This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

BFF2140 - Corporate finance 1

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Faculty

Business and Economics

Organisational Unit

Department of Banking and Finance

Offered

Caulfield

First semester 2016 (Day)
Second semester 2016 (Day)
Summer semester A 2016 (On-campus block of classes)

City (Melbourne)

Trimester B 2016 (Day)
Trimester C 2016 (Day)

Synopsis

The aim of this unit is to introduce students to the theory and application of why and how value enhancing corporate financial decisions are made and implemented. With the emphasis on publicly listed companies, topics covered include; the corporate objective of management; investment evaluation models; valuation of equity and debt instruments; sources and types of funding; issues in risk and return; portfolio theory; asset pricing models; issues in capital structure and dividend policy; and the efficiency of capital markets. The unit is designed to ensure students gain the necessary skill set for making value-changing financial decisions to maximise firm value.

Outcomes

The learning goals associated with this unit are to:

evaluate investment options and value of 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, and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF2140.

Assessment

Within semester assessment: 50%
Examination: 50%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Chief examiner(s)

Dr John Watson

Prerequisites

Students to complete two units as follows: ECF1100 and ETF1100 or ECC1000 and ETC1000 or ETB1100 and ECW1101 or ECW1101 and ETW1000.

Prohibitions

AFF2631, BFF2631, BFG2631, BFP2631, BFW2631, AFF2140, BFB2140, BFC2140, BFW2140.