AFW2780 - Corporate finance A

Offered

South Africa Second semester 2009 (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; interest rates and bond valuations, net present value and investment criteria; an introduction to capital budgeting principles and its relationship with the future cash flow valuation and project analysis and evaluation.

Objectives

The learning goals associated with this unit are to:

• explain the purpose of financial management and corporate finance
• apply analysis techniques to financial information and interpret the results
• explain and apply the principles of time value of money to rank investment projects and value stocks and bonds
• explain and apply, at an introductory level, valuation techniques relating to equity instruments
• explain and apply techniques in capital investment decisions and
• apply critical thinking, problem solving and presentation skills to activities dealing with corporate finance.

Assessment

Within semester assessment: 40%
Examination (3 hours): 60%.

Contact hours

One 2-hour lecture and one 1-hour tutorial per week

Prerequisites

AFW1000 or AFW1001 (pre 2009)

Prohibitions

AFW3005