AFF9250 - Financial management theory

Leader: Dr Mohammad Hoque

Offered

Caulfield First semester 2007 (Day)
Caulfield First semester 2007 (Evening)
Caulfield Second semester 2007 (Day)
Caulfield Second semester 2007 (Evening)

Synopsis

Topics include introduction to financial statements; financial mathematics and pricing of financial instruments; review of foundations of finance; concepts and models for working capital; financial leverage and theory of capital structure; evaluation of major projects.

Objectives

The learning goals associated with this unit are to:

• become skilled in understanding why wealth maximisation is an appropriate goal and to further understand the issues surrounding agency relationships
• acquire relevant knowledge of portfolio theory to be able to calculate portfolio returns and risk and become skilled in the application of the Capital Asset Pricing Model to the valuation of shares
• become skilled in the application of various capital budgeting techniques which enable financial managers to evaluate investment proposals
• develop a set of academic skills which include the ability to work independently, to utilize library resources (e.g. text books, academic journals etc) to search the web and to submit assignments on time
• develop excellent oral and written communication skills to be able to work independently and to lead / participate in groups from diverse cultural and social backgrounds.

Assessment

Assignment: 30%
Examination (3 hours): 70%

Contact hours

3 hours per week