to unit and assessment tasks. Time value of money, financial maths and debt valuation.

Overview of unit guide. Review questions of assumed knowledge

2

24 March

4

Fundamentals of equity and debt valuation.

3

3

31 March

5

Project evaluation: NPV, IRR and other investment criteria.

3,4

4

7 April

6

Cash flows. How to calculate from financial statements and which to include and ignore.

Diagnostic Test (5%)

5

14 April

7

Portfolio risk and return.

5

6

21 April

7

Portfolio risk and return, and the CAPM.

6

7

28 April

 

Mid-session Test (15%)

7

8 5 May  11,12,13 Capital structure and payout policy Tutorial questions for this week are posted on iLearn.

9

12 May

14

Cost of Capital.

11, 12

10

19 May

16

Capital market efficiency.

14

11

26 May 18 Derivatives: options.

16

12

2 June

20

International financial management

18

13

9 June

 

Revision and overview of end-of-semester final examination

Tutorial questions are posted on iLearn

* Please see list of weekly end-of-chapter homework questions on iLearn.

Exam period: Tuesday 17 June - Wednesday 25 June 2014 (inclusive).

Session 1 2014 results will be released to students via e-Student on Friday 4 July.

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.city.mq.edu.au/reviews-appeals.html

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

 

The University defines serious and unavoidable disruption to studies as resulting from an event or set of circumstances that:

  • could not have reasonably been anticipated, avoided or guarded against by the student; and
  • was beyond the student's control; and
  • caused substantial disruption to the student's capacity for effective study and/or the completion of required work; and
  • substantially interfered with the otherwise satisfactory fulfilment of unit or course requirements; and
  • was of at least three (3) consecutive days duration within a study period and/or prevented completion of the final examination.

A Special Consideration application is deemed to be valid if all the following criteria have been satisfied:

·         The Special Consideration application is completed by the student and submitted online through www.ask.mq.edu.au within five (5) working days after the due date of the associated assessment task / final examination.

·         The application contains supporting evidence to demonstrate the severity of the circumstance(s) and that substantial disruption has been caused to the student’s capacity for effective study. (The University will not follow up on outstanding evidence, nor contact any person or body on behalf of the student. The application will be considered as submitted.)

·         The original supporting documentation has been sighted by MQC reception staff within five (5) working days after the due date of the associated assessment task.

·         Where the particular circumstances are medical in nature, a Professional Authority Form including the health professional’s Medicare Provider Number is included. (If a Professional Authority Form cannot be obtained, an original medical certificate indicating the severity (serious / not serious) and impact of the circumstances must be included with the application.)

·         Where the particular circumstances are non-medical in nature, appropriate supporting evidence indicating the severity (serious / not serious) and impact of the circumstances is included with the application.

·         The student was performing satisfactorily in the unit up to the date of the unavoidable disruption. (If a student’s work in the unit was previously unsatisfactory, subsequent unavoidable disruption will not overcome the fact that the earlier work was unsatisfactory).

Unacceptable grounds for Special Consideration

 

The University has determined that some circumstances are not acceptable grounds for claiming Special Consideration. These grounds include, but are not limited, to:

  • routine demands of employment
  • routine family problems such as tension with or between parents, spouses, and other people closely involved with the student
  • difficulties adjusting to university life, to the self-discipline needed to study effectively, and the demands of academic work
  • stress or anxiety associated with examinations, required assignments or any aspect of academic work
  • routine need for financial support
  • routine demands of sport, clubs and social or extra-curricular activities.

Acute Problems

The University defines acute problems as those involving fewer than three (3) consecutive days within a study period. In these cases, students should not apply for special consideration via ask.mq.edu.au, but contact their Unit Convenor within 5 working days of the assessment due date so that a local solution may be discussed, except where the disruption affects completion of a final examination. (If a final examination is affected, the student should submit a special consideration application via ask.mq.edu.au.)

Prior Conditions Conditions existing prior to commencing a unit of study are not grounds for Special Consideration, except in the event of unavoidable deterioration of the condition. The student is responsible for managing their workload in light of any known or anticipated problems. Students with a pre-existing disability/ chronic health condition may contact the Disability Service for information on available support.

 

In submitting a request for Special Consideration, the student is acknowledging that they may be required to undertake additional work and agreeing to hold themselves available so that they can complete any extra work as required. The time and date, deadline or format of any required extra assessable work as a result of an application for Special Consideration is not negotiable.

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.

Students who require assistance are encouraged to contact the Student Services Manager at Macquarie City Campus. Please see reception to book an appointment.

Macquarie University provides a range of Academic Student Support Services. Details of these services can be accessed at http://students.mq.edu.au/support/

At any time students (or groups of students) can book our Student Advising rooms on Level 6 by emailing info@city.mq.edu.au with a day and time and nominated contact person. There are additional student study spaces available on Level 1.

Macquarie University Campus Wellbeing also has a presence on the City Campus each week. If you would like to make an appointment, please email info@city.mq.edu.au or visit their website at: http://www.campuslife.mq.edu.au/campuswellbeing

UNIWISE provides:

·          Online learning resources and academic skills workshops http://www.mq.edu.au/learning_skills

 

·          Personal assistance with your learning & study related questions

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.

Students must use their Macquarie University email addresses to communicate with staff as it is University policy that the University issued email account is used for official University communication.

Students are expected to act responsibly when utilising Macquarie City Campus IT facilities. The following regulations apply to the use of computing facilities and online services:

·          Accessing inappropriate web sites or downloading inappropriate material is not permitted.

·          Material that is not related to coursework for approved unit is deemed inappropriate.

·          Downloading copyright material without permission from the copyright owner is illegal, and strictly prohibited. Students detected undertaking such activities will face disciplinary action, which may result in criminal proceedings. 

Non-compliance with these conditions may result in disciplinary action without further notice. 

If you would like to borrow headphones for use in the Macquarie City Campus computer labs (210, 307, 311, 608) at any point, please ask at Level 2 Reception. You will be required to provide your MQC Student ID card.  This will be held as a deposit while using the equipment. 

For assistance in the computer labs, please see a Lab Demonstrator (usually they can be found in Lab 311, otherwise ask at Level 2 Reception).

 

 

 

 

 

 

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

  • Class Participation
  • Class tests
  • 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

  • Class Participation
  • Class tests
  • 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

  • Class Participation
  • Class tests
  • 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

  • Class Participation
  • Class tests
  • 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.