Unit convenor and teaching staff |
Unit convenor and teaching staff
Moderator
Toomas Truuvert
Contact via toomas.truuvert@mq.edu.au
E4A525
By appointment or in class
Unit Convenor
Charles Koh
Contact via charles.koh@mqc.edu.au
Appointment via email.
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
(ACCG849 or ECON649) and (ACCG615 or ACCG860) and (ACCG862 or ACCG923)
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit introduces participants to first principles of contemporary financial theory and practice. Topics include financial mathematics, financial markets and instruments, valuation of securities, measurement and analysis of risk including portfolio theory, investment decisions and evaluation, cost of capital, capital structure policy, and dividend policy. This prepares participants to learn more complex theoretical and analytical techniques, and enables them to apply their knowledge to real life corporate finance situations.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Name | Weighting | Due |
---|---|---|
Quiz | 10% | Week 3,4,5,6,7,8, 9,10,11,12 |
Class Test | 15% | Week 6 |
Report | 15% | Week 10 |
Final Examination | 60% | MQ Examination period |
Due: Week 3,4,5,6,7,8, 9,10,11,12
Weighting: 10%
Assessment task: quizzes are individual tasks, which must be submitted in iLearn by their weekly due dates. You should complete ten (10) consequtive weekly online quizzes, commencing in Week 3. Quizzes have equal relative weight. The time available is 30 minutes per quiz. Questions are only of 'multiple-choice' type. Instructions will be issued in iLearn by Week 2.
Extension: none will be granted.
Supplementary task: none will be offered.
Penalty: if you have not submitted the task by its deadline you will be awarded a zero ("0") score, except for cases in which an application for special consideration is made and approved.
Special consideration: if a special consideration is granted, the relative weight of the task covered by the special consideration will be added to the relative weight of the final examination. Refer to MQ Policy Central for the current MQ Special Consideration Policy. You can find information on how to apply here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration. Note that a deadline for submission of application applies.
Due: Week 6
Weighting: 15%
Assessment task: class test is an individual task, which must be submitted in class on the due date. It is held in class time, as a 'closed book' assessment under invigilated examination conditions. Time available is 60 minutes including 'reading' time. No 'crib sheet' is permitted. You may only attempt the test in your registered class, unless prior permission is received from the Unit Convenor. Questions will be of 'short answer' and 'calculation' types. Instructions will be issued in iLearn by Week 3.
Extension: none will be granted.
Supplementary task: none will be offered.
Penalty: if you have not submitted the task by its deadline you will be awarded a zero ("0") score, except for cases in which an application for special consideration is made and approved.
Special consideration: if a special consideration is granted, the relative weight of the task covered by the special consideration will be added to the relative weight of the final examination. Refer to MQ Policy Central for the current MQ Special Consideration Policy. You can find information on how to apply here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration. Note that a deadline for submission of application applies.
Due: Week 10
Weighting: 15%
Assessment task: a team (or group) research based business style written 'word processed' report including spreadsheet based calculations, which must be submitted in the team leader's registered class on the due date. Instructions will be issued in iLearn by Week 6.
Extension: none will be granted.
Supplementary task: none will be offered.
Penalty: if you have not submitted the task by its deadline you will be awarded a zero ("0") score, except for cases in which an application for special consideration is made and approved.
Special consideration: if a special consideration is granted, the relative weight of the task covered by the special consideration will be added to the relative weight of the final examination. Refer to MQ Policy Central for the current MQ Special Consideration Policy. You can find information on how to apply here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration. Note that a deadline for submission of application applies.
Due: MQ Examination period
Weighting: 60%
Assessment task: final examination is an individual task which must be attempted and submitted at an examination venue on its scheduled date and time. It is held in the MQ Examination Period, and thus is administered centrally as a 'closed book' assessment under invigilated examination conditions. The time available is 120 minutes plus 10 minutes 'reading' time. All topics, textbook chapters and 'homework' shown in the Unit Schedule are examinable. A 'Crib Sheet' (one A4 size white sheet, in your ordinary handwriting, optionally on both sides of the sheet, clearly showing your full name and student identification number) and a non-programmable calculator (financial or scientific, without text capability) will be permitted. An examination 'overview' will be held in class in Week 13. Note that to be eligible for a 'pass' grade in this unit a 'pass' result is required in the final examination.
Penalty: if you have not submitted the task by its deadline you will be awarded a zero ("0") score, except for cases in which an application for special consideration is made and approved.
Special consideration: if a special consideration is granted, a supplementary examination will be offered. You can find information on how to apply, and the timing of the supplementary examination, here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration. Note that a deadline for submission of application applies.
Delivery
Delivery mode: one weekly 3 hour class.
Workload: estimated to about 12 hours per week, on the average, for a unit with 4 credit points. This includes the 3 hour weekly class. Note that your actual workload may vary from the estimated workload.
