Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Tim Kyng
Contact via timothy.kyng@mq.edu.au
wednesdays 2pm-3pm during teaching weeks, or other times by mutual agreement
teaching assistant
Hong Xie
Contact via email
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
ACST603 or (admission to MActPrac post 2014)
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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 covers established methods for the valuation and appraisal of investment projects and related financial decisions. It also covers the new 'real options approach' to investment appraisal, including the application of exotic options pricing formulae to real options using Microsoft Excel to build financial models, and introducing students to Visual Basic/Excel macros for financial modelling.
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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:
For all assessments:
Feedback Prior to the Census Date
A diagnostic online quiz will be available in Week 3 and students can review their answers immediately after attempting the quiz. It will cover the contents from week 1 to 3. Please use this as the feedback piece to decide whether you should withdraw from the unit before the census date.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Class Test | 10% | No | 10 APRIL |
Assignment 1 | 20% | No | 29 March |
Assignment 2 | 20% | No | 10 May |
Final Examination | 50% | No | To be advised. |
Due: 10 APRIL
Weighting: 10%
The class test will be 120 minute open-book written paper with no reading time, held during the lecture time in week 7. It will cover the material in Lectures 1 to 6 inclusive.
Due: 29 March
Weighting: 20%
Students are required to complete two assignments as part of the assessment tasks, both of which to be submitted online via the iLearn site.
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 special consideration is made and approved. No submission will be accepted after solutions have been posted.
Due: 10 May
Weighting: 20%
Students are required to complete two assignments as part of the assessment tasks, both of which to be submitted online via the iLearn site.
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 special consideration is made and approved. No submission will be accepted after solutions have been posted.
Due: To be advised.
Weighting: 50%
The final examination will consist of two tasks - an invigilated exam and a take-home exam. Details will be provided on iLearn.
Classes
For campus students:
For distance students:
Required and Recommended Texts and/or Materials Prescribed
Textbooks:
There is no specific required text for this unit. Detailed lecture materials are provided. However the following books are useful references:
Technology Used and Required
You will be required to use the teaching website, Excel and Word.
Unit Web Page
Course material is available on the learning management system (iLearn). To access the teaching website, go to http://ilearn.mq.edu.au and login using your usual login and password.
Teaching and Learning Activities
Week |
Lecture |
Topics |
1 |
1 |
Introduction to excel, introductory financial mathematics & functions. Translating mathematical formulae into excel code. Application to pricing bonds and bills. Excel implementation. |
2 |
2 |
Further topics in financial mathematics. Amortizing loans, annuities, leases & bonds. Excel implementation. |
3 |
3 |
Introduction to capital budgeting. Project cashflows and methods for their estimation. |
4 |
4 |
Elementary methods of forecasting. Matrix algebra and applications. Implementation in excel. |
5 |
5 |
Project appraisal using NPV, IRR, ARR, PP and other methods. Excel implementation |
6 |
6 |
Methods for estimating model parameters, Sensitivity and breakeven analysis. Case Studies |
7 |
7 |
mid semester exam |
mid-semester study break |
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mid-semester study break |
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8 |
8 |
Introduction to options and valuation via the Black Scholes model. |
9 |
9 |
Binomial option pricing methods and implementation in excel. |
10 |
10 |
Monte Carlo simulation modelling and financial applications. |
11 |
11 |
The "real options approach" to valuation of projects. |
12 |
12 |
Case Studies |
13 |
13 |
Case Studies and revision |
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).
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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
Supplementary exams
Information regarding supplementary exams, including dates, is available at: http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
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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.
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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:
There are minor changes to the sequencing of lecture and tutorial materials. The assessment structure this year includes a mid semester test in week 7. The mid term test and the final exam may include a take home component. As in previous offerings of this unit the exams will be open book.
• This unit gives you practice in applying research findings in your assignments.
• This unit gives you opportunities to conduct your own research.