Business Finance

Course aim

To provide students with clear understanding of the decisions taken by firms when raising finance and when undertaking investments. To highlight the inter-action between the firm, shareholders and the economy via the financial market place.

Course content

The financial environment and the role of finance in business: financial objectives of firms, financial mathematics, cash flow, time value of money; financial markets and sources of finance.
Investment evaluation: net present value and other criteria; risk and uncertainty in capital investment decisions.
Capital structure and cost of capital: intermediate and long term funding; debt valuation; equity models, dividend valuation, capital asset pricing model; weighted average cost of capital; theoretical debate on capital structure and the value of the firm.
Dividend policy: comparison of different payout policies and the effect of dividend payments or retention on the value of the firm.

Textbook(s)

Petty, J.W. et al 2012, Financial Management: Principles and Applications, 6th Edition, Pearson Australia, Frenchs Forest, NSW

Prerequisite(s)

Students who are required to study BANK 2005 Finance and Investment in their degree must NOT enrol in BANK 2007 Business Finance.

Corequisite(s)

Nil

Teaching method

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment 1 - Individual quantitative assignment , Assignment 2 - Individual quantitative assignment , Examination

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 3)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
Non-award tuition fees are set by the university. To determine the cost of this course, go to:
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Not all courses are available on all of the above bases, and students must check to ensure that they are permitted to enrol in a particular course.

* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.