Students

ACST1001 – Finance 1A

2023 – 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 Convenor
Keith Woodward
keith.woodward@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This is an introductory unit in finance and is a core part of the first year knowledge base in most programs. Students will examine the roles and interaction of participants in Australia’s financial system and apply financial decision making tools to value and evaluate investment and financing opportunities. Students will learn about risk, the importance of cash flows and the various financial instruments traded in global financial markets, risk and regulation. Further, students will develop excel spreadsheet skills used by industry professionals.

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: Explain the role of finance in the economy and apply its tools to make financial decisions.
  • ULO2: Explain the concepts of time value of money, risk and return.
  • ULO3: Apply discounted cash flow techniques to the valuation of financial instruments, including bonds, shares and loans.
  • ULO4: Evaluate investment and financing opportunities.
  • ULO5: Apply Excel spreadsheets to evaluate financial decisions.

General Assessment Information

Late Assessment Submission Penalty (written assessments) 

Unless a Special Consideration request has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. Submission time for all written assessments is set at 11.55pm. A 1-hour grace period is provided to students who experience a technical concern.  

For any late submissions of time-sensitive tasks, such as scheduled tests/exams, performance assessments/presentations, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration.

Assessment Tasks

Name Weighting Hurdle Due
Participation 10% No Each tutorial
Quizzes 25% No 5% quiz Friday 17 Mar, 20% quiz Thursday 6 Apr
Assignment 25% No Monday 15 May, 11:59am Sydney time
Final Examination 40% No University exam period

Participation

Assessment Type 1: Participatory task
Indicative Time on Task 2: 10 hours
Due: Each tutorial
Weighting: 10%

 

Individual participation throughout the unit will be graded and is worth 10%.

 
On successful completion you will be able to:
  • Explain the role of finance in the economy and apply its tools to make financial decisions.
  • Explain the concepts of time value of money, risk and return.
  • Apply discounted cash flow techniques to the valuation of financial instruments, including bonds, shares and loans.
  • Evaluate investment and financing opportunities.

Quizzes

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: 5% quiz Friday 17 Mar, 20% quiz Thursday 6 Apr
Weighting: 25%

 

There are two online quizzes during the session. The first quiz is worth 5% and the second quiz is worth 20%.

 
On successful completion you will be able to:
  • Explain the role of finance in the economy and apply its tools to make financial decisions.
  • Explain the concepts of time value of money, risk and return.
  • Apply discounted cash flow techniques to the valuation of financial instruments, including bonds, shares and loans.
  • Evaluate investment and financing opportunities.

Assignment

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 20 hours
Due: Monday 15 May, 11:59am Sydney time
Weighting: 25%

 

The assignment will cover quantitative and qualitative analysis of a financial scenario or problem.

 
On successful completion you will be able to:
  • Explain the role of finance in the economy and apply its tools to make financial decisions.
  • Explain the concepts of time value of money, risk and return.
  • Apply discounted cash flow techniques to the valuation of financial instruments, including bonds, shares and loans.
  • Evaluate investment and financing opportunities.
  • Apply Excel spreadsheets to evaluate financial decisions.

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 15 hours
Due: University exam period
Weighting: 40%

 

The final examination will be two-hours plus ten-minutes reading time, to be held during the University Examination period.

 
On successful completion you will be able to:
  • Explain the role of finance in the economy and apply its tools to make financial decisions.
  • Explain the concepts of time value of money, risk and return.
  • Apply discounted cash flow techniques to the valuation of financial instruments, including bonds, shares and loans.
  • Evaluate investment and financing opportunities.

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

Learning and Teaching Activities

We look forward to seeing you in the weekly lecture (2 hours) and tutorials (1 hour)!

Tutorials start from week 2, lectures start from week 1

Lectures

We'll discuss some fascinating finance topics including stock investment, valuation and business projects! Each lecture we'll cover some theory, mathematical formulas and practical examples of how both are applied in the real world and in the exams and assignments that you'll complete.

Tutorials

Tutorials are widely regarded as the best learning experience, with small classes led by an expert and enthusiastic teacher. Students should register for a tutorial. Tutorial attendance will be marked and participation assessed. Details will be available on ilearn. 

Tutorial enrolment or change of tutorial can be made through eStudent in the first two weeks of the session. Students should attend their allocated tutorial, but exceptions may occur on a one-off basis. That is, where circumstances prevent you attending your own tutorial in a given week, you may attend an alternative tutorial if room is available. Please do NOT email the unit convenor or any member of the teaching team regarding changing of registered tutorials. We are unable to do this for you. 

Additional learning support will be available during tutor consultation times, and in PAL sessions!

 

Recommended Text

Fundamentals of Corporate Finance, 3rd edition. Jonathan Berk, Peter DeMarzo, Jarrad Harford, Guy Ford & Vito Mollica. Pearson Education Limited. ISBN: 9781488611001

https://multisearch.mq.edu.au/permalink/61MACQUARIE_INST/467l3g/cdi_proquest_ebookcentral_EBC5637846

https://www.pearson.com/store/p/fundamentals-of-corporate-finance/P200000007870/9780655704324

Similar books:

Fundamentals of Corporate Finance, 3rd Global Edition. Jonathan Berk, Peter DeMarzo, Jarrad Harford. Pearson Education Limited 2014. ISBN: 9781292068169

https://multisearch.mq.edu.au/permalink/61MACQUARIE_INST/1c87tk9/alma99244660728502171

Fundamentals of Corporate Finance, 3rd Edition. Robert Parrino. Wiley. ISBN: 9780730355175

https://multisearch.mq.edu.au/permalink/61MACQUARIE_INST/7h5qs5/alma99244739307802171

 

Technology Used and Required

Calculator

A calculator will be required for the various calculations throughout the session, and for the Final Examination. 

Scientific calculators need the following minimum functionality: xy or ^ functions. Non-programmable financial calculators are permitted too, but unnecessary.

Software

Students should have access to Excel software (version 2013 or more recent),

See https://students.mq.edu.au/support/technology/service-desk/office-365 for instructions on how to get your free copy of Microsoft Office!

Knowledge of Maths

A background of HSC General Mathematics or equivalent numerical competency is assumed. 

Students requiring assistance with the unit's mathematical elements throughout the term may consult with the Numeracy Centre team during appointed hours (no appointment needed). https://students.mq.edu.au/support/study/numeracy

Students without HSC General Mathematics or equivalent, are best advised to not undertake ACST1001 until completing a math unit (MATH1000 or ECON1031).

Unit Schedule

Week

Week date (Monday)

Lecture topic

1

20 Feb

 Financial decisions, institutions and investing.

2

27 Feb

 Time value of money principles.

3

6 Mar

 Tools for financial decisions.

4

13 Mar

 Capital budgeting: NPV, IRR and payback period. 5% quiz Friday 17 March

5

20 Mar

 Capital budgeting: Incremental free cash flows.

6

27 Mar

 Valuation of bonds and shares.
7 3 Apr

Risk and return. 20% quiz Thursday 6 April
Mid-session break from Monday 10 Apr to Sunday 23 Apr. 

8

24 Apr

 Cost of capital.

9

1 May

Raising capital.

10

8 May

Capital structure policy.

11

15 May

Payout policy. 25% Individual assignment due Monday 15 May at 11:59am Sydney time

12

22 May

Special topics.

13

29 May

Final exam 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

Some fresh and exciting new topics have been included!

Changes since First Published

Date Description
16/02/2023 Links fixed

Unit information based on version 2023.04 of the Handbook