Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor & Lecturer
Dr. Charles Koh
Please check iLearn for consultation details
Lecturer
Katarina Djukic
Lecturer
Garry Morris
Lecturer
Dr. Lindsay Stubbs
Lecturer
Dr. Peter John Kavalamthara
Angela Chow
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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 Schedule 1 Grading Requirements of the Assessment Policy.
Rubric: the Assignment will be assessed against criterion and performance standards set out in a marking Rubric, which will be provided to project groups as a resource appended to the assignment.
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 Examination mark) will not be addressed.
Name | Weighting | Due |
---|---|---|
Quiz | 10% | Weekly Week 3-12 |
Class Test | 15% | Week 7 |
Assignment | 15% | Week 11 |
Final Examination | 60% | Examination Period |
Due: Weekly Week 3-12
Weighting: 10%
Quiz is an individual 'open-book' assessment task, at a venue of your choice, attempted and submitted in AFIN858-iLearn.
Ten (10) weekly quizzes cover topics listed in the Unit Schedule. A Quiz is a mix of 'theory' and 'calculation' questions, eliciting responses from sets of five (5) pre-determined alternatives i.e. 'multiple-choices', requiring selection of 'ONE (1) BEST' alternative as your preferred answer choice. No 'negative' marking. Eight (8) of your ten (10) scores are randomly selected and counted toward your overall result. Total time available to complete a Quiz is sixty (60) minutes.
No extensions will be granted. Students who have not submitted a Quiz by its deadline will receive a zero (0) mark for that Quiz, except for cases in which the Disruption to Studies Policy applies.
Moreover, make sure to read the Quiz Information, to be issued in AFIN858-iLearn, as it contains additional essential information about this assessment task.
Please use the first quiz as an indicator of whether you are progressing satisfactorily in the unit. If you are having difficulties, please see the Unit Convenor and consider withdrawing before the census date on Friday of week 4.
Due: Week 7
Weighting: 15%
Class Test is an individual 'closed-book' assessment task held in Week 7, during in-class time, at your scheduled venue, under invigilated and time-limited conditions, submitted at the venue. Total time available to complete the Class Test is sixty (60) minutes.
No extensions will be granted. Students who have not submitted the Class Test by its deadline will receive a zero (0) mark for the Class Test, except for cases in which the Disruption to Studies Policy applies.
'Reference' ('Crib' or ‘Formula') Sheet: you are permitted ONE (1) A4 sheet of reference material printed on both sides of the sheet. The material may be handwritten or typed. Questions and the 'reference' sheet will be collected at the end of the Class Test. They will not be returned.
Moreover, make sure to read the Class Test Information, to be issued in AFIN858-iLearn, as it contains additional essential information about this assessment task.
Due: Week 11
Weighting: 15%
A group assessment task, attempted in a project format, during out-of-class time, submitted in AFIN858-iLearn Turnitin by the due date Week 11 Monday 26 October 12:00 noon. The assignment requires (a) analysis of a typical proposal in a workplace context, (b) collaborative evaluation of the corporate finance implications of the proposal, and (c) writing of a brief research based report ('Board Paper') addressed to a Company Board of Directors. Board Papers are assessed on a group-only basis against criterion and performance standards set out in a marking Rubric, provided to groups as a resource appended to the assignment. A group score, feed-back and feed-forward is provided in AFIN858-iLearn GradeMark (assessment software) format. Individual group member scores are recorded in AFIN858-iLearn GradeBook. Moreover, make sure to read the Assignment Information, to be issued in AFIN858-iLearn, as it contains additional essential information (including configuration of project groups) about this assessment task. No extensions will be granted. There will be a deduction of 10% 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 – 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved.
In addition to this 15% unit weighting, a further direct assessment on the assignment will be made as a part of the Final Examination. This assignment component in the Final Examination constitutes an overall 15% unit weighting.
Due: Examination Period
Weighting: 60%
Final Examination is an individual 'closed book' assessment task, attempted at an examination venue centrally timetabled by the University, under invigilated and time-limited conditions, submitted at the examination venue. Total time available to complete the Final Examination is two (2) hours plus ten (10) minutes of 'reading' time.
