Students

AFIN1002 – Corporate Finance and Capital Markets

2026 – Session 1, Online-scheduled-In person assessment, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor and Lecturer
Rachel Huang
rachel.huang@mq.edu.au
Contact via Email
Room 531, 4 Eastern Road
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 Submission Penalties

If you submit your assessment late, 5% of the total possible marks will be deducted for each day (including weekends), up to 7 days. Submissions more than 7 days late will receive a mark of 0.

Example 1 (out of 100):

If you score 85/100 but submit 20 hours late, you will lose 5 marks and receive 80/100.

Example 2 (out of 30):

If you score 27/30 but submit 20 hours late, you will lose 1.5 marks and receive 25.5/30.

Extensions

Automatic short extension: Some assessments are eligible for automatic short extension. You can only apply for an automatic short extension before the due date.

Special Consideration: If you need more time due to serious issues and for any assessments that are not eligible for Short Extension, you must apply for Special Consideration. Need help? Review the Special Consideration page for further details.

Assessment Tasks

Name Weighting Hurdle Due Groupwork/Individual Short Extension AI Approach
Skills development: Finance in practice 20% No Week 5 & 8 Individual No Open AI
Skills development: Financial modelling 30% No 15/05/2026 Individual Yes Open AI
Formal examination 50% No Exam period Individual No Observed

Skills development: Finance in practice

Assessment Type 1: Problem-based task
Indicative Time on Task 2: 15 hours
Due: Week 5 & 8
Weighting: 20%
Groupwork/Individual: Individual
Short extension 3: No
AI Approach: Open AI

The purpose of this assessment is for you to apply your understanding and knowledge of key topics from the unit.
 
You will undertake two quizzes. Feedback on your performance will help you assess your progress through the unit content.
 
Skills in focus:
  • Critical thinking and problem solving
  • Discipline knowledge
Deliverable(s): 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: Professional task
Indicative Time on Task 2: 20 hours
Due: 15/05/2026
Weighting: 30%
Groupwork/Individual: Individual
Short extension 3: Yes
AI Approach: Open AI

The purpose of this assessment is for you to develop important skills in building financial models. Task reflects a highly authentic skill set sought by employers and aligns closely with workplace expectations.
 
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]
  • Critical thinking and problem solving
  • Work readiness
Deliverable(s): 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 examination

Assessment Type 1: Examination
Indicative Time on Task 2: 35 hours
Due: Exam period
Weighting: 50%
Groupwork/Individual: Individual
Short extension 3: No
AI Approach: Observed

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(s): 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
  • Academic Success 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.

3 An automatic short extension is available for some assessments. Apply through the Service Connect Portal.

Delivery and Resources

Berk, J., DeMarzo, P., Harford, J., Ford, G., & Mollica, V., 2024, Fundamentals of Corporate Finance, 4th 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 valuation 1: discounted free cash flows
5 Firm valuation 2: 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 Option applications and 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/

Academic Success

Academic Success 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.

Unit information based on version 2026.03 of the Handbook