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.
Unit convenor and teaching staff |
Unit convenor and teaching staff
Mark Stewart
Contact via Email
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Credit points |
Credit points
10
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Prerequisites |
Prerequisites
(AFCP801 or AFCP8001) or (ECFS865 and (ECFS867 or AFCP8004))
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
Corporate Finance is concerned with understanding the link between shareholder value and corporate investment and financing strategies. Students will explore how corporate finance skills can contribute to developing value creating strategies for an organisation. Building on valuation and financial analysis skills from pre-requisite courses, the unit explores how to value an organisation, and assess key investment decisions including capital investment projects, mergers, acquisitions and international investments. The impact on value of risk, optionality and strategic choices is also explored. Valuation approaches utilised include a range of Discounted Cash Flow models, Residual Income and Multiples valuation. The unit considers how to develop practical, value creating financing strategies, including the optimal mix of debt and equity, capital management and debt management strategies. Financing strategies in the context of M&A and international investments are also considered. The unit addresses how to calculate cost of capital for companies and projects, and how to incorporate financing impacts into a valuation. Practical issues in the implementation of the shareholder value objective, including the impact of governance strategies, alternative ownership structures and performance measures are considered. |
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:
Information - Extension Requests / Penalties
Mid-Unit Assignment (12%) and Major Assignment (18%)
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 incurs a 20% penalty). This penalty does not apply for cases in which an application for Special Consideration is made and approved.
Late submissions will be accepted up to 96 hours after the due date and time.
Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration.
Mid-Unit Quiz (12%)
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.
Final Exam (58%)
You are expected to present yourself for examination at the time and place designated in the relevant MAFC Timetable at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables.
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.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Mid-Unit Quiz | 12% | No | Refer to iLearn |
Mid-Unit Assignment | 12% | No | Refer to iLearn |
Major Assignment | 18% | No | Refer to iLearn |
Online Final Exam | 58% | No | Refer to timetable |
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 12.00 hours
Due: Refer to iLearn
Weighting: 12%
Individual online Quiz
Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 12.00 hours
Due: Refer to iLearn
Weighting: 12%
An individual assignment on relevant topics provided in class.
Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 13.00 hours
Due: Refer to iLearn
Weighting: 18%
A Group assignment of up to 12 pages based on a case study and quantitative data supplied.
Assessment Type 1: Examination
Indicative Time on Task 2: 25.00 hours
Due: Refer to timetable
Weighting: 58%
Online exam will be held at the end of term and will be administered via iLearn
1 If you need help with your assignment, please contact:
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
CLASSES
Timetable: Detailed timetable for classes are on the Centre’s website at www.mafc.mq.edu.au
Consultation Times:
Students who wish to contact any of the teaching staff may do so through:
REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS
Text:
Corporate Finance, McGraw-Hill/Irwin:
Either edition of this text can be used. Note that references to the text in the course notes refer to the 10th edition. There is also an ebook version available should you wish to purchase that.
In both cases purchase the TEXT ONLY versions. More expensive versions include access to Connect and LearnSmart however you will be able to access these directly via the unit's iLearn site.
Advanced Material:
Lecture Notes:
Study Problems:
Pre-unit Materials:
Useful References:
Calculators:
Assumed Knowledge: Mathematical content
Present Value = Σn t=0 ((Cash Flow ) / (1+K )t )t
as well as alternate expressions for calculating the present value of a series of cash flows using level and growing perpetuities and annuities.
You should review Chapter 4 of the textbook if you are not comfortable with this material.
Solve for Z5: $1,000 =
$681.20(1+Z5/2)10
Assumed Access:
TECHNOLOGY USED AND REQUIRED
Unit iLearn Site:
Important Notice:
TOPIC 1: SHAREHOLDER VALUE MAXIMISATION
Topics:
TOPIC 2: VALUATION PRINCIPLES: REVIEW & EXTENSION
Topics:
TOPIC 3: VALUATION APPLICATIONS: PART #1
Topics:
Readings
N/A
TOPIC 4: VALUATION APPLICATIONS: PART #2 - PROJECT EVALUATION
Topics:
TOPIC 5: VALUATION APPLICATIONS: PART #3 - STRATEGIC FLEXIBILITY, VALUE & PROJECT SELECTION
Topics:
TOPIC 6: WEIGHTED AVERAGE COST OF CAPITAL
Topics:
TOPIC 7: CAPITAL STRUCTURE & FINANCIAL STRATEGY
Topics:
Readings:
TOPIC 8: ALTERNATIVE VALUATION MODELS
Topics:
Readings
TOPIC 9: CAPITAL MANAGEMENT & EQUITY STRATEGY - PRE- READING
Topics:
TOPIC 9: CAPITAL MANAGEMENT & EQUITY STRATEGY - IN CLASS
Topics:
Readings
TOPIC 10: EVALUATING ASSET BASED FINANCINGS
Topics:
Readings
TOPIC 11: MERGERS & ACQUISITIONS
Topics:
Readings:
Learning and Teaching Activities
Strategy
The Master of Applied Finance degree adopts a deep teaching and learning strategy, in which students acquire and retain knowledge and also are able to make sense of the issues and concepts and apply them in the “real world”. The degree relies heavily on student engagement and participation by: (a) Continuous learning throughout the term. This is encouraged through a combination of students undertaking prescribed reading throughout the units and/or completion of practice problems, case studies, assignments, class presentations etc and interaction via forums in the unit’s iLearn site; and (b) Assessments, which enable the student to demonstrate their understanding of the learning objectives achieved through the continuous learning.
Student Participation
Students participate in this unit by: (a) Attending lectures and participating in class discussion; (b) Before each class, completing the recommended readings of notes and text, and working systematically through suggested problem sets; (c) Interacting on the unit’s iLearn site; and (d) Completing all assessment tasks and exams. On average, the unit will require students to complete, for every hour of class time, approximately 3 hours private study.
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:
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.
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 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
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
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.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
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
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.