Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor & Lecturer
Charles Koh
Please check iLearn for contact and consultation details
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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:
Grading Policy: assessment in this unit is informed by the MQ Grading Policy.
Standardised Numerical Grade (SNG): a Standardised Numerical Grade (SNG) gives you an indication of how you have performed within the band for your descriptive grade. The SNG is not a mark, and you may not be able to work it out based on your raw examination and other assessment marks. Nor are you able to determine you are “one mark away” from a different grade.
Rubric: the Case Study will be assessed against criterion and performance standards set out in a marking Rubric, which will be provided to project teams as a resource appended to the case study.
'Double Pass' Rule: to be eligible to pass this unit, a pass is required in the final examination.
Disruption to Study: if your disruption to study is deemed 'Serious and Unavoidable', and thus meets the criteria for Special Consideration set out in the Disruption to Studies Policy, you will receive an additional opportunity to demonstrate that you have met the learning outcomes for this assessment task. Otherwise, there will be no provision of an additional assessment task. For information, including results of disruption e.g. 'preparation affected' or 'examination performance affected', please refer to the Disruption to Studies Policy Outcomes and Supporting Evidence.
Viewing Within Session Assessment Task Marks: it is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working 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 marks (not including the final exam mark) will not be addressed.
Name | Weighting | Due |
---|---|---|
Quiz | 15% | Refer to iLearn for details. |
Class Test | 15% | Week 7 |
Case Study | 20% | Week 12-Mon 25 May 12 noon |
Final Examination | 50% | Examination Period |
Due: Refer to iLearn for details.
Weighting: 15%
Quiz is an individual 'open-book' assessment task, attempted at a venue of your choice, and submitted 'on-line' in AFIN858-iLearn.
The 10 weekly quizzes will cover topics listed in the Unit Schedule, through a mix of 'theory' and 'problem solving' questions, eliciting responses from sets of 5 pre-determined alternatives i.e. 'multiple-choices', requiring selection of 'ONE best' alternative as your answer. No 'negative' marking applies. Up to 8 (inclusive) of your randomly selected quiz scores will be counted toward the overall result. Total time available will be 60 minutes per quiz.
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of zero for the task, except for cases in which the Disruption to Studies Policy is followed.
In addition, make sure to read the Quiz Information, which will be issued in AFIN858-iLearn providing detailed information about this assessment task.
Due: Week 7
Weighting: 15%
Class Test is an individual 'closed-book' assessment task that will be held in Week 7 during in-class time at your scheduled venue under invigilated and time-limited conditions, and submitted at this venue. Total time available will be 60 minutes.
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of zero for the task, except for cases in which the Disruption to Studies Policy is followed.
'Reference' ('Crib' or ‘Formula') Sheet: you are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned at the end of the Class Test.
In addition, make sure to read the Class Test Information, which will be issued in AFIN858-iLearn providing detailed information about this assessment task.
Due: Week 12-Mon 25 May 12 noon
Weighting: 20%
Case Study is a group assessment task, attempted in a project format during out-of-class time, and submitted on-line in AFIN858-iLearn Turnitin.
The case study will require analysis of corporate finance issues in work-related contexts and collaborative research-based evaluation and formulation of proposals. Submitted proposals will be assessed on group-only basis against criterion and performance standards set out in a marking Rubric, which will be provided to the groups as a resource. A group mark, feed-back and feed-forward will be provided in AFIN858-iLearn GradeMark (assessment software) format. Individual group member marks will be available in AFIN858-iLearn GradeBook.
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 the Disruption to Studies Policy is followed.
In addition, make sure to read the Case Study Information, which will be issued in AFIN858-iLearn providing detailed information (including configuration of project groups) about this assessment task.
Due: Examination Period
Weighting: 50%
Final Examination is an individual 'closed book' assessment task, attempted at an examination venue as timetabled by MQ Examinations, under invigilated and time-limited conditions, and submitted at the examination venue. Total time available will be 180 minutes plus 10 minutes of 'reading' time.
'Reference' ('Crib' or ‘Formula') Sheet: you are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned at the end of the final examination.
Please note that a Double Pass rule applies: to be eligible to pass this unit, a pass is required in the final examination.
In addition, make sure to read the current Final Examination Policy and Final Examination Procedure.
