Unit convenor and teaching staff |
Unit convenor and teaching staff
Associate Professor
Vito Mollica
Contact via +61 (2) 9850 9097
Block Class: January 18-20, Feb 2-3 2019
Paul Marevich
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
MGSM840
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
The fundamentals of financial management are introduced from the perspective of the finance manager in a firm, namely those making investment, financing and dividend decisions. Finance theory is applied with the aim of providing a coherent framework and insights to assist in forming reasoned judgements. Case studies and financial planning models are used to provide context. The unit covers methods used in evaluating investment projects, assessing risk for competing projects, valuation and capital structure.
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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:
Name | Weighting | Hurdle | Due |
---|---|---|---|
Mid-Term Exam | 40% | No | In class Session 6 |
Final Examination | 60% | No | Exam Week: 18 - 23 March 2019 |
Due: In class Session 6
Weighting: 40%
90-minute in class exam. Multiple choice and short answer
Due: Exam Week: 18 - 23 March 2019
Weighting: 60%
Duration: 3 hours plus 10 minutes reading time
Format: Closed book exam
Date: Exam Week 18 - 23 March 2019
Weighting: 60%
The exam format will be closed book. The only aids permitted are
(i) A hand-held calculator (non-programmable or scientific), and
(ii) One (1) double-sided A4 piece of paper containing any information
More details on the exam will be provided in class.
Recommended Text
Berk, J., DeMarzo, P., Harford, J., Ford, G., & Mollica, V., 2017, Fundamentals of Corporate Finance, 3rd Edition, Pearson, ISBN: 9781488611001
For information on textbook prices and online ordering, please refer to the Co-Op Bookshop webpage at http://www.coop.com.au
http://www.pearson.com.au/products/A-C-Berk-DeMarzo-Harford-Ford-Mollic/A-C-Berk-Jonathan-et-al/Fundamentals-of-Corporate-Finance/9781488611001?R=9781488611001
MGSM iLearn
The web page for this unit can be found at: https://ilearn.mq.edu.au/login/MGSM
Block Class: January 18-20, Feb 2-3 2019
Students are required to attend all classes.
The unit will be presented over 10 Sessions as follows:
Session |
Topic |
Textbook Chapter |
1 |
Introduction/Time Value of Money |
Chapters 1 |
2 |
Financial Mathematics |
Chapters 3, 4, & 5 |
3 |
Capital Budgeting and Investment Evaluation |
Chapters 8 |
4 |
Capital Budgeting and Investment Evaluation-NPV Special Topics |
Chapters 9 |
5 |
Stocks and Bonds |
Chapter 6 & 7 |
6 |
Business Valuation |
Chapter 2, 10 & 18 |
7 |
Risk and Return |
Chapters 11 12 |
8 |
Capital Structure and Cost of Capital |
Chapters 13, 14, 15 & 16 |
9 |
Payout Policy |
Chapter 17 |
10 |
Revision |
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Unit Requirements:
Students are required to:
a. Prepare for and participate in class
b. Complete a mid-semester exam (40%)
c. Complete a three-hour, closed-book examination (60% of total unit mark)
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).
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 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
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
If you are a Global MBA student contact globalmba.support@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 demonstrate a high standard of discernment and common sense in their professional and personal judgment. They will have the ability to make informed choices and decisions that reflect both the nature of their professional work and their personal perspectives.
This graduate capability is supported by:
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 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:
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:
Our postgraduates will be ethically aware and capable of confident transformative action in relation to their professional responsibilities and the wider community. They will have a sense of connectedness with others and country and have a sense of mutual obligation. They will be able to appreciate the impact of their professional roles for social justice and inclusion related to national and global issues
This graduate capability is supported by:
No changes from previous offering.
Leadership: The unit develops skills required of leaders with respect to the synthesis of a wide array of financial information in order to make well-informed and financially robust strategic decision.
Global mindset: The unit enables learners to assess the implications of strategic decisions from a whole of entity perspective, across a wide spectrum of stakeholders
Citizenship: The unit supports learners to conduct decisions taking into account the implications for all stakeholders and without abusing power or privilege
Creating sustainable value: The unit encourages adoption of a forward-looking perspective on the impact of decisions on the financial position and performance of the entity
The interactive environment of the classroom is central to the MGSM experience. Students are required to attend the full duration of all classes for the units in which they are enrolled. We recognise that exceptional circumstances may occur, such as unavoidable travel on behalf of your organization or the serious illness or injury of you or a close family member. Special consideration may be given for a maximum of 20% non-attendance for such circumstances as long as lecturers are contacted in advance, and supporting documentation provided, to request exemption from attendance. Failure to abide by these conditions may result in automatic withdrawal, with academic and/or financial penalty. The full Student Attendance Policy is published in the MGSM Student Handbook at https://students.mgsm.edu.au/handbook
The content of this unit is provided for educational purposes only and no decision should be made based on the material without obtaining independent professional advice relating to the particular circumstances involved.
Please note that the program is listed in order of the topics to be covered, and not lecture time- slots. Consequently, some topics may run over the class period, whereas others will be shorter than the class period.
Covers corporate objectives, corporate financial decisions and potential conflicts when setting financial objectives.
Textbook: |
Berk: chapters 1 |
Topic 2: Financial mathematics
Covers the basic mathematics used in financial valuation, including the present value of different cash flow structures and accumulated future cash positions for different cash flow structures.
Textbook: |
Berk: chapters 3, 4 & 5 |
Topic 3: Capital budgeting and investment evaluation
Covers investment evaluation techniques and issues in applying the net present value technique and special applications of the net present value technique.
Textbook: |
Berk: chapters 8 & 9 |
Covers valaution of stocsk and bonds and techniques for valuing companies, including the free-cash flow approach and earnings multiples approaches.
Textbook: |
Berk: chapter 6 & 7 |
Supplementary Materials: |
see iLearn |
Covers sustainable growth and valuing the financing (debt and equity) components of a company
Textbook: |
Berk: chapter 2, 10 & 18 |
Supplementary Materials: |
see iLearn |
Covers the pricing of equity market risk using the capital asset pricing model.
Textbook: |
Berk: chapters 11 & 12 |
Topic 7: Capital Structure Decisions and cost of capital
Covers the criteria and considerations for deciding the optimal capital structure of a company and calculating the weighted average cost of capital
Textbook: |
Berk: chapters 13,14, 15 & 16 |
Topic 8: Management of equity: Dividend decisions and equity buybacks
Covers dividend policy, the impact of dividend imputation and capital gains tax, and equity buybacks.
Textbook: |
Berk: chapter 17 |