AFF5250 - Corporate treasury management

Offered

Caulfield First semester 2008 (Day)
Caulfield First semester 2008 (Evening)
Caulfield Second semester 2008 (Day)
Caulfield Second semester 2008 (Evening)

Synopsis

Topics include objectives, role, and functions of corporate treasury; its structure, ethics, policies; banking interface; treasury performance evaluation; links to corporate strategy; physical and derivative financial markets and instruments; short term and long term financial planning and forecasting; working capital management and forecasting; evaluation, management and business risks of investment opportunities; dividend policy; funding alternatives; financial risk assessment and management including interest rate risk; foreign exchange risk, credit risk and credit ratings; international financial markets and issues, treasury management systems, and recent trends in treasury management.

Objectives

The learning goals associated with this unit are to:

• describe the objectives, role and functions of corporate treasury management; its structure, ethics and policies; its interface with bank systems; the capital markets and physical and derivative instruments that it deals in, including international markets and international trade; recent trends in treasury management; and the major elements of managing the treasury function itself, including treasury management systems and treasury performance evaluation
• explain the link between corporate strategy and treasury operations, and develop a basic corporate strategy linked to a long term financial plan and forecast
• complete financial analyses of a firm, including developing a short term financial plan and forecast, and recommending improvements in the management of liquidity and working capital; evaluating investment opportunities including business risks and project management risks; determining the capital structure of a firm and making financing decisions in the light of this structure; and determining an appropriate dividend policy for a firm in the context of its investment opportunities
• describe the management principles for managing and hedging liquidity risk, interest rate risk, foreign exchange risk, and credit risk (including the use of credit ratings)
• develop basic teamwork and project management skills; written communication skills, and presentation skills.

Assessment

Within semester assessment: 50%
Examination (3 hours): 50%

Contact hours

3 hours per week

Co-requisites

Students must be enrolled in MApplFin, MBus(Bkg&Fin) or MBA/MApplFin to undertake this unit.

Prohibitions

AFF4200