AFW3005 - Corporate finance

Leader: Mr Jean Struweg

Offered

South Africa First semester 2007 (Day)

Synopsis

Time value of money, Cost of capital, Capital investment, Financing, Analysis and interpretation of financial statements, Valuation of business enterprises and securities, Reorganisations, Reconstructions, Mergers, Conversions, and Liquidations.

Objectives

The learning objectives of this unit are to:

• apply the concept of the time value of money and other project evaluation techniques;
• explain and apply portfolio theory, the capital asset pricing model and theory of mergers and acquisitions;
• measure a firm''s cost of capital;
• describe dividend policy and its relevance to the value of a firm;
• apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with financial management.

Assessment

Assignment (up to 3000 words): 15%
Mid-semester test 15%
Examination (3 hours): 70%

Contact hours

One 2-hour lecture and one 1-hour tutorial

Prerequisites

AFW2042