Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor / Lecturer
Roland Winn
Contact via Email
Lecturer
Mark Stewart
Contact via Email
Lecturer
Cosmas Kapsanis
Contact via Email
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
Admission to MAppFin or MAppFin(Adv) or GradDipAppFin
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Corequisites |
Corequisites
AFCP801 or (ECFS865 and ECFS867)
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Co-badged status |
Co-badged status
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Unit description |
Unit description
Corporate Finance is concerned with understanding the link between shareholder value and corporate investment and financing strategies. Students will explore how corporate finance skills can contribute to developing value creating strategies for an organisation. Building on valuation and financial analysis skills from pre-requisite courses, the unit explores how to value an organisation, and assess key investment decisions including capital investment projects, mergers, acquisitions and international investments. The impact on value of risk, optionality and strategic choices is also explored. Valuation approaches utilised include a range of Discounted Cash Flow models, Residual Income and Multiples valuation. The unit considers how to develop practical, value creating financing strategies, including the optimal mix of debt and equity, capital management and debt management strategies. Financing strategies in the context of M&A and international investments are also considered. The unit addresses how to calculate cost of capital for companies and projects, and how to incorporate financing impacts into a valuation. Practical issues in the implementation of the shareholder value objective, including the impact of governance strategies, alternative ownership structures and performance measures are considered.
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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:
To pass this unit the student needs to (1) Achieve an aggregate mark of 50 or more, and; (2) Pass the Final Exam.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Pre-unit Assignment | 10% | No | Refer to iLearn |
Mid-unit Assignment | 20% | No | Refer to iLearn |
Mid-unit Quiz | 7% | No | Refer to iLearn |
Major Assignment | 20% | No | Refer to iLearn |
Final Exam | 43% | Yes | Refer to Timetable |
Due: Refer to iLearn
Weighting: 10%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to the unit's iLearn site.
Assessments: Different class groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section.
Submission Method: Online via Turnitin on the unit's iLearn site.
Duration: Refer to Assignment Coversheet.
Extension Requests:
Due: Refer to iLearn
Weighting: 20%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to the unit's iLearn site.
Assessments: Different class groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section.
Submission Method: Online via Turnitin on the unit's iLearn site.
Duration: Refer to Assignment Coversheet.
Extension Requests:
Due: Refer to iLearn
Weighting: 7%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to iLearn.
Assessments: Different class groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section.
Submission Method: Online via the unit's iLearn site.
Duration: 60 minutes.
Extension Requests:
Due: Refer to iLearn
Weighting: 20%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to the unit's iLearn site.
Assessments: Different class groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section.
Submission Method: Online via Turnitin on the unit's iLearn site.
Duration: Refer to Assignment Coversheet.
Extension Requests:
Due: Refer to Timetable
Weighting: 43%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to Timetable.
Assessments: Different class groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section.
Submission Method: As per MAFC Program Rules at www.mafc.mq.edu.au
Duration: 2 hours plus 10 minutes reading time.
Examination Conditions:
Extension Requests:
Face-to-Face Teaching: Generally 36 hours.
Timetable: Detailed timetable for classes are on the Centre’s website at www.mafc.mq.edu.au
Consultation Times:
Students who wish to contact any of the teaching staff may do so through:
Text:
Corporate Finance, McGraw-Hill/Irwin:
Either edition of this text can be used. Note that references to the text in the course notes refer to the 10th edition, but a table of cross referencing to the 11th edition will be provided.
There is also an ebook version available should you wish to purchase that.
In both cases purchase the TEXT ONLY versions. More expensive versions include access to Connect and LearnSmart however you will be able to access these directly via the unit's iLearn site.
Advanced Material:
Lecture Notes:
Study Problems:
Pre-unit Materials:
Useful References:
Calculators:
Assumed Knowledge: Mathematical content
Present Value = Σnt=0 ((Cash Flow t ) / (1+Kt)t )
as well as alternate expressions for calculating the present value of a series of cash flows using level and growing perpetuities and annuities.
You should review Chapter 4 of the textbook if you are not comfortable with this material.
Solve for Z5: $1,000 = $681.20(1+Z5/2)10
Assumed Access:
Unit iLearn Site:
Important Notice:
Students doing ECFS866 Corporate Finance in 2019 will have done AFCP801 Portfolio Management & Valuation (PMV) as a pre-requisite. You are strongly advised to review the material from Topic 5 of PMV on “Fundamental Stock Analysis”. The iLearn site also contains background material on the “Scope of Corporate Finance” which you are strongly encouraged to review prior to classes, as it helps define the scope of the unit.
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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
Students should also consult the MAFC Program Rules at http://www.mafc.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.
For all student enquiries, please contact studentsupport@mafc.mq.edu.au
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 (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.
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
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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 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:
Pre-reading: Please read the preliminary material provided prior to the first class. It provides an overview of key concepts you should be familiar with, some institutional background on tax systems and some discussion on the scope of corporate finance.
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.
University Policy on Grading:
Specific Unit Grading:
Grade | Expectation |
---|---|
High Distinction | Provides consistent evidence of deep and critical understanding in relation to the learning outcomes. There is substantial originality and insight in identifying, generating and communicating competing arguments, perspectives or problem solving approaches; critical evaluation of problems, their solutions and their implications; creativity in application as appropriate to the discipline. |
Distinction | Provides evidence of integration and evaluation of critical ideas, principles and theories, distinctive insight and ability in applying relevant skills and concepts in relation to learning outcomes. There is demonstration of frequent originality in defining and analysing issues or problems and providing solutions; and the use of means of communication appropriate to the discipline and the audience. |
Credit | Provides evidence of learning that goes beyond replication of content knowledge or skills relevant to the learning outcomes. There is demonstration of substantial understanding of fundamental concepts in the field of study and the ability to apply these concepts in a variety of contexts; convincing argumentation with appropriate coherent justification; communication of ideas fluently and clearly in terms of the conventions of the discipline. |
Pass | Provides sufficient evidence of the achievement of learning outcomes. There is demonstration of understanding and application of fundamental concepts of the field of study; routine argumentation with acceptable justification; communication of information and ideas adequately in terms of the conventions of the discipline. The learning attainment is considered satisfactory or adequate or competent or capable in relation to the specified outcomes. |
Fail | Does not provide evidence of attainment of learning outcomes. There is missing or partial or superficial or faulty understanding and application of the fundamental concepts in the field of study; missing, undeveloped, inappropriate or confusing argumentation; incomplete, confusing or lacking communication of ideas in ways that give little attention to the conventions of the discipline. |
Fail Hurdle | Student has obtained a raw mark over 50, yet failed all available attempts of at least one hurdle assessment. |
Review of Grade and final examination Script viewing: