Unit convenor and teaching staff |
Unit convenor and teaching staff
Coordinator
Keith Woodward
See ilearn
Lecturer
Farida Akhtar
See ilearn
Angela Chow
|
---|---|
Credit points |
Credit points
4
|
Prerequisites |
Prerequisites
Admission to MAccg or MAccg(Adv) or MAcc(Prof)MCom or MActPrac or MBkgFin or MBioBus or MCom or MEc or MIntBus or MIntBusMIntComm or MIntBusMIntRel
|
Corequisites |
Corequisites
|
Co-badged status |
Co-badged status
|
Unit description |
Unit description
This unit aims to provide students with a knowledge and understanding of the principles and techniques underlying theory and practice in corporate finance.
Topics include:
- basic financial mathematics: interest rates, present values, future values, annuities, perpetuities;
- valuation and analysis of debt and equity securities;
- methods for investment evaluation and capital budgeting: NPV, IRR, PP;
- financial markets and raising finance by issuing new securities;
- risk and return, and the cost of capital;
- capital structure and dividend policy;
- derivative securities: forward, futures and option contracts, and applications to corporate finance;
- corporate liabilities and international finance; and
- introduction to risk management.
|
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:
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 tasks (not including the final exam mark) will not be addressed.
Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Self-assessment test | 0% | No | Week 3 |
Lecture test | 10% | No | Week 4 |
Assignment | 15% | No | Week 8 |
Tutorial test | 15% | No | Week 9 |
Final exam | 60% | No | University Examination Period |
Due: Week 3
Weighting: 0%
Please use the self-assessment test as an indicator of whether you're progressing satisfactorily in the unit. If you are having difficulties, please discuss your progress with your teacher and consider withdrawing before the Census date - 26 August 2018.
Due: Week 4
Weighting: 10%
This 1 hour paper-based test will be conducted in lectures. Further details and any changes will be announced on iLearn.
Extension
No extensions will be granted. Students who have not sat the exam will be awarded a mark of 0 for the task, except for cases in which an application for Special Consideration is made and approved.
Due: Week 8
Weighting: 15%
Answer a series of analytical questions.
Submission:
Submissions should be made online via iLearn's Turnitin link. Excel spreadsheet solutions may also require submission electronically via iLearn. Evidence of extensive research using academic and financial press references, quotes and current data is required.
Extension
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: Week 9
Weighting: 15%
This 1 hour computer-based test will be conducted in tutorials. Further details and any changes will be announced on iLearn.
Extension
No extensions will be granted. Students who have not sat the exam will be awarded a mark of 0 for the task, except for cases in which an application for Special Consideration is made and approved.
Due: University Examination Period
Weighting: 60%
This will be a 2 hour invigilated exam conducted during the University Examination Period. Note that this will not be an online exam.
Extension
No extensions will be granted. Students who have not sat the exam will be awarded a mark of 0 for the task, except for cases in which an application for Special Consideration is made and approved.
The tutorials in particular are important so that you become familiar with MS Excel spreadsheet software which will be assessed in the computer-based tutorial test in addition to the other tests and assignments.
The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
All lecture content and tutorial exercises and solutions will be available on iLearn.
There are no prizes for this unit.
The textbook for this unit is "Fundamentals of Corporate Finance" by Parrino et al (ISBN 9780730305422). An electronic version of the book is available from Wiley Direct and is cheaper than the paper version. This book covers most but not all of the topics in the unit. The lecture notes will also cover what you need to know. Additional readings may be assigned for the various topics each week. This will either be journal articles, or other materials available on the web or available electronically e.g. via the Macquarie University Library.
Reference Books:
Berk, J and Demarzo, P. Corporate Finance, Pearson (ISBN 9780273756033)
Beninga Principles of Finance with Excel, Oxford (ISBN 978 0 19 975547 9) This book may be used by students to learn about using MS Excel for the various financial calculations involved in the course, during the tutorial / computer lab sessions.
Copeland, Weston and Shastri, Financial Theory and Corporate Policy 4th Edition, Pearson (ISBN 0-321-22353-5)
Grinblatt and Titman, Financial Markets and Corporate Strategy 2nd Edition, McGraw-Hill (ISBN 0-07-229433-7)
Hull, Options, Futures and Other Derivatives 8th Edition, Prentice Hall
Students will require access to the internet to download lecture slides and tutorial solutions.
The assignment and most tutorial exercises will require the use of word processing and spreadsheet programs.
In most weeks we will be using spreadsheets for the various financial calculations needed. Our classes are held in a computer laboratory and all students will have access to a computer with the required software installed on it.
Students will be instructed in how to use MS Excel for the purposes of the unit.
Students may wish to bring a headset to class so they can view and listen to the mp4 video files of lectures, tutorials and excel demonstrations.
Course material is available on the learning management system (iLearn)
Week |
Date (Monday) |
Topic |
1 |
30.7.18 |
Business organisations, taxation and financial statements. Tutorials run in first week. |
2 |
6.8.18 |
Time value of money and interest rates. |
3 |
13.8.18 |
Valuation of multi-payment cash flows. Self-assessment online test (0%). |
4 |
20.8.18 |
Lecture test (10%). |
5 |
27.8.18 |
Amortising loans and valuation of fixed income bonds. Census date 26 August 2018. |
6 |
3.9.18 |
Valuation of shares and raising new capital. |
7 |
10.9.18 |
Capital budgeting - project evaluation methods. |
Break |
|
Mid-semester break from Monday 17.9.18 to Friday 28.9.18. |
8 |
1.10.18 |
Term structure of interest rates and corporate bonds. Assignment due (15%). |
9 |
8.10.18 |
Statistical concepts and risk. Tutorial test (15%). |
10 |
15.10.18 |
Trade-off between risk and return. |
11 |
22.10.18 |
Cost of capital and capital structure. |
12 |
29.10.18 |
Dividend policy and company valuation. |
13 |
5.11.18 |
Revision |
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:
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).
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 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:
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
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.
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:
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:
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:
We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.
This graduate capability is supported by:
The capital budgeting topic has been timetabled a little earlier to make for more interesting assessments.