Students
ACST101 – Techniques and Elements of Finance
2015 – S1 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Associate Professor of Finance
Kathy Walsh
Contact via kathy.walsh@mq.edu.au
E4a 517
Mondays 16:00 - 17:00
Lecturer
Brian Chu
Contact via brian.chu@mq.edu.au
Please refer to iLearn for details
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| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
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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 provides an introduction to the pricing of financial instruments and the functions of the Australian financial system. Students apply mathematical concepts in valuing a range of financial assets including loans, bonds, shares and investments. They also increase their financial literacy by learning about financial institutions, financial markets, risks and regulation. Spreadsheet skills are introduced throughout the unit. A background of HSC Mathematics or equivalent numerical competency is assumed. Students who have not studied the necessary mathematics are advised to complete Mathematics 123 (MATH123) before enrolling in ACST101. The concepts developed in this unit are required in subsequent actuarial studies and finance units. The unit also provides a practical introduction to finance for students not planning to continue with study in the area.
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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:
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
- Identify the major functions, risks and regulation of financial markets
General Assessment Information
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment tasks (not including the final exam mark) will not be addressed.
Assessment Tasks
| Name | Weighting | Due |
|---|---|---|
| Diagnostic Test | 0% | 11:59pm Monday 9th March 2015 |
| Online weekly quizzes | 20% | 11:59pm Monday Weeks 4 to 13 |
| Class Tests | 30% | Lectures in weeks 5 and 9 |
| Final Exam | 50% | During University exam period |
Diagnostic Test
Due: 11:59pm Monday 9th March 2015
Weighting: 0%
This test is a quick recap of some of the assumed knowledge for this course and material from the first lecture. You will need to achieve 80% in this test before you can attempt the assessable weekly quizzes.
On successful completion you will be able to:
- Identify and explain fundamental concepts of finance
Online weekly quizzes
Due: 11:59pm Monday Weeks 4 to 13
Weighting: 20%
Online quizzes will be completed weekly. For each of the online quiz, students use iLearn to obtain the questions and enter the answers. Students are given two attempts on each quiz and the highest mark is recorded. 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:
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
- Identify the major functions, risks and regulation of financial markets
Class Tests
Due: Lectures in weeks 5 and 9
Weighting: 30%
Class Test 1 will be held in the first hour of the two hour lecture in Week 5. This test will be worth 15%. Students must attend at the lecture time for which they are enrolled. Class Test 1 will be based on material introduced in lectures in weeks 1, 2 and 3.
Class Test 2 will be held in the first hour of the two hour lecture in Week 9. This test will be worth 15%. Students must attend at the lecture time for which they are enrolled. Class Test 2 will be based on material introduced in lectures in weeks 4, 5, 6 and 7
On successful completion you will be able to:
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
Final Exam
Due: During University exam period
Weighting: 50%
The closed book final examination will contain questions from all lectures. It will be a three hour exam with 10 minutes reading time.
To be eligible to pass this unit, a pass is required in the final examination.
On successful completion you will be able to:
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
- Identify the major functions, risks and regulation of financial markets
Delivery and Resources
Learning and Teaching Activities
There are 3 hours of face-to-face teaching per week consisting of 1 x 2 hour lecture and 1 x 1 hour tutorial.
Class times can be found at: http://www.timetables.mq.edu.au
Lectures
The lecture notes will be made available from ACST101 iLearn.
Tutorials
Tutorials which are held weekly commence in the second week of the semester.
Student should attend every tutorial. .
Tutorial enrolment or change of tutorial can be made through eStudent in the first two weeks of the semester. No tutorial changes are allowed after Week 2.
To prepare for each weekly tutorial, print a copy of the Tutorial Exercises from iLearn and attempt the first few questions eg for the Week 2 tutorial you should attempt Q1 to Q4 of the Tutorial Exercises on Week 1.
Check on eStudent for the location of your tutorial. Some tutorial rooms may have been changed since you enrolled. You must attend your allocated tutorial.
