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AFCP810 – Finance Principles

2019 – AFC Term 3 Online

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Shane Magee
Contact via Email
Lecturer
Ian Crabb
Contact via Email
Credit points Credit points
4
Prerequisites Prerequisites
Admission to MAppFin or MAppFin(Adv) or GradCertFin
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit provides students with the key building blocks of finance within a single unifying conceptual framework. Students will be introduced to three of the key ideas in finance: the analysis of trade-offs over time, asset valuation and risk management. These concepts will then be applied to the following subfields of finance: corporate finance, investments, and financial markets and institutions.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://students.mq.edu.au/important-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Assessment Tasks

Name Weighting Hurdle Due
Online Participation 20% No In iLearn
Online Quizzes 20% No In iLearn
Assignments 20% No In iLearn
Final Examination 40% No Exam week

Online Participation

Due: In iLearn
Weighting: 20%

Summary of Assessment Task

Individual / Group: Individual.

Due Dates: See iLearn for due dates.

Timing: Online forums will be conducted during the term. You are required to participate actively in these forums, and your contributions will be assessed.

Grading Method: See Assessment Summary in iLearn.

Submission Method: Online via the unit's iLearn site.

Extension Requests:

  • No extensions will be granted. Students who have not submitted the task prior to the due date will be awarded a mark of zero for the task, except for cases in which an application for Special Consideration is made and approved.
  • If you have serious and unavoidable circumstances that prevent you from submitting an assessment task by the due date, you must apply for Special Consideration no later than five (5) working days after the assessment due date.
  • Refer to MAFC Program Rules at https://mafcstudents.mq.edu.au/ for information on the University’s Special Consideration Policy.

On successful completion you will be able to:
  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Online Quizzes

Due: In iLearn
Weighting: 20%

Summary of Assessment Task

Individual / Group: Individual.

Due Dates: See iLearn for due dates.

Timing: Online quizzes will be conducted during the term for topics 3, 4, 5, and 8.

Submission Method: Online via iLearn.

Quiz Conditions: Open book.

Extension Requests:

  • No extensions will be granted. Students who have not submitted the task prior to the due date will be awarded a mark of zero for the task, except for cases in which an application for Special Consideration is made and approved.
  • If you have serious and unavoidable circumstances that prevent you from submitting an assessment task by the due date, you must apply for Special Consideration no later than five (5) working days after the assessment due date.
  • Refer to MAFC Program Rules at https://mafcstudents.mq.edu.au/ for information on the University’s Special Consideration Policy.

On successful completion you will be able to:
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.

Assignments

Due: In iLearn
Weighting: 20%

Summary of Assessment Task

Individual / Group: Individual.

Due Dates: There are two assignments. See iLearn for the due dates for each assignment.

Submission Method: Via iLearn.

Extension Requests:

  • No extensions will be granted. Students who have not submitted the task prior to the due date will be awarded a mark of zero for the task, except for cases in which an application for Special Consideration is made and approved.
  • If you have serious and unavoidable circumstances that prevent you from submitting an assessment task by the due date, you must apply for Special Consideration no later than five (5) working days after the assessment due date.
  • Refer to MAFC Program Rules at https://mafcstudents.mq.edu.au/ for information on the University’s Special Consideration Policy.

On successful completion you will be able to:
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Final Examination

Due: Exam week
Weighting: 40%

Summary of Assessment Task

Individual / Group: Individual.

Due Date: See iLearn for due date.

Submission Method: Online via iLearn.

Duration: 3 hours.

Examination Conditions: 

Extension Requests:

  • No extensions will be granted. Students who have not sat the final examination prior to the due date will be awarded a mark of zero for the task, except for cases in which an application for Special Consideration is made and approved.
  • Refer to MAFC Program Rules at https://mafcstudents.mq.edu.au/ for information on the University’s Special Consideration Policy.

On successful completion you will be able to:
  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Delivery and Resources

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Required Text:

The required textbook for this unit is Finance Principles 2e published by McGraw-Hill. This is a customised textbook for use in the Finance Principles unit, based on chapters from Principles of Corporate Finance, 12th edition by Brealey, Myers, Allen 2014 McGraw-Hill and Fundamentals of Corporate Finance, 8th edition by Brealey, Myers, Marcus 2015 McGraw-Hill.

This customised textbook is available as either a print book or eBook. Details of the two versions are shown below:

Additional Readings: 

  • Additional readings are included in iLearn.
  • Students should assume these readings are assessable unless otherwise advised.

