AFW2780 - Corporate finance A

Leader: Mr Jean Struweg

Offered

South Africa Second semester 2007 (Day)

Synopsis

An introduction to the principles of corporate finance. The unit addresses the following fundamental areas of finance: An introduction to corporate finance and financial management; an introduction to working with financial statements; the principles of time value of money and valuation of future cash flows and an introduction to capital budgeting principles and its relationship with the future cash flow valuation.

Objectives

The learning objectives of this unit are to:

• apply the time value of money to rank investment projects and value stocks and bonds;
• explain the relationship between return and risk and the capital asset pricing model;
• measure a firm?s cost of capital and explain dividend policy;
• explain the concept of market efficiency and how it can be tested;
• apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with corporate finance.

Assessment

Assignment (2,000 words): 20%
Test: 20%
Examination (3 hours): 60%.

Contact hours

One 2-hour lecture and one 1-hour tutorial

Prerequisites

AFW1001