Students

AFIN7008 – Corporate Finance

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

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convener
Clara Zhou
Gary Tian
Credit points Credit points
10
Prerequisites Prerequisites
Admission to MRes
Corequisites Corequisites
Co-badged status Co-badged status
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.
  • ULO5: Critically appraise and review the contemporary literature in corporate finance.

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.

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 9
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 9
Weighting: 25%

 

Students will conduct a literature review and produce 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.
  • Critically appraise and review the contemporary literature in corporate finance.

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 13th Edition

By Stephen Ross and Randolph Westerfield and Jeffrey Jaffe and Bradford Jordan Published by McGraw Hill

Print ISBN 9781265533199

eBook ISBN 9781264364442

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.
  • Assignments
  • 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 13- Introduction to 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:

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 since First Published

Date Description
03/02/2022 Co-taught with AFIN8008

Unit information based on version 2022.02 of the Handbook