Calculators: 

  • Financial calculations can be performed in either Excel or a financial calculator.
  • If you purchase a financial calculator, it must be able to handle time value of money, logs and power calculations. The Hewlett Packard calculator hp17bII+, Hewlett Packard hp12C-PT and Texas Instruments BA II Plus are suitable for this unit.

Assumed Knowledge: Mathematical content

  • Finance has a high level of numerate content. Consequently this unit is, in parts, mathematical and arithmetical. The applied nature of this unit means the focus is on application of knowledge rather than complex mathematical derivations. What's important is that you are comfortable working with numbers and are not afraid to use formulas to solve problems in finance.
  • The "Essential Maths" document in iLearn can be used to revise your maths skills.

Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy. A recent version of Excel is the preferred choice of spreadsheet.

TECHNOLOGY USED AND REQUIRED

This is an online unit which will make use of the University's iLearn system.

Unit's iLearn Site: 

  • Found by logging on to iLearn ilearn.mq.edu.au, then clicking on AFCP810 Finance Principles.
  • This is where you will find forums, downloadable resources and links to important pages. 
  • The forum allows you to communicate with other students and lecturer(s) and may provide supplementary material. 
  • You are requested to post your questions on the forums at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days. 

Important Notice: 

  • It is important that you familiarise yourself with the unit’s iLearn site. 
  • All students should check iLearn regularly and look for updates and distribution of materials related to the unit or assessments and participate in forum discussions.

Unit Schedule

The following schedule is a guide to the timing of each topic. Details of the required readings are provided in iLearn.

 

Week Topic

Date when you should

have started working

on this topic

0 Topic 0: Essential pre-work 17 June 2019
1 Topic 1: Introduction to finance 24 June 2019
2 Topic 2: Financial markets and institutions 1 July 2019
3 Topic 3: Time value of money 8 July 2019
4 Topic 4: Valuation of financial assets 15 July 2019
5 Topic 4: Valuation of financial assets 22 July 2019
6 Topic 5: Analysing the firm's investment decision 29 July 2019
7 Topic 6: Analysing the firm's financing decision 5 August 2019
8 Topic 7: Risk management 12 August 2019
9 Topic 8: Portfolio theory 19 August 2019
10 Exam preparation 26 August 2019

Learning and Teaching Activities

Strategy

Programs in the Applied Finance Centre adopt a deep teaching and learning strategy in which students acquire and retain knowledge and also are able to make sense of the issues and concepts and apply them in the “real world”. The program relies heavily on student engagement and participation by: (a) Continuous learning throughout the term. This is encouraged through a combination of students undertaking prescribed reading throughout the units and/or completion of practice problems, online activities, case studies, assignments, class discussions, etc and interaction via forums; and (b) Assessments, which enable the student to demonstrate his/her understanding of the learning objectives achieved through the continuous learning.

Student Participation

This is an online unit. Students participate in this unit by: (a) Actively engaging with the required readings of this unit; (b) Working systematically through suggested practice quizzes and completing on‐line activities; (c) Interacting in forums; and (d) Completing all assessment tasks and exams.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/student-conduct​

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) 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 or if you are a Global MBA student contact globalmba.support@mq.edu.au

Students should also consult the MAFC Program Rules found at https://mafcstudents.mq.edu.au/.

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 enquiry service (MAFC-specific)

For all student enquiries, please contact studentsupport@mafc.mq.edu.au

Student Enquiry Service

For all student enquiries, visit Student Connect at ask.mq.edu.au

If you are a Global MBA student contact globalmba.support@mq.edu.au

Equity 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.

Learning Skills

Learning Skills (http://www.students.mq.edu.au/support/learning_skills/) provides academic writing resources and study strategies to improve your marks and take control of your study.

  • Workshops
  • StudyWise
  • Academic Integrity Module for Students
  • Ask a Learning Adviser

IT Help

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.

Graduate Capabilities

PG - Discipline Knowledge and Skills

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:

Learning outcomes

  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Assessment tasks

  • Online Participation
  • Online Quizzes
  • Assignments
  • Final Examination

PG - Critical, Analytical and Integrative Thinking

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:

Learning outcomes

  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Assessment tasks

  • Online Participation
  • Online Quizzes
  • Assignments
  • Final Examination

PG - Research and Problem Solving Capability

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:

Learning outcomes

  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.

Assessment tasks

  • Online Participation
  • Online Quizzes
  • Assignments
  • Final Examination

Important Notice

This Unit Guide may be subject to change. Students will be advised, via an "Announcement' on iLearn, if the Unit Guide is changed.

The latest version is available at https://unitguides.mq.edu.au/.

Students should read the Unit Guide carefully at the start of term. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.