Students
AFIN8008 – Corporate Finance
2021 – Session 2, Special circumstances
Session 2 Learning and Teaching Update
The decision has been made to conduct study online for the remainder of Session 2 for all units WITHOUT mandatory on-campus learning activities. Exams for Session 2 will also be online where possible to do so.
This is due to the extension of the lockdown orders and to provide certainty around arrangements for the remainder of Session 2. We hope to return to campus beyond Session 2 as soon as it is safe and appropriate to do so.
Some classes/teaching activities cannot be moved online and must be taught on campus. You should already know if you are in one of these classes/teaching activities and your unit convenor will provide you with more information via iLearn. If you want to confirm, see the list of units with mandatory on-campus classes/teaching activities.
Visit the MQ COVID-19 information page for more detail.
General Information
Download as PDF
| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Clara Zhou
|
|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
(Admission to MActPrac or MFin) or (ACST603 or ACST6003 or MGNT603 or ACCG6003) or (AFIN8009 or AFIN858 or MGNT808)
|
| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
Co-badged with AFIN7008
|
| Unit description |
Unit description
The objective of this unit is to explore the theory and application of corporate finance issues at an advanced level, and to equip students with the required depth of knowledge and skill expected of a professional. Following a brief revision of basic financial concepts covered in earlier finance courses, the unit investigates the more complicated theoretical issues and analytical techniques in corporate finance. In particular, a critical approach is adopted which involves identifying the assumptions and limitations of these techniques when applied to the real world. Students are encouraged to understand that often the best method is a matter of debate, and that they must choose a method from a group of methods all of which have various limitations. This critical approach is reinforced by examining a number of real life corporate finance projects. |
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: Apply investment and financing concepts to business decisions.
- ULO2: Evaluate cost of capital, project risks and the financial viability of projects.
- ULO3: Assess the effect of capital structure on value of firms and projects.
- ULO4: Use options methodology to value business opportunities and firms.
General Assessment Information
Assessment criteria (including information about late submissions and extensions) for all assessment tasks will be provided on the unit iLearn site.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Online Quizzes | 5% | No | Week 3 |
| Mid Session Test | 20% | No | Week 7 |
| Individual Research Report | 25% | No | Week 10 |
| Final Examination | 50% | No | University examination period |
Online Quizzes
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 3
Weighting: 5%
Online quizzes consisting of multiple choice and/or short answer questions.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions.
- Evaluate cost of capital, project risks and the financial viability of projects.
- Assess the effect of capital structure on value of firms and projects.
- Use options methodology to value business opportunities and firms.
Mid Session Test
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 7
Weighting: 20%
A mid session test of 60-75 minutes will be held during the session.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions.
- Evaluate cost of capital, project risks and the financial viability of projects.
- Assess the effect of capital structure on value of firms and projects.
Individual Research Report
Assessment Type 1: Report
Indicative Time on Task 2: 20 hours
Due: Week 10
Weighting: 25%
Students will research a topic and prepare a 1,500 word report.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions.
- Evaluate cost of capital, project risks and the financial viability of projects.
- Assess the effect of capital structure on value of firms and projects.
- Use options methodology to value business opportunities and firms.
Final Examination
Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: University examination period
Weighting: 50%
A two hour exam will be held during the University Examination Period.
On successful completion you will be able to:
- Apply investment and financing concepts to business decisions.
- Evaluate cost of capital, project risks and the financial viability of projects.
- Assess the effect of capital structure on value of firms and projects.
- Use options methodology to value business opportunities and firms.
1 If you need help with your assignment, please contact:
- the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
- the Writing Centre for academic skills support.
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
Delivery and Resources
Textbook
Corporate Finance 12th Edition
By Stephen Ross and Randolph Westerfield and Jeffrey Jaffe and Bradford Jordan
Published by McGraw Hill
It is available for purchase online via the below options:
Print copy: 9781260091878
McGraw Hill Website:
https://www.mheducation.com.au/ise-corporate-finance-9781260091878-aus
eBook: 9781260289541
VitalSource Website:
Unit Web Page
The unit Website AFIN8008-iLearn is only available to students enrolled in AFIN8008 and AFIN7008.
The Website will contain important unit materials, including:
- Course details — an outline of the unit, including assessment tasks
- Announcements — notices updating students on important matters regarding the unit.
- Assignment
- Suggested answers and solutions to homework questions
- Results — for assignment and other assessable material
Technology Used and Required
The textbook provides access to various online resources. Further, a number of the class exercises are designed to be completed using Excel. Students are encouraged to use excel when attempting these exercises.
Unit Schedule
| Week | Topic | Chapters |
| 1 | Topic 1-Overview of corporate finance and valuation | 1, 4, 5 |
| 2 | Topic 2-Project evaluation and project risk analysis | 6, 7 |
| 3 | Topic 3-Alternative theories on risk and return | 11,12 |
| 4 | Topic 4-Capital structure | 16, 17 |
| 5 | Topic 5-Valuation and capital budgeting | 18 |
| 6 | Topic 6-Raising capital | 20 |
| 7 | Mid Session Test (No lecture) | |
| 8 | Topic 7-Dividend policy | 19 |
| 9 | Topic 8-Convertible bonds, warrants and lease finance | 21, 24 |
| 10 | Topic 9-Financial options | 22 |
| 11 | Topic 10-Real options | 23 |
| 12 | Topic 11-Mergers, acquisitions and divestitures | 29 |
| 13 | Topic 12- Research in corporate finance and exam overview | iLearn Materials |
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/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 |
|---|---|
| 19/07/2021 | Small typo in the unit schedule |
Unit information based on version 2021.03 of the Handbook