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
Organisational Unit
Department of Banking and Finance
Unit guides
Synopsis
The aim of the 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 with 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 BFC2140.
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.
See also Unit timetable information
Chief examiner(s)
Prerequisites
Students to complete two units as follows: ECF1100 and ETF1100; or ECC1000 and ETC1000; or ETB1100 and ECB1101; or ECW1101 and ETW1000 or ETW1102; or ECP1100 and ETP1100.