AFC2140 - Corporate finance

Offered

Clayton First semester 2009 (Day)
Clayton Second semester 2009 (Day)

Synopsis

The impact of financing and investment decisions on business enterprises, with particular focus on public companies. Topics include the goals of the firm and investors, investment evaluation models, valuation of equity and debt instruments, fixed interest securities, sources and types of available finance, issues in risk and return, portfolio theory, asset pricing models, issues in capital structure and dividend policy, and the efficiency of capital markets.

Objectives

The learning goals associated with this unit are to:

• evaluate investment options and value equity and debt instruments
• explain portfolio theory and show how the theory can be extended to price risky assets
• estimate the appropriate cost of capital for investment appraisal purposes
• analyse issues determining capital structure and dividend policy
• apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with corporate finance.

Assessment

Within semester assessment: 25%
Examination (3 hours): 75%

Contact hours

Two 1-hour lectures and one 1-hour tutorial per week

Prohibitions

AFF2631, AFW2631, AFW3044