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AFCX6016 – Finance Principles

2021 – AFC term 1, Fully online/virtual

Notice

As part of Phase 3 of our return to campus plan, most units will now run tutorials, seminars and other small group activities on campus, and most will keep an online version available to those students unable to return or those who choose to continue their studies online.

To check the availability of face-to-face and online activities for your unit, please go to timetable viewer. To check detailed information on unit assessments visit your unit's iLearn space or consult your unit convenor.

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Yin Liao
yin.liao@mq.edu.au
Contact via Email
Credit points Credit points
10
Prerequisites Prerequisites
Admission to GradCertFin (OUA)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit provides students with the key building blocks of finance within a single unifying conceptual framework. Students will be introduced to three of the key ideas in finance: the analysis of trade-offs over time, asset valuation and risk management. These concepts will then be applied to the following sub-fields of finance: corporate finance, investments, and financial markets and institutions.

Important Academic Dates

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

Learning Outcomes

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

  • ULO1: Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • ULO2: Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • ULO3: Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • ULO4: Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • ULO5: Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

General Assessment Information

Information - Extension Requests / Penalties

Online Participation (20%)

No extensions will be granted. Students who have not submitted the task prior to the due date will be awarded a mark of zero for the task, except for cases in which an application for Special Consideration is made andapproved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration.

 

Online Quizzes (20%)

You are expected to make yourself available for assessment during the relevant quiz window.

Students who do not submit this task by the due date and time receive a result of zero. This penalty does not apply when an application for Special Consideration has been made and approved. 

Students who do not attempt the quiz receive a mark of zero. This penalty does not apply in cases where an application for Special Consideration has been made and approved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration.

 

Assignments (two worth 10% each)

Students who do not submit this task by the due date and time receive a result of zero. This penalty does not apply when an application for Special Consideration has been made and approved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration.

 

Final Exam (40%)

Deferral of an examination is not permitted unless an application for Special Consideration is made and approved.

Students who do not attend receive a mark of zero. This penalty does not apply in cases where an application for Special Consideration has been made and approved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration.

Assessment Tasks

Name Weighting Hurdle Due
Online Quizzes 20% No Refer to iLearn
Online Participation 20% No Refer to iLearn
Assignment 20% No Refer to iLearn
Final exam 40% No Refer to iLearn

Online Quizzes

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 3 hours
Due: Refer to iLearn
Weighting: 20%

A number of short online topic quizzes.
On successful completion you will be able to:
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.

Online Participation

Assessment Type 1: Participatory task
Indicative Time on Task 2: 50 hours
Due: Refer to iLearn
Weighting: 20%

Participation in online discussion forums.
On successful completion you will be able to:
  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.

Assignment

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 10 hours
Due: Refer to iLearn
Weighting: 20%

Assignment on a unit topic set by the unit convenor.
On successful completion you will be able to:
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

Final exam

Assessment Type 1: Examination
Indicative Time on Task 2: 12 hours
Due: Refer to iLearn
Weighting: 40%

A 3-hour online exam on all topics covered during the session.
On successful completion you will be able to:
  • Explain the role of financial institutions and markets in the economy and evaluate their effectiveness in allocating resources over time and transferring risk.
  • Explain and demonstrate how time value of money concepts and discounted cash flow techniques are used in the analysis of financial decisions of individuals and firms.
  • Explain and assess the key theories, concepts and models used in asset valuation, risk management, and portfolio theory.
  • Apply key theories, concepts and models to develop solutions to problems in asset valuation, risk management, and portfolio theory.
  • Explain and assess the key theories and concepts used in the analysis of a firm's financing decision.

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 Learning Skills Unit 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

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Required Text:

The required textbook for this unit is Finance Principles 3e published by McGraw-Hill. This is a customised textbook for use in the Finance Principles unit, based on chapters from Principles of Corporate Finance, 13th edition by Brealey, Myers, Allen, 2019, McGraw-Hill and  Fundamentals  of Corporate Finance, 10th edition by Brealey, Myers, Marcus, 2019, McGraw-Hill.

Additional Readings:

  • Additional readings are included in iLearn.
  • Students should assume these readings are assessable unless otherwiseadvised.

Calculators:

  • Financial calculations can be performed in either Excel or a financialcalculator.
  • If you purchase a financial calculator, it must be able to handle time value of money, logs and power calculations. The Hewlett Packard calculator hp17bII+, Hewlett Packard hp12C-PT and Texas Instruments BA II Plus are suitable for thisunit.

Assumed Knowledge: Mathematical  content

  • Finance has a high level of numerate content. Consequently this unit is, in parts, mathematical and arithmetical. The applied nature of this unit means the focus is on application of knowledge rather than complex mathematical derivations. What's important is that you are comfortable working with numbers and are not afraid to use formulas to solve problems infinance.
  • The "Essential Maths" document in iLearn can be used to revise your maths skills.

Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy. A recent version of Excel is the preferred choice of spreadsheet.

TECHNOLOGY USED AND REQUIRED

This is an online unit which will make use of the University's iLearn system.

Unit's iLearn Site:

  • Found by logging on to iLearn ilearn.mq.edu.au, then clicking on AFCP6016 Finance Principles.
  • This is where you will find forums, downloadable resources and links to important pages.
  • The forum allows you to communicate with other students and lecturer(s) and may provide supplementarymaterial.
  • You are requested to post your questions on the forums at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time maynotbeanswered.Please try to not leave your questions to the last few days.

Important:

  • It is important that you familiarise yourself with the unit’s iLearnsite.
  • All students should check iLearn regularly and look for updates and distribution of materials related to the unit or assessments and participate in forum discussions.

Unit Schedule

The following schedule is a guide to the timing of each topic. Details of the required readings are provided in iLearn.

Week

Topic

Date when you should have started working on this topic

0

Topic 0: Essential pre-work

11 January 2021

1

Topic 1: Introduction to finance

18 January 2021

2

Topic 2: Financial markets and institutions

25 January 2021

3

Topic 3: Time value of money

1 February 2021

4

Topic 4: Valuation of financial assets

8 February 2021

5

Topic 4: Valuation of financial assets

15 February 2021

6

Topic 5: Analysing the firm's investment decision

22 February 2021

7

Topic 6: Analysing the firm's financing decision

1 March 2021

8

Topic 7: Risk management

8 March 2021

9

Topic 8: Portfolio theory

15 March 2021

10

Exam preparation

22 March 2021

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/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 Enquiry Service

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

Equity 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.

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.