AFF5030 - Advanced finance

Leader: Associate Professor Michael Dempsey

Offered

Caulfield First semester 2007 (Evening)

Synopsis

Calculation of NPVs and IRRs; evaluation of the CAPM and APT; estimation of a firm's beta and understanding of the problems involved; estimation of a firm's cost of capital; determination of a firm's capital structure; evaluation of a firm's dividend policy; estimation of a firm's cash flows with ratio analysis of its financial accounts; identification of the risks facing a business; utilisation of futures, options and swaps in managing business risk and in corporate financing.

Objectives

The learning goals associated with this unit are to:

• develop a recognition and understanding of the functioning of markets
• develop an understanding of how financial assets (including derivative products) are arrived at through trading in the market place
• develop a deeper understanding of the nature of firm equity, corporate and government bonds, and derivative products
• develop competences with spread-sheet skills as might be employed by a market analyst
• develop the confidence and ability to work both independently and with colleagues.

Assessment

Assignment: (2000-3000 words): 30%
Examination (3 hours): 70%

Contact hours

3 hours per week

Prohibitions

AFF4030