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AFM231 Corporate Finance

Updated: 08 March 2012
Credit Points 6
Offering
Responsible Campus Teaching Period Mode of Study
Armidale Summer Semester Off Campus
Armidale Trimester 1 Off Campus
Armidale Trimester 1 On Campus
Armidale Trimester 3 Off Campus
Intensive School(s)
Start Finish Attendance Notes
N/A N/A Non-Mandatory The Non-Mandatory Intensive School has been cancelled.
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.
Prescribed Material
Mandatory 		Text(s):

Note: Students are expected to purchase prescribed material

Fundamentals of Corporate Finance and Connect Plus
ISBN: 9780071012287
Ross, S., Christensen, M., Thompson, S., Westerfield, R. and Jordon, B., McGraw-Hill 5th ed. 2010
Text refers to: Summer Semester and 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 15% On/Off Campus 3000
Relates to Learning Outcomes (LO) and Graduate Attributes (GA)
LO: 1-3 GA: 1-4, 6
Online Assessment 15% On/Off Campus
Assessment Notes
Online mid-term examination
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: 1-7

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;
  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 improved through teaching and practise of concepts in Assignment 1, OnlineTest 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 1, Online Test 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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