Required and Recommended Texts and/or Materials
Required:
Fundamentals of Corporate Finance, Australasian 2nd Edition
Authores: Parrino, Kidwell, Au Yong, Dempsey, Morkel-Kingsbury, Ekanayake, Kofoed, Murray
ISBN : 978-0-7303-0542-2
http://www.wileydirect.com.au/buy/fundamentals-of-corporate-finance-2nd-edition/
Technology Used and Required
Calculators
Calculators will be allowed in the class tests and the final examination but a clear indication of the steps involved in every calculation must be shown.
Non-programmable calculators with no text-retrieval capacity are allowed. Calculators that have a full alphabet on the keyboard are not allowed. Graphics calculators are not allowed.
You will need a calculator which has xy or ^, 1/x and log or ln functions, and a memory.
Unit Schedule
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Week |
Week beg. |
Topic |
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1 |
23-Feb-15 |
Introduction |
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2 |
2-Mar-15 |
Time Value of Money - single amounts |
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3 |
9-Mar-15 |
Time Value of Money - multiple cash flows |
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4 |
16-Mar-15 |
Valuation - debt |
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5 |
23-Mar-15 |
Valuation - equity + class test |
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6 |
30-Mar-15 |
Valuation - Investments |
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6-Apr-15 |
Break |
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13-Apr-15 |
Break |
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7 |
20-Apr-15 |
Valuation – spread sheets |
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8 |
27-Apr-15 |
Risk and Return |
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9 |
4-May-15 |
Market structure + class test |
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10 |
11-May-15 |
Equity and Debt Markets |
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11 |
18-May-15 |
Managing risk |
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12 |
25-May-15 |
Special Topics |
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13 |
1-Jun-15 |
Revision |
Learning and Teaching Activities
Lectures
Tutorials
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/
Results
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
Supplementary Exams
Further information regarding supplementary exams, including dates, is available here http://www.businessandeconomics.mq.edu.au/new_and_current_students/undergraduate_current_students/how_do_i/disruption_to_studies/
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
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
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
- Identify the major functions, risks and regulation of financial markets
Assessment tasks
- Diagnostic Test
- Online weekly quizzes
- Class Tests
- Final Exam
Learning and teaching activities
- The lectures will cover the weekly topics and draw on the textbook as needed. It is essential that you attend lectures and participate in weekly discussions.
- Tutorials will revise concepts presented in lectures. Students are given exercises which should be attempted before the tutorial.
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
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
Assessment tasks
- Online weekly quizzes
- Class Tests
- Final Exam
Learning and teaching activities
- The lectures will cover the weekly topics and draw on the textbook as needed. It is essential that you attend lectures and participate in weekly discussions.
- Tutorials will revise concepts presented in lectures. Students are given exercises which should be attempted before the tutorial.
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
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Evaluate financial information using a spreadsheet
- Explain the relationship between risk and return
Assessment tasks
- Online weekly quizzes
- Class Tests
- Final Exam
Learning and teaching activities
- The lectures will cover the weekly topics and draw on the textbook as needed. It is essential that you attend lectures and participate in weekly discussions.
- Tutorials will revise concepts presented in lectures. Students are given exercises which should be attempted before the tutorial.
Effective Communication
We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.
This graduate capability is supported by:
Learning outcomes
- Identify and explain fundamental concepts of finance
- Apply fundamental concepts of finance to current affairs and real life situations
- Calculate time value of money problems
- Identify the major functions, risks and regulation of financial markets
Assessment tasks
- Online weekly quizzes
- Class Tests
- Final Exam
Learning and teaching activities
- The lectures will cover the weekly topics and draw on the textbook as needed. It is essential that you attend lectures and participate in weekly discussions.
- Tutorials will revise concepts presented in lectures. Students are given exercises which should be attempted before the tutorial.
Changes from Previous Offering
This course has been redesigned and as such it has changed significantly from the previous offering. Some of the topics covered have changed and the material now covers more asset classes. The elements and techniques sections have been integrated and spreadsheets have been introduced.