'Reference' ('Crib' or ‘Formula') Sheet: you are permitted ONE (1) A4 sheet of reference material printed on both sides of the sheet. The material may be handwritten or typed. The 'reference' sheet will be collected at the end of the Final Examination. It will not be returned.
Moreover, make sure to read the current Schedule 4 Final Examination Requirements of the Assessment 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, and attempts at 'take home' assessment tasks including assignment 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 2 topic will be discussed and presented in Week 3). 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. Contingent on how in-class activity unfolds, 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 University 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 unit pages 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 Commencing |
Topic# |
Chapter |
Homework-CQ's* |
Homework-Q&P's** |
---|---|---|---|---|---|
1 |
Aug1 |
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 |
Aug8 |
Financial Statements and Long-term Financial Planning |
Ch 3 & Ch 4 |
Refer to AFIN858-iLearn |
Refer to AFIN858-iLearn |
3 |
Aug15 |
Valuation of Future Cash Flows - Time Value of Money |
Ch 5 |
" |
" |
4 |
Aug22 |
Valuation of Future Cash Flows - Valuing Shares & Bonds |
Ch 6 |
" |
" |
5 |
Aug29 |
Capital Budgeting - Net Present Value & Other Investment Criteria |
Ch 7 |
" |
" |
6 |
Sep5 |
Capital Budgeting - Capital Investment & Project Appraisal |
Ch 8 (not pp. 246-7) Ch 9 (only 9.1, 9.2, 9.6) |
" |
" |
7^ |
Sep12 |
Class Test (in your enrolled class only) Risk and Return - Capital Market History |
Ch 10 |
" |
" |
- |
- |
2 Week Non-Teaching Period |
- |
- |
- |
8^^ |
Oct3 |
Risk and Return - Security Market Line |
Ch 11 |
" |
" |
9 |
Oct10 |
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 |
Oct17 |
Cost of Capital and Long-term Financing - Shareholder Value |
Ch 17 |
" |
" |
11 |
Oct24 |
Case Study Due Mon 26 Oct 12:00 (12 PM) AFIN858-iLearn Cost of Capital and Long-term Financing - Capital Structure |
Ch 19 |
" |
" |
12 |
Oct31 |
Cost of Capital and Long-term Financing - Dividend Policy |
Ch 18 |
" |
" |
13 |
Nov7 |
Revision |
- |
- |
- |
#Refer to the weekly lecture note cover page for detailed topic description. Indicative and subject to change, to be confirmed every two weeks in AFIN858-iLearn.
*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 2 CQ's will be discussed in Week 3). Indicative and subject to change, to be confirmed every two weeks in AFIN858-iLearn.
**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 2 Q&P's will be discussed in Week 3). Indicative and subject to change, to be confirmed every two weeks in AFIN858-iLearn.
^Week 7 is followed by a 2 week non-teaching period. For Macquarie University policy regarding work during the non-teaching period, refer to the heading 'Delivery and Resources' section 'Workload'.
^^Week 8 Monday (3 October) is a public holiday. Information regarding availability and venue of alternative classes (where applicable) 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
New Assessment Policy in effect from Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy_2016.html. For more information visit http://students.mq.edu.au/events/2016/07/19/new_assessment_policy_in_place_from_session_2/
Assessment Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.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://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources 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 following changes inter alia are made to meet the new requirements per the Assessment Policy (effective from S2 2016):
1. A further direct assessment on the assignment is made as a part of the Final Examination. This assignment component in the Final Examination constitutes an overall 15% unit weighting and makes up the 25% of the Final Examination's overall 60% unit weighting. With this change, 50% of group work assessment is now allocated to individual performance (Schedule 2: 2.3);
2. The hurdle requirement in passing the Final Examination is now removed. As the summative assessment tasks constitute at least 75% of the total unit weighting, the fulfilment of unit and program learning outcomes can be achieved without the 'double pass' requirement (Schedule 2: 3);
3. The Final Examination duration has been reduced from 3 to 2 hours. (Schedule 4: 2.1)
The group work component of the Assignment requires (a) analysis of a typical proposal in a workplace context, (b) collaborative evaluation of the corporate finance implications of the proposal, and (c) writing of a brief research based report ('Board Paper') addressed to a Company Board of Directors. Board Papers are assessed on a group-only basis against criterion and performance standards set out in a marking Rubric, provided to groups as a resource appended to the Assignment.