Financial Management

Subject BUSA90094 (2014)

Note: This is an archived Handbook entry from 2014.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2014:

November, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: 30 hours
Total Time Commitment: Not available
Prerequisites: None
Corequisites: None
Recommended Background Knowledge: None
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Contact

programservices@mbs.edu

Subject Overview:

This course is an introduction to the theory and practice of finance. The unifying theme of this subject is value:

  • How to value financial assets such as bonds and shares;
  • How to value (today) the (future) cash flows from the investment projects that firms undertake;
  • How to choose projects that increase the value of the firm to shareholders; and
  • How to finance those projects so that shareholder value is maximised.

Lectures and cases will introduce discounting and interest rate mathematics, principles of valuation, the weighted average cost of capital, and capital structure of firms. Along the way we will develop knowledge and intuition about the purpose of the different components of the financial systems (financial markets, financial intermediaries and financial instruments) and how those components create value
Learning Outcomes:

At the conclusion of the subject, students should understand the following concepts:

  • Time value of money and discounted cash flow approach to valuing projects, shares, bonds, and enterprises;
  • The basic functioning and purpose of capital markets (markets for stocks, bonds and other securities);
  • The effects of information asymmetry in the financial system;
  • Diversification and transfer of risk;
  • The capital structure problem and cash payout choices faced by corporations; and
  • How firms use weighted average cost of capital in choosing projects
Assessment:
  • 3 x syndicate case reports (10%)
    • Throughout subject
  • 4 homework sets (12.5%)
    • Throughout subject
  • Test 1 (10%)
    • 30 minutes
  • Test 2 (17.5%)
    • 45 minutes
  • Final examination (50%)
    • 90 minutes
    • Hurdle Requirement
    • End of subject
Prescribed Texts: None
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Related Course(s): Master of Business Administration

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