Corporate Financial Policy

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

Entry into the Master of Accounting

OR

completion of FNCE90060 Financial Management

None

None

None

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

This subject extends the analysis of capital budgeting, capital structure, dividend policy and corporate risk management provided in 333-641 Financial Management or 333-692 Financial Decision Making. Topics include the effect of the dividend imputation system of taxation on dividend policy, capital structure and capital budgeting; a comprehensive analysis of corporate structure and capital budgeting; a comprehensive analysis of corporate acquisitions and restructuring; a detailed examination of alternative funding mechanisms including leases; and a discussion of current issues in Australia corporate finance.

On successful completion of this subject students should be able to:

• Recognise the issues pertinent to a firm in making decisions about dividend policy;
• Analyse leasing as a funding alternative;
• Explain the funding alternatives available to firms;
• Discuss the impact of taxes, bankruptcy costs, agency costs and information asymmetries upon the funding decision;
• Apply complex techniques to capital budgeting decisions in order to account for projects with different lives;
• Evaluate the economic consequences of takeover activity.

• 2 x 1hr in-semester examinations (each worth 20%), held between Weeks 4-6 and 8-10 (40%)
• 3hr end-of semester examination (60%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Collaborative learning
• Problem solving
• Team work
• Statistical reasoning
• Application of theory to practice
• Interpretation and analysis
• Critical thinking
• Synthesis of data and other information
• Evaluation of data and other information
• Using computer software
• Accessing data and other information from a range of sources