AFF9250 - Financial management theory

Offered

Caulfield First semester 2009 (Day)
Caulfield First semester 2009 (Evening)
Caulfield Second semester 2009 (Day)
Caulfield Second semester 2009 (Evening)

Synopsis

Topics include review of foundations of finance; financial mathematics and pricing of financial instruments; valuation and the management of long term investment and financial leverage; and theory of capital structure and dividend policy.

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

Within semester assessment: 30%
Examination (3 hours): 70%

Contact hours

3 hours per week

Co-requisites

Students must be enrolled in one of the following courses to undertake this unit:
0028, 0396, 0503, 0504, 0790, 0826, 1445, 1499, 2098, 2619, 3174, 3176, 3177, 3179, 3189, 3822, 3843, 3844.

Prohibitions

AFF9730, AFG9070