Students

AFIN2053 – Financial Management

2022 – Session 1, In person/Online-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Damian Bridge
Rachel Huang
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))
Corequisites Corequisites
Co-badged status Co-badged status
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

Late submissions of assessments

Unless a Special Consideration request has been submitted and approved, no extensions will be granted. There will be a deduction of 10% of the total available assessment-task marks made from the total awarded mark for each 24-hour period or part thereof that the submission is late. Late submissions will only be accepted up to 96 hours after the due date and time.

No late submissions will be accepted for timed assessments – e.g., quizzes, online tests.

Table 1: Penalty calculation based on submission time

Submission time after the due date (including weekends)

Penalty (% of available assessment task mark)

Example: for a non-timed assessment task marked out of 30

<  24 hours

10%

10% x 30 marks = 3-mark deduction

24-48 hours

20%

20% x 30 marks = 6-mark deduction

48-72 hours

30%

30% x 30 marks = 9-mark deduction

72-96 hours

40%

40%  x 30 marks = 12-mark deduction

> 96 hours

100%

Assignment won't be accepted

Other assessment criteria for 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
Quizzes 20% No See iLearn
Mid Session Test 20% No Week 7
Final Examination 60% No Formal Exam Period

Quizzes

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 9 hours
Due: See iLearn
Weighting: 20%

 

There will be up to 10 quizzes held during 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.
  • 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 one hour mid session test will be held during 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: Formal Exam 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

21 February

 Introduction to Financial Management and Risk & Return

1 & 7

2

28 February

Cash Flows & Capital Budgeting

11

3

7 March

Evaluating Project Economics and Capital Rationing

12

4

14 March

The Cost of Capital

13

5

21 March

Working Capital Management

14

6

28 March

Capital Structure Policy

16

7

4 April

Mid Session Test

 

8

25 April

Dividends & Dividend Policy

17

9

2 May

Business Formation Growth & Valuation

Strategic Financial Planning & Forecasting

18  & 19

10

9 May

Options and Corporate Finance

Ch. 20 & Ch.20(Ross)

11

16 May

International Financial Management

Ch 21 & Ch. 5 (Eitman)

12

23 May

Trade Finance

Ch. 20 (Eun)

13

30 May

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:

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

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

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

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

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

No changes to content or text book.


Unit information based on version 2022.03 of the Handbook