AFC2140

Business finance

(BUS)

Dr Paul Mather

6 points + Two 1-hour lectures and one 1-hour tutorial per week + First and second semesters + Clayton + Prerequisites: Any of the following: (i)AFC1100, or (ii) AFC2100, or (iii) AFC1021 or AFC1022 and AFC1031 or AFC1032, or (iv) by permission. Note: Students attempting AFC2140 without having completed AFC1100 or AFC2100 are advised that they may be seriously disadvantaged.

Synopsis: The impact of financing and investment decisions on business enterprises, with particular focus on public companies. Topics include the goals of the firm and investors, investment evaluation models, valuation of equity and debt instruments, fixed interest securities, sources and types of available finance, issues in risk and return, portfolio theory, asset pricing models, issues in capital structure and dividend policy, and the efficiency of capital markets.

Assessment: Examination (3 hours): 80% + Mid-semester examination (1 hour): 20%