BFF5250 - Corporate treasury management - 2017

This unit covers five pillars of corporate treasury management:

• corporate finance (financing, investment, dividend payout)
• debt and equity markets and product design
• liquidity/net working capital management
• risk transfer, retention and management (exchange rate risk, interest rate risk, credit risk, and loan concentration risk)
• managing corporate treasury as a strategic unit.

The learning goals associated with this unit are to:

1. design corporate treasury as a strategic business unit with clear structure, roles, functions and control systems
2. design a risk management framework that reflects the risk appetite of the firm
3. design risk management strategies including hedging techniques for commodity, interest rate and foreign exchange risk management
4. design sensitivity analysis, scenario analysis, stress testing approaches and apply real option analysis to assist corporate treasurers to analyse investment projects
5. design structured and option embedded debt and equity products with emphasis on pricing and market considerations
6. appraise empirical approaches to net working capital management and liquidity management and the treasurer's role in managing profit-risk trade-off
7. debate empirical estimation of 'optimal' capital structure and the treasurer's role in optimising debt-equity mix using both short and long term funding
8. debate Australia's dividend imputation tax system and its implications for corporate treasury goals and operations
9. evaluate treasury management systems and other decision support systems
10. apply critical thinking, problem solving and presentation skills to individual and / or group activities dealing with corporate treasury management and demonstrate in both individual and group summative assessment tasks the acquisition of a comprehensive understanding of the topics covered by BFF5250.

Within semester assessment: 50% + Examination: 50%

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

Professor Christine Brown

Students must be enrolled in course 0504, 2619, 3189, 3818, 3850, 4412 or 4435 to undertake this unit.

AFF5250