Delivery
Mode: 1 weekly class (3 hours). Attendance is not compulsory. However, in our experience, regular weekly in-class participation can contribute to your overall performance. In-class participation includes discussion on weekly lecture topics, and short presentations of assigned homework. Lecturers will note your in-class participation, so attend only the class in which you are enrolled. Please note that students enrolled in any one class have priority access to venue seating on a first-come-first serve basis.
Workload: estimated to about 150 hours in total (or 12 hours per week, on the average) for a post-graduate unit with 4 credit points. The workload includes weekly pre-lecture reading, in-class participation, weekly homework, preparation for assessment tasks, attempts at 'take home' assessment tasks including case study project work during the 2 week mid-semester non-teaching period. Please note that your personal workload may vary from the estimated workload.
Weekly Preparation: in-class participation is expected from everyone. Therefore, come well prepared to class.
Pre-lecture reading: we expect that in preparation for in-class participation you will attempt pre-lecture reading of chapters in the textbook, lecture slides, plus any additional occasional material including practitioner journal and financial press articles.
Homework: we expect that in preparation for in-class participation you will attempt assigned CQ's and Q&P's homework.
We strongly recommend that you seek to develop a thorough understanding of the Week 1 and Week 2 lecture topics and homework, as a good grasp of these first principles are essential in developing a working knowledge and understanding of the subsequently more complex concepts and techniques.
Homework: will be discussed and presented during in-class time in the week following the topic lecture (e.g. the Week 5 topic "Capital Budgeting - Part I" will be discussed and presented in Week 6). Please note that homework will not be collected for marking. It is your responsibility to check homework using the Q&P's suggested answers and solutions guides that will be issued weekly on Friday's in AFIN858-iLearn but not until Q&P's have been discussed during in-class time. Contingent on how in-class activity unfolds, some weeks the full set of Q&P's may be not be discussed during in-class time. It is your responsibility to make sure to work through the full set of Q&P's during out-of-class time. Suggested answers to CQ's will only be discussed during in-class time. Make sure to ask your class lecturer if anything regarding homework seems unclear.
Resources
Textbook: Ross, S., Bianchi, R., Christensen, M., Drew, M., Westerfield, R. and B. Jordan. 2014. Fundamentals of Corporate Finance (6th ed.) N.Ryde, NSW, Australia: McGraw-Hill Education. ISBN 9781743079485 (this ISBN includes Connect). Weekly readings and homework are set from this textbook.
Connect: a publisher provided, operated and supported 'on-line' learning resource. It is enclosed (or 'wrapped') with the required textbook, if you purchase it through the on-campus Co-Op Bookshop. Instructions on accessing Connect, and its features, will be available in AFIN858-iLearn. Contact the publisher directly for assistance with your technical and content enquiries.
We strongly recommend that you purchase a copy (or electronic copy) of the textbook, especially as only a few copies of the textbook will be available but on a restricted access basis at the MQ Library 'Closed Reserve'.
Recommended References: can include recent editions of e.g.:
Tannous, Brown, Kopp & Zima. Mathematics of Finance. McGraw-Hill.
Petty, Scott, Martin, Burrow, Martin & Nguyen. Financial Mathematics. Pearson.
Peirson, Brown, Easton, Howard & Pinder. Business Finance. McGraw-Hill.
Brealey, Myers, & Marcus. Fundamentals of Corporate Finance. McGraw-Hill.
Please note that you are not required to purchase these reference titles.
Technologies Used and Required: you will need a calculator (non-programmable, either scientific or financial, without text capability) to successfully attempt homework, in-class work, and assessment tasks. Moreover, you will require access and skills to operate a computer and software including: 'word processing'; 'spreadsheet'; and 'internet browsers'. In addition, you will need skills to conduct searches for information in the MQ Library 'catalogues', MQ Library 'databases', and MQ Periodicals 'on-line'. Lastly, you will need skills to use 'iLearn', and attempt quizzes on-line in 'AFIN858-iLearn'.
AFIN858-iLearn: make sure to visit the site at least every few days, especially the 'Announcements' section, so that you have timely access to important information and unit material including general announcements, assessment information and results, and suggested answers and solutions to assigned weekly Q&P's.
