Students
AFIN102 – Finance 1B
2017 – S2 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor and Lecturer
Fan Yu
E4A 728
Refer to iLearn
Administrator
Sharon Collett
Administrator
Angela Chow
E4A 620
Angela Chow
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|---|---|
| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
ACST101
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
This unit introduces students to the financial sector, 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 individuals, financial institutions and companies, and applies them to the real world using current examples and market data. It further explores financial institutions and markets, and other real world considerations that affect financial transactions of individuals, financial institutions, companies and governments in a modern economy.
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.
Students without a background of at least HSC Mathematics (2 Unit) or equivalent are strongly advised to have studied MATH123 prior to enrolling in this unit.
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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:
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
- Work productively in a group to successfully complete a financial analysis.
General Assessment Information
It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Online Quiz | 0% | No | Week 4 |
| Midterm | 30% | No | Week 7 |
| Group assignment | 20% | No | Week 10 |
| Final | 50% | No | See exam timetable |
Online Quiz
Due: Week 4
Weighting: 0%
The online quiz is for self-assessment. It will be based on the lectures 1-3.
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved. No submission will be accepted after solutions have been posted.
On successful completion you will be able to:
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
Midterm
Due: Week 7
Weighting: 30%
This 1 hour test will be held during lectures.
On successful completion you will be able to:
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
Group assignment
Due: Week 10
Weighting: 20%
The assignment topic will be announced during the course of the semester. Groups may contain 2 to 4 members, but no more. Details will be released on iLearn. Assignments should be submitted online by uploading the document to iLearn via a Turnitin link.
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved. No submission will be accepted after solutions have been posted.
A question related to the group assignment may be asked in the final exam.
On successful completion you will be able to:
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
- Work productively in a group to successfully complete a financial analysis.
Final
Due: See exam timetable
Weighting: 50%
The 2 hour exam will be based on the entire course. A formula sheet will be provided. The exam is closed book. Notes are not allowed to be brought into the exam.
On successful completion you will be able to:
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
Delivery and Resources
The textbook used in this course is:
Corporate Finance (11th Edition) by Ross, Westerfield, Jaffe, and Jordan, published by McGraw Hill. A copy of the book is reserved in the library.
Course materials are available on iLearn including lecture notes, homeworkl questions, answers and readings.
For students who are looking for other learning resources, the Charted Financial Analyst (CFA) institute has some useful resources: http://www.cfainstitute.org/learning/products/onlinelearning/Pages/60499.aspx?WPID=BrowseProducts
Unit Schedule
| Week | Topic | Comments |
|---|---|---|
| 1 | Introduction | Ch1-Ch5. Tutorials start from week 2. |
| 2 |
Capital Investment Decisions Capital Budgeting |
Ch6 Ch7 |
| 3 |
Bond Valuation Stock Valuation |
Ch8 Ch9 |
| 4 |
Risk and Return CAPM |
Ch10 Ch11. Online quiz due. |
| 5 |
APT Efficient Capital Markets |
Ch12 Ch15 |
| 6 |
Risk, Cost of Capital, and Valuation |
Ch13 |
| 7 | Midterm | |
| 8 | Capital Structure | Ch16, Ch17 |
| 9 | Valuation and Capital Budgeting for the Levered Firm | Ch18 |
| 10 |
Payout Policy Raising Capital |
Ch19 Ch20. Group assignment due. |
| 11 | Options | Ch22 |
| 12 | Short-Term Financing | Ch26 |
| 13 | Review |
Learning and Teaching Activities
Lectures
Homework and Tutorials
Expectation from Students
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy_2016.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html
Disruption to Studies Policy (in effect until Dec 4th, 2017): http://www.mq.edu.au/policy/docs/disruption_studies/policy.html
Special Consideration Policy (in effect from Dec 4th, 2017): https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results
Results shown in iLearn, 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.
Supplementary exams
Information regarding supplementary exams, including dates, is available at: http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/disruption_to_studies
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
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.
Graduate Capabilities
Discipline Specific Knowledge and Skills
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
Learning outcomes
- Understand how financial concepts are expressed in mathematical formulas and then applied in valuing equity, debt, property and business projects.
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
- Work productively in a group to successfully complete a financial analysis.
Assessment tasks
- Online Quiz
- Midterm
- Group assignment
- Final
Critical, Analytical and Integrative Thinking
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Learning outcomes
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
- Work productively in a group to successfully complete a financial analysis.
Assessment tasks
- Online Quiz
- Midterm
- Group assignment
- Final
Problem Solving and Research Capability
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
Learning outcomes
- Understand the importance of law, independence and objectivity of information when working in the finance industry.
- Apply financial theory to real world corporate and personal financial decisions.
- Confidently read and discuss financial publications.
- Work productively in a group to successfully complete a financial analysis.
Assessment tasks
- Online Quiz
- Midterm
- Group assignment
- Final
Changes from Previous Offering
1. We will adopt a textbook (Corporate Finance (11th Edition) by Ross, Westerfield, Jaffe, and Jordan, published by McGraw Hill) for this course for your reference.
2. The order of the topics is rearranged according to the order of the textbook so that students can follow the lectures easily with the book.
3. More details on the topic of options will be discussed.
4. A new topic "short-term financing" is added to reflect the increasing importance of short-term financing in modern corporate finance.
5. Assessment weights are changed from class test (5%), midterm (15%), group assignment (20%), and final (60%) to midterm (30%), group assignment (20%), and final (50%).