Monash University Handbook 2010 Undergraduate - Unit

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:

1. explain the purpose of financial management and corporate finance
2. apply analysis techniques to financial information and interpret the results
3. explain and apply the principles of time value of money to rank investment projects and value stocks and bonds
4. explain and apply, at an introductory level, valuation techniques relating to equity instruments
5. explain and apply techniques in capital investment decisions and
6. apply critical thinking, problem solving and presentation skills to activities dealing with corporate finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFW2780.

Assessment

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

Chief examiner(s)

Duane Moore

Contact hours

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

Prerequisites

AFW1000 or AFW1001 (pre 2009)

Prohibitions

AFW3005