Students
AFIN102 – Finance 1B
2018 – S2 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor and Lecturer
Rachel Huang
Contact via 0298504419
7-177
Refer to iLearn
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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
Details: Assessment criteria for all assessment tasks will be provided on the unit ilearn site.
Consultation: Teacher consultation times will be posted to iLearn.
Questions: Subject-related questions whose answer is useful to everyone should be posted to the iLearn discussion board. Questions of a personal nature can be emailed to the teachers.
Marks in gradebook: It is the responsibility of students to view their marks for each 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 tasks (not including the final exam mark) will not be addressed.
Special consideration: Where a Special Consideration application is approved, the student may be offered an alternative assessment or may receive a mark based on the percentage mark achieved by the student in one or more other assessment tasks, at the Unit Convenor’s discretion. For details, please refer to the section of Policies and Procedures.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Self-assessment test | 0% | No | Mon 20 August 2018 |
| Week 5 in-tutorial test | 10% | No | Week 5 |
| Mid semester class test | 25% | No | Week 8 |
| Group assignment | 20% | No | Week 10 |
| Final Exam | 45% | No | See Exam Timetable |
Self-assessment test
Due: Mon 20 August 2018
Weighting: 0%
Please use this assessment task as an indicator of whether you are progressing satisfactorily in the unit. The test will be administered online in the form of multiple-choice questions. If you are having difficulties, please see your tutor or lecturer in consultation or the Peer Assisted Learning (PAL) teacher for more help, or consider withdrawing from the subject before the census date on Friday of week 4.
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.
- Apply financial theory to real world corporate and personal financial decisions.
Week 5 in-tutorial test
Due: Week 5
Weighting: 10%
This 40-minute test will be held during tutorials. It may consist of multiple-choice and/or calculation questions.
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.
- Confidently read and discuss financial publications.
Mid semester class test
Due: Week 8
Weighting: 25%
This 1 hour and 30 minutes test will be held during lectures. It may consist of multiple-choice, calculation, and essay questions.
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.
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. 50% of the marks will be allocated to individual performance.
No extensions will be granted unless for special consideration. 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).
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 Exam
Due: See Exam Timetable
Weighting: 45%
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. Practice exams may be made available online.
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
Textbook:
Fundamentals of Corporate Finance (3rd Edition) by Berk, Demarzo, Harford, Ford, and Mollica, published by Pearson. A copy of the book is reserved in the library.
Course materials:
Course materials are available on iLearn including lecture notes, tutorial questions, answers and readings. For a better learning experience, please read through lecture notes before lectures and attempt tutorial questions before tutorials.
For students who are looking for other learning resources, the following textbook can be sought, but it's not compulsory:
Corporate Finance (11th Edition) by Ross, Westerfield, Jaffe, and Jordan, published by McGraw Hill.
The Charted Financial Analyst (CFA) institute also has some useful resources: http://www.cfainstitute.org/learning/products/onlinelearning/Pages/60499.aspx?WPID=BrowseProducts
A scientific (or financial) calculator is needed for you to complete the assessments throughout the course.
Unit Schedule
| Week | Date (Monday) | Topic | Reference |
| 1 | 30.7.18 |
Introduction Interest Rates |
Chapter 1 Chapter 5 |
| 2 | 6.8.18 |
Bond Valuation and Corporate Bond Ratings Investment Decision Rules |
Chapter 6 Chapter 8.3-8.7 |
| 3 | 13.8.18 |
Incremental Cash Flows & Project Valuation Self-assessment test due (0%). |
Chapter 9
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| 4 | 20.8.18 |
Share Valuation - DCF Model and Multiple |
Chapter 7, 10
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| 5 | 27.8.18 |
Fundamentals of Portfolio Management Tutorial test (10%). |
Chapter 11 |
| 6 | 3.9.18 |
Systematic Risk and the Equity Risk Premium |
Chapter 12 |
| 7 | 10.9.18 | Cost of Capital | Chapter 13 |
| Break | Monday 17.9.18 to Friday 1.10.18 | ||
| 8 | 2.10.18 | Mid-semester test in lectures (25%). | |
| 9 | 8.10.18 | Long-term Capital Financing | Chapter 14-15 |
| 10 | 15.10.18 |
Capital Structure Group assignment due (20%). |
Chapter 16
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| 11 | 22.10.18 | Payout Policy | Chapter 17 |
| 12 | 29.10.18 | Merger and Acquisition | Chapter 21 |
| 13 | 5.11.18 | Revision. | |
Tutorial questions will be made available on iLearn.
