Students
AFIN253 – Financial Management
2015 – MQC1 Evening
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Veronica Norman
Contact via veronica.norman@mqc.edu.au
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|---|---|
| Credit points |
Credit points
3
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| 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)
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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 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 principles 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.
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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:
- 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 | 10% | Week 7 |
| Assignment | 25% | Monday 18 May |
| Final Examination | 50% | University Examination Period |
Quizzes
Due: Various
Weighting: 15%
Students will be assigned a set of multiple choice questions each fortnight to be completed online through iLearn.
This includes 5 weekly quizzes (2% 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 Disruption to Studies is made and approved. Where an application for Disruption to Studies is made and approved, the student will receive the average mark for the semester.
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: 10%
Class mid-session test will be held in Week 7 (10%).
This test will cover topics from Weeks 1 to 5. You are permitted one A4 page of paper containing reference material printed on both sides. The material must be handwritten. The page will not be returned at the end of the examination.
There will be no supplementary class tests available. In cases where an application for Disruption to Studies has been made and approved, students will be given a verbal examination.
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 18 May
Weighting: 25%
There will be two components to the assessment. There will be a group component (15%) and individual component (10%).
Submission
Due Monday 18 May at 11.59pm 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 Disruption to Studies 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.
- 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.
You are permitted one A4 page of paper containing reference material printed on both sides. The material must be handwritten. The page will not be returned at the end of the examination.
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 Disruption to Studies is made and approved. The University’s policy on the Disruption to Studies process is available online.
You will need to lodge your request for Disruption to Studies by logging into http://ask.mq.edu.au with your OneID.
If a supplementary examination is granted as a result of the Disruption to Studies process, the examination will be scheduled after the conclusion of the official examination period.
You must pass the final examination 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 begin in Week 2 and cover material based on the preceding week's lecture topic.
- 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.
- 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. The tutorial attendance record may 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/
Required and Recommended Texts and/or Materials
Prescribed textbook (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
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/
Also 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 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
Nil
Unit Schedule
Lecture Week |
Calendar Week |
Chapters |
Lecture Topic |
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1 |
16 March |
1 & 2 |
Introduction to Financial Management |
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2 |
23 March |
5 & 6 |
Fundamentals of Time Value of Money |
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3 |
30 March |
7 |
Risk and Return |
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4 |
6 April |
8 & 9 |
Bond & Share Valuation |
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5 |
13 April |
10 |
Capital Budgeting Fundamentals |
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6 |
20 April |
11 |
Cash Flows & Capital Budgeting |
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7 |
27 April |
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Mid-session Test (15%) |
| 8 | 4 May | 13 | The Cost of Capital |
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9 |
11 May |
16 |
Capital Structure |
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10 |
18 May |
15 & 17 |
Capital Management and Payout Policy |
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11 |
25 May | 20 | Options and Corporate Finance. |
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12 |
1 June |
21 |
International financial management |
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13 |
8 June |
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Revision and overview of end-of-semester final examination |
* Please see list of weekly end-of-chapter homework questions on iLearn.
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.
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.
Disruption to Studies 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 info 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.