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AFM231 Corporate Finance

Updated: 26 February 2013
Credit Points 6
Offering
Responsible Campus Teaching Period Mode of Study
Armidale Trimester 1 Off Campus
Armidale Trimester 1 On Campus
Armidale Trimester 3 Off Campus
Intensive School(s) None
Supervised Exam There is a UNE Supervised Examination held at the end of the teaching period in which you are enrolled.
Pre-requisites AFM101 or AFM217 or AFM317 and QM161 or STAT100
Co-requisites None
Restrictions None
Notes None
Combined Units None
Coordinator(s) Subba Reddy Yarram (syarram@une.edu.au)
Unit Description

This is an introductory unit in finance at the second-year level. The major topic areas covered are: the finance function and the firm's objectives; compound interest and present values; valuation of securities; risk-return trade-off; the Efficient Market Hypothesis; capital budgeting; cost of capital; capital structure; and dividend policy.
Important Information

Where calculators are permitted in examinations, it must be selected from an approved list, which can be accessed from the Further Information link below.

Further information
Prescribed Material
Mandatory 		Text(s):

Note: Students are expected to purchase prescribed material. Please note that textbook requirements may vary from one teaching period to the next.

Fundamentals of Corporate Finance
ISBN: 9780070284951
Ross, S. and others, McGraw Hill 5th ed. 2010
Note: Connectplus will not be used
Text refers to: Trimester 1 , On and Off Campus
Disclaimer Unit information may be subject to change prior to commencement of the teaching period.
Assessment
Title Exam Length Weight Mode No. Words
Assignment 1 10% On/Off Campus
Assessment Notes
Short answer questions. Word length not applicable due to statistical nature of the questions.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-3 GA: 1-4, 6
Online/In-Class Quiz 1 4% On/Off Campus
Assessment Notes
Online quiz is for Off Campus students. In-class quiz is for On Campus students.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-5 GA: 1-4, 6
Online/In-Class Quiz 2 4% On/Off Campus
Assessment Notes
Online quiz is for Off Campus students. In-class quiz is for On Campus students.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-5 GA: 1-4, 6
Online/In-Class Quiz 3 4% On/Off Campus
Assessment Notes
Online quiz is for Off Campus students. In-class quiz is for On Campus students.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-5 GA: 1-4, 6
Online/In-Class Quiz 4 4% On/Off Campus
Assessment Notes
Online quiz is for Off Campus students. In-class quiz is for On Campus students.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-5 GA: 1-4, 6
Online/In-Class Quiz 5 4% On/Off Campus
Assessment Notes
Online quiz is for Off Campus students. In-class quiz is for On Campus students.
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-5 GA: 1-4, 6
Final Examination 2 hrs 70% On/Off Campus
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-6 GA: 1-4, 6-7

Learning Outcomes (LO) Upon completion of this unit, students will be able to:
  1. demonstrate knowledge of time value principles and their applications;
  2. understand the basics of how secondary and primary markets work and demonstrate knowledge of valuation models used in pricing shares and bonds;
  3. explain the risk return trade off and Capital Asset Pricing Model;
  4. evaluate long-term investment opportunities that maximise shareholder wealth;
  5. understand financing and cost of capital and capital structure decisions made in corporate firms; and
  6. describe payout policies and their determinants in corporate firms.

Graduate Attributes (GA)
Attribute Taught Assessed Practised
1 Knowledge of a Discipline
Knowledge of risk-return trade-off, valuation principles and theory of investments, financing, capital structure and payout policies is taught through lectures, tutorials and the unit materials. It is practised and assessed through the assessments. 		True True True
2 Communication Skills
Familiarity with financial terminology is enhanced through teaching and practise of concepts in Assignment, Quizzes and the Final Examination. 		True True True
3 Global Perspectives
Knowledge of theories as they apply in different institutional settings is taught through lectures, tutorials and the unit materials and practised in Assignment, Quizzes and the Final Examination. 		True True True
4 Information Literacy
Researching relevant current and past information is demonstrated and assessed. 		True True
6 Problem Solving
Tools and techniques relating to time value of money, risk and return trade-offs and valuation of bonds and shares are taught, assessed and practised in all the assessments. 		True True True
7 Social Responsibility
Role of governance issues are taught and assessed in the Final Examination. 		True True
   

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