Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Tim Kyng
Contact via timothy.kyng@mq.edu.au
thursdays 11am-12pm during teaching weeks, or other times by appointment
Angela Chow
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
ACST603 or (admission to MActPrac post 2014)
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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 covers established methods for the valuation and appraisal of investment projects and related financial decisions. It also covers the new 'real options approach' to investment appraisal, including the application of exotic options pricing formulae to real options using Microsoft Excel to build financial models, and introducing students to Visual Basic/Excel macros for financial modelling.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
For all assessments:
Name | Weighting | Hurdle | Due |
---|---|---|---|
Class Test | 5% | No | 22 March |
Assignment 1 | 20% | No | 29 March |
Assignment 2 | 25% | No | 10 May |
Final Examination | 50% | No | University Examination Period |
Due: 22 March
Weighting: 5%
The class test will be 60 minute open-book written paper with no reading time, held during the lecture time in week 4. It will cover the material in Lectures 1 to 3 inclusive.
Due: 29 March
Weighting: 20%
Students are required to complete two assignments as part of the assessment tasks, both of which to be submitted online via the iLearn site.
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 special consideration is made and approved. No submission will be accepted after solutions have been posted.
Due: 10 May
Weighting: 25%
Students are required to complete two assignments as part of the assessment tasks, both of which to be submitted online via the iLearn site.
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 special consideration is made and approved. No submission will be accepted after solutions have been posted.
Due: University Examination Period
Weighting: 50%
The final examination will be a 2.5 hours open-book written paper with ten minutes reading time, held during the University Examination Period.
Classes
For campus students:
For distance students:
Required and Recommended Texts and/or Materials Prescribed
Textbooks:
There is no specific required text for this unit. Detailed lecture materials are provided. However the following books are useful references:
Technology Used and Required
You will be required to use the teaching website, Excel and Word.
Unit Web Page
Course material is available on the learning management system (iLearn). To access the teaching website, go to http://ilearn.mq.edu.au and login using your usual login and password.
Teaching and Learning Activities
Week |
Lecture |
Topics |
1 |
1 |
Basic financial mathematics |
2 |
2 |
Further topics in financial mathematics. Introduction to capital budgeting. |
3 |
3 |
Project cashflows and methods for their estimation. |
4 |
4 |
Elementary methods of forecasting. |
5 |
5 |
Matrix algebra and implementation in excel. |
6 |
6 |
Analysis of leasing decisions. |
7 |
7 |
Project evaluation methods. |
mid-semester study break |
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mid-semester study break |
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8 |
8 |
(i) Methods for estimating model parameters, (ii) Sensitivity and breakeven analysis. |
9 |
9 |
Introduction to options and valuation via the Black Scholes model. |
10 |
10 |
Monte Carlo simulation modelling for stock prices and option valuation. |
11 |
11 |
Binomial option pricing methods and implementation in excel. |
12 |
12 |
Introduction to the real options approach to valuation of projects. |
13 |
13 |
More on real options analysis. |
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Supplementary exams
Information regarding supplementary exams, including dates, is available at: http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
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Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
There may be minor changes to the lecture and tutorial materials. The assessment structure is the same as for last year.
• This unit gives you practice in applying research findings in your assignments.
• This unit gives you opportunities to conduct your own research.