Students
AFIN2053 – Financial Management
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
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Damian Bridge
|
|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
50cp at 1000 level or above including ((ACCG100 or ACCG1000 or ACCG106) and (STAT150 or STAT1250 or STAT170 or STAT1170 or STAT171 or STAT1371) and (ACST101 or ACST1001) and (ECON111 or ECON1020))
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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 introductory unit in corporate finance focuses on the financing and investing decisions made by the finance manager of an organisation. While the emphasis is on the theory of the firm, students are also given exposure to current issues affecting corporate finance. Satisfactory completion of the unit equips students with a grasp of the following principals of financial economics: the relation between risk and expected return and the time value of money. The unit also provides an introductory coverage of derivative securities and no arbitrage valuation in the international finance. |
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: Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance.
- ULO2: Explain financing and investing decisions made by finance managers.
- ULO3: Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows.
- ULO4: Apply fundamental analytical techniques in finance to simple real-life problems.
General Assessment Information
Assessment criteria (including information about late submissions and extensions) for all assessment tasks will be provided on the unit iLearn site.
Special consideration
For the Mid Session Test, where special consideration is applied for and approved, students will be given a verbal examination by two members of staff.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Online Quizzes | 20% | No | Weekly - See iLearn |
| Mid Session Test | 20% | No | Week 7 |
| Final Examination | 60% | No | University Examination Period |
Online Quizzes
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 9 hours
Due: Weekly - See iLearn
Weighting: 20%
Weekly online quizzes.
On successful completion you will be able to:
- Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance.
- Explain financing and investing decisions made by finance managers.
- Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows.
- Apply fundamental analytical techniques in finance to simple real-life problems.
Mid Session Test
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 12 hours
Due: Week 7
Weighting: 20%
A mid session test of 90 minutes will be held to give students practice on a summative task and to provide feedback on their progress midway through the session.
On successful completion you will be able to:
- Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance.
- Explain financing and investing decisions made by finance managers.
- Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows.
Final Examination
Assessment Type 1: Examination
Indicative Time on Task 2: 16 hours
Due: University Examination Period
Weighting: 60%
A two hour exam will be held during the University Examination Period.
On successful completion you will be able to:
- Discuss fundamental aspects of the theory of the firm and outline current issues affecting corporate finance.
- Explain financing and investing decisions made by finance managers.
- Demonstrate understanding of the relation between risk and expected return, the time value of money, and valuation of securities via discounted cash flows.
- Apply fundamental analytical techniques in finance to simple real-life problems.
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
Classes
- Students should view the prerecorded lecture each week as well as the appropriate tutorial.
- Online lectures and tutorials will be available each week as well as online consultation.
- Tutorials begin in Week 2 and cover material based on the preceding week's lecture topic.
- Students should attend online PAL Sessions where necessary to improve their understanding of the material covered.
Required and Recommended Texts and/or Materials
The textbook will assist you in the weekly quizzes. Detailed textbook requirements are available on ilearn.
Required Textbook (source for weekly tutorial questions):
- Fundamentals of Corporate Finance 4th Edition Print and Interactive E-Text ISBN : 9780730382577
or
- Fundamentals of Corporate Finance 4th Edition Interactive Wiley E-Text ISBN : 9780730382492
Recommended Textbooks:
- Fundamentals of Corporate Finance, Australian 3rd Edition ISBN : 9780730355175 or 9780730363460 (Fundamentals)
- Fundamentals of Corporate Finance (6th ed.) ISBN 9781743079485 (Ross)
- Multinational Business Finance. Pearson Education Australia. 2nd edition ISBN-10:1442525894; ISBN-13:9781442525894 (Eitman)
- International Financial Management: Sixth Edition ISBN-978-0-07-803465-7 (EUN)
Technology Used and Required
- Financial non-programmable calculators can be used in the unit. A financial calculator is not essential as a scientific non-programmable calculator should meet all your needs (calculation of the Internal Rate of Return (IRR) is not required in any of the assessment tasks). Note: Only non-programmable calculators without text retrieval functionality are allowed for use in the unit’s assessments tasks.
- Students should have access to the internet.
Unit Web Page
- Course material and announcements are available on the learning management system (iLearn).
- Students should check iLearn regularly before each lecture, tutorial and assessment.
Learning and Teaching Activities
The unit is delivered through weekly lectures and tutorial classes. Tutorial questions will mostly be sourced from the required textbook. The question numbers that will be discussed in tutorials will be posted to iLearn each week. Students should attempt these questions before tutorials. Brief answers to the tutorial questions will be posted on iLearn after each week.
To achieve the best possible results students should:
1) View all lectures and tutorial classes.
2) Tutorial questions and problems are assigned from the required text book;
3) Read the assigned chapters of the required text book before attending lectures;
4) Download lecture notes from iLearn, which are available weekly before lectures. Ensure these notes are brought to lectures.
5) Attend PAL sessions where difficulties are experienced.
Unit Schedule
|
Week No. |
Date (Week Beginning) |
Topic |
Chapters (Fundamentals unless stated otherwise) |
|
1 |
26 July |
Introduction to Financial Management and Risk & Return |
1 & 7 |
|
2 |
2 August |
Cash Flows & Capital Budgeting |
11 |
|
3 |
9 August |
Evaluating Project Economics and Capital Rationing |
12 |
|
4 |
16 August |
The Cost of Capital |
13 |
|
5 |
23 August |
Working Capital Management |
14 |
|
6 |
30 August |
Capital Structure Policy |
16 |
|
7 |
6 September |
Mid Session Test |
|
|
8 |
27 September |
Dividends & Dividend Policy |
17 |
|
9 |
4 October |
Business Formation Growth & Valuation Strategic Financial Planning & Forecasting |
18 & 19 |
|
10 |
11 October |
Options and Corporate Finance |
Ch. 20 & Ch.20(Ross) |
|
11 |
18 October |
International Financial management |
Ch 21 & Ch. 5 (Eitman) |
|
12 |
25 October |
Trade Finance |
Ch. 20 (Eun) |
|
13 |
1 November |
Revision |
|
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 from Previous Offering
Update of main textbook from the 3rd to the 4th edition.
Unit information based on version 2021.03 of the Handbook