Students

ACST6003 – Principles of Finance

2020 – Session 1, Infrequent attendance, North Ryde

Coronavirus (COVID-19) Update

Due to the Coronavirus (COVID-19) pandemic, any references to assessment tasks and on-campus delivery may no longer be up-to-date on this page.

Students should consult iLearn for revised unit information.

Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students

General Information

Download as PDF
Unit convenor and teaching staff Unit convenor and teaching staff
George Milunovich
Angela Chow
Credit points Credit points
10
Prerequisites Prerequisites
Admission to GradCertFin or GradDipAppFin or MAccg or MAccLead or MAppEcon or MAppFin or MAppFin(Adv) or MBkgFin or MCom or MIntBus or MProfAcc or MProfAccgLead or MBusAnalytics or MBioBus
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit aims to provide students with a knowledge and understanding of the principles and techniques underlying theory and practice in corporate finance. Topics include: basic financial mathematics: interest rates, present values, future values, annuities, perpetuities; valuation and analysis of debt and equity securities; methods for investment evaluation and capital budgeting: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Priod (PP); business organisation and taxation, financial markets and raising finance; tradeoff between risk and return, the cost of capital and capital structure; dividend policy and company valuation; corporate liabilities and international finance; bond valuation and term structure; statistical concepts and risks; fixed income bonds and amortisation; introduction to risk management, application of financial mathematics concepts using MS Excel based activities within a corporate finance context.

Important Academic Dates

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

Learning Outcomes

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

  • ULO1: Exhibit knowledge and understanding of the principles and techniques underlying theory and practice in Corporate Finance and Capital Markets.
  • ULO2: Develop expertise in using spreadsheet software to build financial models and perform calculations for security valuation and corporate decision making.
  • ULO3: Be aware of different financial instruments and their valuation and usefulness in a Corporate Finance context.
  • ULO4: Explain the concepts covered in the course in a clear and concise manner and be able to communicate it to others effectively.

Assessment Tasks

Coronavirus (COVID-19) Update

Assessment details are no longer provided here as a result of changes due to the Coronavirus (COVID-19) pandemic.

Students should consult iLearn for revised unit information.

Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students

General Assessment Information

Final Examination Conditions

  • You are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned to you at the end of the final examination.

 

Assessment Marks

  • It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.

 

Extensions and Penalties on Within Session Assessment Tasks

  • Tasks 10% or less – No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
  • Tasks above 10% – 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.

Delivery and Resources

Coronavirus (COVID-19) Update

Any references to on-campus delivery below may no longer be relevant due to COVID-19.

Please check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status

Classes

  • For Infrequent Attendance Students: 3.5 hours of teaching per week consisting of
    • one 2 hr recorded lecture
    • one 1.5 hr computer practical to be completed by students with the aid of a tutor via a virtual classroom (chatroom), Time: TBA on iLearn)

 

Textbooks

Prescribed Textbook

  • The textbook for this unit is Fundamentals of Corporate Finance by Parrino et al, 3rd Edition (ISBN: 9780730363460, 9780730355175). An electronic version of the book is available from Wiley Direct and is cheaper than the paper version. Also see book online link below: https://www.wileydirect.com.au/buy/fundamentals-of-corporate-finance-3rd-edition. This book covers most but not all of the topics in the unit. The lecture notes will also cover what you need to know. Additional readings may be assigned for the various topics each week. This will either be journal articles, or other materials available on iLearn, web or available electronically e.g. via the Macquarie University Library.

Additional Reference Books

  • Berk, J and Demarzo, P. Corporate Finance, Pearson (ISBN 9780273756033)
  • Beninga Principles of Finance with Excel, Oxford (ISBN 978 0 19 975547 9) This book may be used by students to learn about using MS Excel for the various financial calculations involved in the course, during the tutorial / computer lab sessions.

 

Technology Used and Required

  • You will need access to the internet to obtain course information and download teaching materials from the unit website.
  • It is your responsibility to check the unit website regularly to make sure that you are up-to-date with the information for the unit.
  • MS Excel will be used extensively throughout the unit, and will be assessed in the class test, assignments and final exam.

 

Required Unit Materials and/or Recommended Readings

  • Lecture Notes are the required materials and will be posted on the website before the lectures.
  • Relevant references will be provided in Lecture Notes as recommended materials.  Some of them will be posted on the website.

Unit Schedule

Coronavirus (COVID-19) Update

The unit schedule/topics and any references to on-campus delivery below may no longer be relevant due to COVID-19. Please consult iLearn for latest details, and check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status

Week Topic Assessment Tutorial
1 Business Organisations, Taxation and Financial Statements   No
2 Time Value of Money and Interest Rates   Yes
3 Valuation of Multi-Payment Cash Flows   Yes
4 Amortising loans and Valuation of Fixed Income Bonds Quiz Due (5%) Yes
5 Valuation of Shares and Raising New Capital   Yes
6 Dividend Policy and Company Valuation   Yes
7 Statistical Concepts and Risk   Yes
Recess Mid-Semester Break   No
8 Mid-Semester Test in Class During Lecture Time Mid-Semester Test (20%) No
9 Trade-Off Between Risk and Return Assignment Due (15%) Yes
10 Capital Budgeting - Project Evaluation Methods   Yes
11 Term Structure of Interest Rates and Corporate Bonds   Yes
12 Cost of Capital and Capital Structure   Yes
13 Revision   Yes

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:

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

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 help you improve your marks and take control of your study.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and 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.

Student Enquiries

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

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.

Changes since First Published

Date Description
11/02/2020 hasnt been published yet