Students

AFIN1002 – Corporate Finance and Capital Markets

2025 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Rachel Huang
rachel.huang@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
ACST1001 or ACST1052 or WACT1001
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit introduces students to corporate finance and capital markets, preparing them for more advanced studies in finance, and developing their interest in a career in finance. It explains the theories, principles and methods used in financial decision-making by firms, and applies them to the real world using current examples and market data. Topics covered include the evaluation of investment projects, financial modelling and valuation, risk and return, capital structure and payout policy, debt and equity capital markets, and risk management. This is an interesting and relevant unit for students intending to undertake further studies in any area of business and economics and is required for further studies in 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: Recognise fundamental concepts in corporate finance and capital markets.
  • ULO2: Apply discounted cash flow methods to the valuation of firms, projects and financial assets.
  • ULO3: Apply financial theory to real-world financial decisions of firms.
  • ULO4: Analyse real financial data to evaluate the well-being of firms.

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
Skills development: Finance in practice 30% No Week 5, 8, 12
Skills development: Financial modelling 30% No Week 10
Formal and observed learning: Exam 40% No Exam Period

Skills development: Finance in practice

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: Week 5, 8, 12
Weighting: 30%

 

The purpose of this assessment is for you to apply your understanding and knowledge of key topics from the unit.   You will undertake three quizzes. Feedback on your performance will help you assess your progress through the unit content.   Skills in focus: - Critical thinking - Discipline knowledge - Problem solving   Deliverable: Three quizzes Individual assessment

 
On successful completion you will be able to:
  • Recognise fundamental concepts in corporate finance and capital markets.
  • Apply discounted cash flow methods to the valuation of firms, projects and financial assets.

Skills development: Financial modelling

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 20 hours
Due: Week 10
Weighting: 30%

 

The purpose of this assessment is for you to develop important skills in building financial models - a valuable skill sought by employers.   You will work on discounted free cash flow models, conduct financial statement modelling and determine the cost of capital to value an ASX listed company of your choice.   Skills in focus: - Digital skills [Excel] - Analytical skills - Problem solving   Deliverable: Excel financial model Individual assessment

 
On successful completion you will be able to:
  • Apply discounted cash flow methods to the valuation of firms, projects and financial assets.
  • Apply financial theory to real-world financial decisions of firms.
  • Analyse real financial data to evaluate the well-being of firms.

Formal and observed learning: Exam

Assessment Type 1: Examination
Indicative Time on Task 2: 35 hours
Due: Exam Period
Weighting: 40%

 

The purpose of this assessment is for you to formally demonstrate the expertise you have gained in this unit.   You will participate in a 2-hour exam held during the University Examination period. Important information about the exam will be made available on the unit iLearn page. You should also review the MQ Exams website for general tips.   Deliverable: Formal exam Individual assessment

 
On successful completion you will be able to:
  • Recognise fundamental concepts in corporate finance and capital markets.
  • Apply discounted cash flow methods to the valuation of firms, projects and financial assets.
  • Apply financial theory to real-world financial decisions of 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

Recommended Text

Berk, J., DeMarzo, P., Harford, J., Ford, G., & Mollica, V., 2024, Fundamentals of Corporate Finance, 4rd Edition, Pearson, ISBN: 9780655713395

https://www.pearson.com/en-au/subject-catalog/p/fundamentals-of-corporate-finance/P200000011325/9780655713371

 

Learning and Teaching Activities

The content for each week will comprise a lecture and a set of tutorial questions.

Students will need to register for a tutorial. Tutorials are considered compulsory but no marks are allocated. The tutorial schedule will be made available on iLearn. Tutorial enrollment or tutorial changes can be made through eStudent in the first two weeks of the session. No tutorial changes are allowed after Week 2. Students should attend their allocated tutorial, but exceptions may occur on a one-off basis. That is, where circumstances prevent you from attending your tutorial in a given week, you may attend an alternative tutorial if room is available. Students are expected to complete the ‘Tutorial Questions’ as a self-directed study activity before attending a tutorial. Additional learning support will be available during consultations.

Unit Schedule

Week Topic
1 Introduction to corporate finance
2 Capital budgeting 1: Incremental cash flows
3 Capital budgeting 2: Evaluating investment projects
4 Firm valuation1: Discounted free cash flow model
5 Firm valuation2: Building a financial model
6 Risk and return in capital markets
7 Cost of capital
8 Capital structure policy
9 Equity capital management and payout policy
10 Debt capital markets
11 Options in corporate finance
12 International finance
13 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 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 since First Published

Date Description
10/02/2025 Updated delivery and resources.

Unit information based on version 2025.04 of the Handbook