Class acitivity: most weeks includes a lecture, some practical work, and presentations of 'homework'. Lectures outline main concepts and techniques. Practical work consists of application of concepts and techniques. In-class presentations of 'homework' provides opportunities for you to demonstrate independent application of concepts and techniques to assigned problems.
Weekly preparation: includes pre-reading for lecture, and printing of lecture slides from the publisher on-line facility Connect. The Week 1 lecture slides will be available for 'down-load' from AFIN858 iLearn by Week 1.
The 'Unit Schedule': outlines unit topics, displays a calendar of planned topic coverage, and lists assigned 'homework'. We expect that in addition to in-class activity you should in your own time engage with the topics and 'homework'. It may not always be possible to cover all activity planned for class time, as this is conditional on how class activity unfolds in any one week.
'Homework': may not all be covered in-class. A selection of Concept Questions (noted as 'CQ' in the Unit Schedule) is set weekly for discussion in-class. You will be presenting and discussing CQ's in the week following each topic lecture. Discussants to lead weekly discussion in-class on 'homework' will be chosen 'at random' by the lecturer. Come well prepared. Active class participation is expected from everyone. Suggested answers to CQ's will only be available weekly in-class.
Weekly assigned end-of-chapter-excercises (noted as 'EOCE' in the Unit Schedule) will have suggested answers and solutions issued in iLearn on Friday's, with a one week delay. To illustrate, EOCE's assigned on the Week 1 topic are due in class in Week 2, and thus the Week 1 EOCE's suggested answers and solutions will be issued in iLearn on the Week 2 Friday. We recommend that you seek a thorough understanding of CQ's and assigned EOCE's, as these cover first principles, which are essential in developing an understanding of more complex concepts and techniques. To this end, some time will be set aside weekly in-class for your questions. Obviously, most benefit will be gained if you beforehand have attempted the CQ's and assigned EOCE's, and thus identified problems that you may have encountered. Your questions on EOCE's will be answered and discussed in the week following each topic lecture. Assigned EOCE's will not be collected for marking. It is your responsibility of check work using the EOCE suggested answers and solutions guide that will be issued on iLearn. Make sure to ask questions if anything regarding 'homework' seems unclear.
What has changed (since the last offering of this unit): assessment tasks are of the same type that were used in Semester 2, 2013.
Strategies: to attain a 'satisfactory' performance in this unit consider strategies outlined in a 2007 Master of Accounting Program research project designed to investigate and find ways to enhance student participation in-class. Students surveyed thought that by participating in classroom discussions, answering lecturer’s questions and engaging in meaningful and relevant discussion with one’s peers, and as prompted by the lecturer:
Lecturers surveyed expected students to participate in class as it:
The research concluded that the benefits of in-class participation include:
Resources
Required textbook: will be available on a restricted access basis in the 'closed reserve' section of the MQ Library. However, we stongly recommend that you purchase a copy of the textbook.
Connect: enclosed (or 'wrapped') with the required textbook if you make the purchase through the on-campus Co-Op Bookshop. It is a publisher provided and supported on-line facility supporting your learning as you work through the topics. Its features and instructions on its access will be presented by a publisher representative in-class in Week 1. This information will be available in iLearn by Week 2. Contact the publisher directly for assistance with your technical and content enquiries.
Recommended reference texts: recent editions of
Note that you are not required to purchase these texts.
Technologies used and required: a financial or scientific calculator (non-programmable and without text capability) will be required for 'homework', in-class activity, and assessment tasks. In addition, you will be required to prepare a written 'word processed' report that includes 'spreadsheet' based calculations. Moreover, you will be required to use the 'Internet', MQ Library Catalogue and Databases, and MQC iLearn.
AFIN858 MQC iLearn: contains important information and unit material including
You will at least weekly need to monitor AFIN858 MQC iLearn, especially its 'Announcements' function, to ensure a timely access to important information and unit material.