Week |
Date |
Topic# |
Chapter |
Homework-CQ's* |
Homework-Q&P's** |
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1 |
Feb 23 |
Introduction to Financial Management and Policy |
Ch 1 (not 1.7) & Ch 2 |
1.2; 1.4; 1.5; 2.1 |
1.3; 2.2; 2.6; 2.12; 2.17; 2.23 |
2 |
Mar 2 |
Financial Statements and Long-term Financial Planning |
Ch 3 & Ch 4 |
Refer to AFIN858-iLearn |
Refer to AFIN858-iLearn |
3 |
Mar 9 |
Valuation of Future Cash Flows - Time Value of Money |
Ch 5 |
" |
" |
4 |
Mar 16 |
Valuation of Future Cash Flows - Valuing Shares & Bonds |
Ch 6 |
" |
" |
5 |
Mar 23 |
Capital Budgeting - Net Present Value & Other Investment Criteria |
Ch 7 |
" |
" |
6^ |
Mar 30 |
Capital Budgeting - Capital Investment & Project Appraisal |
Ch 8 (not pp. 246-7) Ch 9 (only 9.1, 9.2, 9.5) |
" |
" |
^^ |
Apr 6 |
Mid-semester |
2 Week
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Non-teaching |
Period |
7 |
Apr 20 |
Risk and Return - Capital Market History |
Ch 10
|
" |
" |
8^^^ |
Apr 27 |
Risk and Return - Security Market Line |
Ch 11 |
" |
" |
9 |
May 4 |
Current Investment Decisions & Long Term Financing |
Ch 14 (not 14.4) Ch 15 (not pp.481-2) Ch 16 (only 16.1;16.5;16.7) |
" |
" |
10 |
May 11 |
Cost of Capital and Long-term Financing - Shareholder Value |
Ch 17 |
" |
" |
11 |
May 18 |
Cost of Capital and Long-term Financing - Capital Structure |
Ch 19 |
" |
" |
12 |
May 25 |
Cost of Capital and Long-term Financing - Dividend Policy |
Ch 18 |
" |
" |
13 |
Jun 1 |
Revision |
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#Refer to the weekly lecture note cover page for detailed topic description.
*CQ refers to 'Concept Question' e.g. Ch. 1. CQ 1.3 (p. 12), and so on weekly. Discussed during in-class time in the week following the topic lecture (e.g. the Week 5 topic "Capital Budgeting - Part I" homework will be discussed in Week 6).
**Q&P refers to 'Questions and Problems' e.g. Ch. 2 Q&P 2.21 (p. 60), and so on weekly. Discussed during in-class time in the week following the topic lecture (e.g. the Week 5 topic "Capital Budgeting - Part I" homework will be discussed in Week 6).
^Week 6 Friday April 3 is a public holiday. Information regarding availability and venue of alternative classes will be issued in AFIN858-iLearn 'Announcements'
^^Week 6 is followed by a 2 week non-teaching period. For MQ policy regarding work during the non-teaching period, please refer to the heading "Delivery and Resources" section "Workload".
^^^Week 8 Monday 27 April is the Monday following a Saturday public holiday. Information regarding availability and venue of alternative classes will be issued in AFIN858-iLearn 'Announcements'.
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/
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
Disruption to Studies Policy
Further information regarding disruption to studies policy is available here
http://www.mq.edu.au/policy/docs/disruption_studies/policy.html
http://www.mq.edu.au/policy/docs/disruption_studies/schedule_outcomes.html
http://www.mq.edu.au/policy/docs/disruption_studies/schedule_evidence.html
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.
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.
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 able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.
This graduate capability is supported by:
The formative assessment tasks are re-weighted; Quiz (10% to 15%) and Case Study (15% to 20%). Correspondingly, the summative assessment task of Final Examination is reduced from 60% to 50%. Topics on Capital Budgeting are consolidated and re-sequenced earlier to enable better assimilation of knowledge for the formative assessment of Case Study. Topics related to Long Term Financing are re-sequenced consecutively to facilitate learning. A Revision Lecture in Week 13 is added to conclude the unit learning.
Case study is a group assessment task that requires analysis of corporate finance issues in work-related contexts, and collaborative research-based evaluation and formulation of proposals. Hence, Case Study enhances research and practice.