AFC9020

Corporate finance

Mr Howard Chan

One 3-hour session per week · Second semester · Clayton

Objectives On completion of this subject students should be able to evaluate the investment, financing and dividend decisions of the firm; have a basic competence in financial mathematics; be familiar with the fundamentals of capital budgeting as applied to the investment decision; have a basic understanding of the theory of the pricing of risky assets; be able to identify the basic instruments of corporate funding; and have an understanding of the issues underlying capital structure theory.

Synopsis The objective of the subject is to provide an introduction to corporate financial theory and the application of theory to problems relevant to financial managers. The subject will consider 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% · Examination (1 hour): 20%

Prescribed texts

Peirson G and others Business finance 7th edn, McGraw-Hill, 1997

Back to the 1999 Business and Economics Handbook