Students

ACST1001 – Finance Fundamentals

2024 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
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 unit focuses on the fundamental finance skills that are essential for any successful business.
Students will examine the roles and interaction of participants in the financial system and apply financial decision-making tools to value and evaluate investment and financing opportunities. Students will also learn about risk and return, the importance of cash flows and the various financial instruments traded in global financial markets.
Students will develop fundamental finance knowledge and apply this in authentic real-world problems.
Students will develop critical thinking and problem-solving skills.

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 how the financial system supports and influences business decisions.
  • ULO2: Apply time value of money techniques to value financial instruments.
  • ULO3: Explain the relationship between risk and return and calculate the cost of capital for a business.
  • ULO4: Use critical thinking and problem solving to make investment and financing decisions for a business

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.

Workshop Participation - Active Engagement In Class Assessment (expectations, logistics, and special consideration)

Weekly tutorial workshop participation is expected throughout the session. Students are expected to attend all tutorial workshops and participate in activities. Student performance in these activities will be assessed during class. The best 8 out of 12 workshop marks will count towards your unit grade. Despite this '8 out of 12' requirement, participation in all workshops will enhance your chances of success in the unit, as workshops are where we engage with the unit material via active learning, as well as preparation and revision for other unit assessments. There is a positive correlation between workshop participation and unit success.

You do not need to submit a Special Consideration case unless you miss more than 4 workshops. If you do submit a Special Consideration case for the Active Engagement Assessment - in your case-ticket, you must specify how many workshops you have missed in total for this unit. Students who specify that they have only missed 4 or less workshops in total will have their cases automatically declined - as you still have the opportunity to have 8 submissions.

Assessment Tasks

Name Weighting Hurdle Due
Workshop Participation 20% No Weekly in tutorial workshops
Quizzes 20% No First quiz Friday 22 March. Second quiz Friday 19 April.
Assignment 20% No Monday 13 May at 11:59am midday Sydney time
Final Examination 40% No See central exam timetable when available.

Workshop Participation

Assessment Type 1: Participatory task
Indicative Time on Task 2: 10 hours
Due: Weekly in tutorial workshops
Weighting: 20%

 

Weekly workshop participation is expected throughout the session. Students are expected to attend all workshops and participate in activities. Student performance in these activities will be assessed.

 
On successful completion you will be able to:
  • Explain how the financial system supports and influences business decisions.
  • Apply time value of money techniques to value financial instruments.
  • Explain the relationship between risk and return and calculate the cost of capital for a business.
  • Use critical thinking and problem solving to make investment and financing decisions for a business

Quizzes

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: First quiz Friday 22 March. Second quiz Friday 19 April.
Weighting: 20%

 

There are two online quizzes during the session, each worth 10%.

 
On successful completion you will be able to:
  • Explain how the financial system supports and influences business decisions.
  • Apply time value of money techniques to value financial instruments.
  • Explain the relationship between risk and return and calculate the cost of capital for a business.
  • Use critical thinking and problem solving to make investment and financing decisions for a business

Assignment

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 20 hours
Due: Monday 13 May at 11:59am midday Sydney time
Weighting: 20%

 

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

 
On successful completion you will be able to:
  • Explain how the financial system supports and influences business decisions.
  • Apply time value of money techniques to value financial instruments.
  • Explain the relationship between risk and return and calculate the cost of capital for a business.
  • Use critical thinking and problem solving to make investment and financing decisions for a business

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 15 hours
Due: See central exam timetable when available.
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 how the financial system supports and influences business decisions.
  • Apply time value of money techniques to value financial instruments.
  • Explain the relationship between risk and return and calculate the cost of capital for a business.
  • Use critical thinking and problem solving to make investment and financing decisions for a business

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 (1.5 hours) and tutorials (1.5 hours)!

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 and mathematical formulas, with 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 expert and enthusiastic teachers. Students should register for a tutorial. Tutorial participation will be marked and 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!

Prescribed Text

Parino, R. et al. 2020, Fundamentals of Corporate Finance, 4th edition, John Wiley & Sons Ltd, Milton.  e-Text ISBN: 9780730382492. 

https://www.wileydirect.com.au/buy/fundamentals-of-corporate-finance/

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

 

Similar optional books:

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

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

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

Unit Schedule

Week Week date (Tuesday) Lecture topic Lectures scheduled Tutorial workshop scheduled
1 20-Feb The financial system and markets. Yes No
2 27-Feb Returns and interest rates. Yes Yes
3 5-Mar Time value of money. Yes Yes
4 12-Mar Perpetuities and annuities. 10% online quiz, opens Friday 15 March, closes Friday 22 March. Yes Yes
5 19-Mar Capital budgeting principles: net present value (NPV), internal rate of return (IRR) and payback period. Yes Yes
6 26-Mar Capital budgeting special cases: projects of different lives, profitability index. Yes Yes
7 2-Apr Bonds. Yes Yes
8 9-Apr Shares introduction. 10% online quiz, opens Friday 12 April, closes Friday 19 April.  Yes Yes
Mid-session break from Monday 15 April to Sunday 28 April.  No No
9 30-Apr Share pricing, investment and limit order books. Tutorial simulation participation activity (2.5 of 20% participation total). Yes Yes
10 7-May

Market efficiency and the capital asset pricing model (CAPM). 20% Individual assignment due Monday 13 May at 11:59am midday Sydney time.

 Yes Yes
11 14-May Raising capital. Yes Yes
12 21-May Special topics. Yes Yes
13 28-May Final exam revision. Yes Yes
         

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 connect.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 the Service Connect Portal, 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

Macquarie Business School Bachelor degrees have undergone an extensive internal and external review during 2022 and 2023. For 2024, we have refreshed this unit in line with the recommendations of the review panels which included senior academics from other universities, Macquarie University alumni, and industry experts.

Changes since First Published

Date Description
18/02/2024 .
12/02/2024 Updated unit schedule.
07/02/2024 Tutorial simulation participation activity included in the weekly schedule.
29/01/2024 Updated general assessment information

Unit information based on version 2024.04 of the Handbook