Unit convenor and teaching staff |
Unit convenor and teaching staff
Associate Professor
Vito Mollica
North Ryde campus
Weekly class - Thursdays 6pm - 10pm (Starts: 10th January 2019)
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
MGNT803
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
Principles of corporate finance are introduced namely valuation and pricing of assets, evaluation of investment proposals and financial policy. Company projects and financial planning models are used to provide context. The unit covers methods used in evaluating investment projects and an introduction is given to the local debt and equity markets.
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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 |
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Mid-term Test | 40% | No | Week 6 |
Final Examination | 60% | No | Exam Week (18 - 23 March 2019) |
Due: Week 6
Weighting: 40%
90-minute in class exam. Open book. You will need to be familiar with all materials covered in earlier classes and readings.
Due: Exam Week (18 - 23 March 2019)
Weighting: 60%
The final examination is of three (3) hours and ten (10) minutes reading time and will be held in the Term 3 Exam Week. More details on the exam will be provided in class.
The exam format will be closed book. The only aids permitted are
More details on the exam will be provided in class.
Required Text
Berk, J., Ford, G., DeMarzo, P., Harford, J., Finch, N. & Mollica, V. (2017) Fundamentals of Corporate Finance, 3rd edition, Pearson, ISBN: 9781488611001
Additional required readings will be available via iLearn
Weekly practice problems and answers will be made available via iLearn.
For information on textbook prices and online ordering, please refer to the Co-Op Bookshop webpage at http://www.coop.com.au
The web page for this unit can be found at: https://ilearn.mq.edu.au/login/MGSM
The timetable for classes can be found on the MGSM Student website at https://students.mgsm.edu.au/sydney-students/units/timetables
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, financial manager decisions and flow of funds
Textbook: |
Berk: chapters 1 & 3 |
Topic 2: Time Value of Money and the Valuation of Cashflow Streams
Covers the basic financial mathematics used in corporate finance, including effective interest rates, and the present/future value of different cash flow streams.
Textbook: |
Berk: chapters 4 & 5 |
Topic 3: Investment Decision Rules
Covers four investment evaluation techniques, Payback, Accounting Rate of Return, Net Present Value and Internal Rate of Return and issues in applying the investment criteria.
Textbook: |
Berk: chapter 8 |
Covers special cases in the application of the Net Present Value investment criteria.
Textbook: |
Berk: chapter 9 |
Supplementary Materials: |
see iLearn |
Topic 5:Equity and Debt Valuation
Covers the characteristics of debt and equity instruments, their valuation, and the markets in which they transact.
Textbook: |
Berk: chapter 5,6, & 10 |
Topic 6:Financial Modelling and Growth
Covers the development of a pro-forma financial model for a firm by directly forecasting capital expenditure, working capital and financing needs.
Textbook: |
Berk: chapter 18 & 2 |
Covers the pricing of equity market risk using the capital asset pricing model.
Textbook: |
Berk: chapters 11 & 12 |
Topic 8:Cost of Capital and Capital Structure
Covers the measurement of a firms cost of capital and the determination of the impact of corporate decisions on funding streams
Textbook: |
Berk: chapters 13 & 16 |
Topic 9: Dividend Policy
Covers dividend policy, the impact of imputation credits and equity buybacks schemes.
Textbook: |
Berk: chapter 17 |
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No changes from previous offering
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