Learning and Teaching Activities
Lectures and Tutorials
Homework
Expectation from Students
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/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
Further information regarding supplementary exams, including dates, is available here
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
- Self-assessment test
- Week 5 in-tutorial test
- Mid semester class test
- Group assignment
- Final Exam
Learning and teaching activities
- The unit is delivered through weekly lectures and tutorial classes. Tutorial questions will be posted to iLearn. Students should complete tutorial questions in advance since teachers will progress at the rate preferred by those students who have attempted the work. Teachers welcome questions and enjoy discussions of the concepts. Answers to the tutorial questions will be posted on iLearn after each week.
- Weekly homework and review of prerequisite course are essential to be successful in the unit. Homework questions and solutions will be available on both iLearn and MyFinanceLab. Please complete the homework independently and check your answer with the standard solution provided. If you have access to MyFinanceLab, you will get immediate feedback of all the questions of the homework. You can also work on more practice problems on MyFinanceLab.
- To achieve the best possible results in this unit: Try not to miss a lecture or tutorial class. This subject moves very fast and each week builds on the one before. Do as many practice questions as possible. Bring the lecture notes and tutorial questions to class and raise questions with your teachers. Talk about the topics with your friends and relatives. Many people enjoy friendly discussions about property, shares, leverage, taxes and interest rates.
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 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
- Mid semester class test
- Group assignment
- Final Exam
Learning and teaching activities
- The unit is delivered through weekly lectures and tutorial classes. Tutorial questions will be posted to iLearn. Students should complete tutorial questions in advance since teachers will progress at the rate preferred by those students who have attempted the work. Teachers welcome questions and enjoy discussions of the concepts. Answers to the tutorial questions will be posted on iLearn after each week.
- Weekly homework and review of prerequisite course are essential to be successful in the unit. Homework questions and solutions will be available on both iLearn and MyFinanceLab. Please complete the homework independently and check your answer with the standard solution provided. If you have access to MyFinanceLab, you will get immediate feedback of all the questions of the homework. You can also work on more practice problems on MyFinanceLab.
- To achieve the best possible results in this unit: Try not to miss a lecture or tutorial class. This subject moves very fast and each week builds on the one before. Do as many practice questions as possible. Bring the lecture notes and tutorial questions to class and raise questions with your teachers. Talk about the topics with your friends and relatives. Many people enjoy friendly discussions about property, shares, leverage, taxes and interest rates.
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 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
- Mid semester class test
- Group assignment
- Final Exam
Learning and teaching activities
- The unit is delivered through weekly lectures and tutorial classes. Tutorial questions will be posted to iLearn. Students should complete tutorial questions in advance since teachers will progress at the rate preferred by those students who have attempted the work. Teachers welcome questions and enjoy discussions of the concepts. Answers to the tutorial questions will be posted on iLearn after each week.
- Weekly homework and review of prerequisite course are essential to be successful in the unit. Homework questions and solutions will be available on both iLearn and MyFinanceLab. Please complete the homework independently and check your answer with the standard solution provided. If you have access to MyFinanceLab, you will get immediate feedback of all the questions of the homework. You can also work on more practice problems on MyFinanceLab.
- To achieve the best possible results in this unit: Try not to miss a lecture or tutorial class. This subject moves very fast and each week builds on the one before. Do as many practice questions as possible. Bring the lecture notes and tutorial questions to class and raise questions with your teachers. Talk about the topics with your friends and relatives. Many people enjoy friendly discussions about property, shares, leverage, taxes and interest rates.
Changes from Previous Offering
A new topic (Merger and Acquisition) to be delivered in week 12 is added to the previous offering.