Week |
Date |
Topic# |
Textbook Chapter |
'Homework' Concept Questions (CQ)* |
'Homework' End of Chapter Exercises (EOCE)** |
1 |
Mar 3 |
Introduction to Corporate Finance |
Ch 1 (not '1.7 Two Period Perfect Certainty Model' pp. 21-8) Ch 2 |
CQ 1.4 CQ 1.5 CQ 2.1 You will be presenting and discussing CQ's in the week following each topic lecture. |
1.3 2.2; 2.6; 2.12; 2.17; 2.23 Your questions on EOCE's will be answered and discussed in the week following each topic lecture. |
2 |
Mar 10 |
Financial Statements and Long-term Financial Planning |
Ch 3 Ch4 |
CQ 3.2 EOCE 3.11 CQ 4.3 EOCE 4.13 |
3.6-10; 3.16; 3.23; 3.25 4.11; 4.17-19; 4.28
|
3 |
Mar 17 |
Valuation of Future Cash Flows Part I
|
Ch 5
|
CQ5.1 CQ 5.6 CQ 5.7 EOCE 5.23 |
5.1-2; 5.5; 5.8; 5.11; 5.20; 5.25; 5.27-28; 5.34; 5.39; 5.44-47; 5.49; 5.51-52 |
4 |
Mar 24 |
Valuation of Future Cash Flows Part II |
Ch 6
|
CQ 6.1 CQ 6.2 EOCE 6.1 & 6.9 |
6.2-3; 6.7; 6.20; 6.25-26; 6.29; 6.31-32 |
5 |
Mar 31 |
Risk and Return Part I |
Ch 10 |
CQ 10.4 a,b CQ 10.4 c,d CQ 10.6 EOCE 10.18 & 10.19 |
10.7-10; 10.21;10.23 |
6^
|
Apr 7 |
Risk and Return Part II |
Ch 11 |
CQ 11.1 CQ 11.6 CQ 11.10 EOCE 11.2 |
11.5-7+; 11.11; 11.13; 11.15; 11.19; 11.26; 11.28-29; 11.31 |
7
|
Apr 28 |
Current Investment Decisions |
Ch 14 (not '14.4 Short-term Financing' pp. 454-7) Ch 15 (not 'Derivative Debt Products' pp.481-2 & not '15.4 Preference Shares' pp. 493-4) Ch 16 (only '16.1 Public Issue'; '16.5 Rights' & '16.7 Issuing Long-term Debt'.) |
CQ 14.2 EOCE 14.1 CQ 15.5 CQ 16.5 |
14.5-7; 14.9; 14.12; 15.1-2 ;15.7; 16.4; 16.8 |
8 |
May 5
|
Capital Budgeting Part I |
Ch 7 |
CQ 7.3, CQ 7.5 CQ 7.7 EOCE 7.8 |
7.4-5; 7.10-1; 7.14-16; 7.23; 7.26 |
9 |
May 12 |
Capital Budgeting Part II |
Ch 8 (not Setting the Option Value pp. 246-7) |
CQ 8.2 CQ 8.4 CQ 8.5 EOCE 8.7 |
8.5-6; 8.8; 8.10; 8.12; 8.14; 8.16; 8.18 |
10
|
May 19 |
Capital Budgeting Part III |
Ch 9 |
CQ 9.2 CQ 9.4 CQ 9.5 EOCE 9.14 |
9.3-4; 9.8; 9.16; 9.18-19; 9.21; 9.23 |
11 |
May 26 |
Cost of Capital and Long-term Financing Part I |
Ch 17 |
CQ 17.1 CQ 17.2 CQ 17.5 EOCE 17.9 |
17.5; 17.10; 17.12; 17.17-21; 17.23 |
12 |
Jun 2 |
Cost of Capital and Long-term Financing Part II |
Ch 19 |
CQ 19.1 CQ 19.2 CQ 19.4 CQ 19.8 |
19.1; 19.4; 19.8;, 19.14; 19.17; 19.20; 19.22 |
13 |
Jun 9 |
Cost of Capital and Long-term Financing Part III & Final Examination 'Overview' |
Ch 18 |
CQ 18.3 CQ 18.5 CQ 18.7 |
18.8-9; 18.12; 18.21; 18.26 |
#All topics are assessable.
*CQ 1.4 refers to the Chapter 1 'Concept Question' 1.4.
**EOCE 1.3 refers to the Chapter 1 'Questions and Problems' exercise 1.3.
+Refer to AFIN858 iLearn Week 6 'folder' for additional sub-questions for EOCE 11.6.
^Week 6 is followed by a two week non-teaching period.
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.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
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
For further information, please refer to the following link:
http://universitycouncil.mq.edu.au/legislation.html
Grade 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 supportingevidence 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.
Attendance at Macquarie City Campus
All Students are required to attend at least 80% of the scheduled course contact hours each Session. Additionally Macquarie City Campus monitors the course progress of international students to ensure that the student complies with the conditions of their visa relating to attendance.
This minimum level of attendance includes all lectures and tutorials. Tutorial attendance will be recorded weekly. If any scheduled class falls on a public holiday this will be rescheduled as advised by your Lecturer. Attendance at any mid-Session or in-class test is compulsory unless otherwise stated.
Unavoidable non-attendance due to illness or circumstances beyond your control must be supported by appropriate documentation to be considered for a supplementary test. Other non-attendance will obtain zero for the test. You should refer to the section above on Special Consideration for more details about this.
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Support at Macquarie City Campus
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
StudyWISE provides:
· Online learning resources and academic skills workshops http://www.mq.edu.au/learning_skills
· Personal assistance with your learning & study related questions
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
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.
IT Help at Macquarie City Campus
If you wish to receive IT help, we would be glad to assist you at http://informatics.mq.edu.au/help/ or call 02 9850-4357.
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 and it outlines what can be done.
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).
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
This unit requires you to prepare a team based research report. Team members will need to read professional finance journals, business sections in newspapers and the financial press synthesising information in developing their own arguments. There is also an opportunity to review other sources of information in preparing the research report. Business Source Premier and Factiva, to mention two, are two very useful databases available at the MQ Library.