6 points, SCA Band 3, 0.125 EFTSL
Postgraduate - Unit
Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.
- First semester 2018 (Evening)
- Second semester 2018 (On-campus)
Students must have passedor BFF5925. No pre-requisite for students enrolled in B6004, B6003, 0504, 3818, 3850, 4412 or 4435.
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:
- design corporate treasury as a strategic business unit with clear structure, roles, functions and control systems
- design a risk management framework that reflects the risk appetite of the firm
- design risk management strategies including hedging techniques for commodity, interest rate and foreign exchange risk management
- design sensitivity analysis, scenario analysis, stress testing approaches and apply real option analysis to assist corporate treasurers to analyse investment projects
- design structured and option embedded debt and equity products with emphasis on pricing and market considerations
- appraise empirical approaches to net working capital management and liquidity management and the treasurer's role in managing profit-risk trade-off
- debate empirical estimation of 'optimal' capital structure and the treasurer's role in optimising debt-equity mix using both short and long term funding
- debate Australia's dividend imputation tax system and its implications for corporate treasury goals and operations
- evaluate treasury management systems and other decision support systems
- 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