Corporate finance
Associate Professor Stephen Easton and Dr Robert Faff
6 points * One 3-hour session per week * Second, summer semester * Clayton, city
Synopsis The aim of this subject is to provide an introduction to corporate financial theory and the application of theory to problems relevant to financial managers. The subject will cover the following topics: corporate objectives and investor objectives; investment project evaluation; sources of finance, including financial instruments and markets; investment decisions under risk; efficient capital markets; capital structure and financing decisions including dividend policy; and the imputation system and the cost of capital.
Assessment Examination (3 hours): 80% * Mid-semester (test 1 hour) : 20%
Prescribed texts
Bishop S and others Corporate finance 3rd edn, Holt Rinehart and Winston, 1993
Peirson C G and others Business finance 6th edn, McGraw-Hill, 1994