Overview
This unit covers the basic concepts, tools and techniques that financial managers use to maximise shareholder wealth. The main financial decisions that will be covered include investment, financing and dividends using practical applications. Within these three main financial decision-making areas, the unit defines the goal of the firm, discusses how investments are evaluated, how sources and the mix of capital are determined and how the retention and distribution of earnings is reached.
Details
Pre-requisites or Co-requisites
ECON11026 and either MATH11246 or STAT11048
Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).
Offerings For Term 1 - 2017
Attendance Requirements
All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).
Recommended Student Time Commitment
Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.
Class Timetable
Assessment Overview
Assessment Grading
This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.
All University policies are available on the CQUniversity Policy site.
You may wish to view these policies:
- Grades and Results Policy
- Assessment Policy and Procedure (Higher Education Coursework)
- Review of Grade Procedure
- Student Academic Integrity Policy and Procedure
- Monitoring Academic Progress (MAP) Policy and Procedure – Domestic Students
- Monitoring Academic Progress (MAP) Policy and Procedure – International Students
- Student Refund and Credit Balance Policy and Procedure
- Student Feedback – Compliments and Complaints Policy and Procedure
- Information and Communications Technology Acceptable Use Policy and Procedure
This list is not an exhaustive list of all University policies. The full list of University policies are available on the CQUniversity Policy site.
Feedback, Recommendations and Responses
Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.
Feedback from Student
More supports on maths needed.
Additional resources are to be included to cover the basic maths prerequisite to this course.
Substantial changes in resources has been undertaken from Term 3/2016.
Feedback from Student and Self
A study guide will help and more support in general will benefit Flex students.
A revision of all slides will be undertaken so that the students are provided specific directions on the contents. The course already entails collaborate sessions, and this will be continued.
The lecture slides have been substantially altered and augmented from Term 3/2016, already resulting in significantly higher satisfaction score.
Feedback from Student
Exam advice can be more specific.
The structure of the exam is to be communicated more specifically early from the semester to enable the students prepare better.
This action has also been undertaken, especially by providing much detailed exam advice in the recent semesters.
Feedback from Self and Student
An updating of course materials may be conducted.
A change of the textbook and/or the inclusion of more supportive resources to guide the reading of the current textbook will be considered over the next 12 months. Additionally, a software, which interactively trains some of the concepts in this course, is currently being developed and is to be introduced into the course. This will expectantly increase the interestingness of the course and reduce the cognitive load linked to the course.
Although the book has not been changed, substantial extra supporting resources have been developed, and arguably the target of reduced cognitive load and increased interests about the unit have been achieved.
- discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
- apply financial mathematics for the valuation of corporations and other financial decision making
- make investment decisions using sound capital budgeting techniques
- analyse risk and return for financial decision making
- discuss the pricing of shares, bonds and the role of efficient markets.
Alignment of Assessment Tasks to Learning Outcomes
| Assessment Tasks | Learning Outcomes | ||||
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| 1 - Practical Assessment - 10% | |||||
| 2 - Practical and Written Assessment - 20% | |||||
| 3 - Online Quiz(zes) - 10% | |||||
| 4 - Examination - 60% | |||||
Alignment of Graduate Attributes to Learning Outcomes
| Graduate Attributes | Learning Outcomes | ||||
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| 1 - Communication | |||||
| 2 - Problem Solving | |||||
| 3 - Critical Thinking | |||||
| 4 - Information Literacy | |||||
| 5 - Team Work | |||||
| 6 - Information Technology Competence | |||||
| 7 - Cross Cultural Competence | |||||
| 8 - Ethical practice | |||||
| 9 - Social Innovation | |||||
| 10 - Aboriginal and Torres Strait Islander Cultures | |||||
Alignment of Assessment Tasks to Graduate Attributes
| Assessment Tasks | Graduate Attributes | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| 1 - Practical Assessment - 10% | ||||||||||
| 2 - Practical and Written Assessment - 20% | ||||||||||
| 3 - Online Quiz(zes) - 10% | ||||||||||
| 4 - Examination - 60% | ||||||||||
Textbooks
Fundamentals of Corporate Finance
Edition: 2nd Australasian edn (2014)
Authors: R. Parrino, D. Kidwell, A. Yong, Dempsey, Morkel-Kingsbury, Ekanayake, Kofoed, Murray
John Wiley and Sons
Milton Milton , Qld , Australia
Binding: Hardcover
Additional Textbook Information
E-book version may be used as an alternative to the hard copy.
May involve the use and installation of a customized software. Further details will be advised later.
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
- Different online resources indicated on Moodle.
- MathType or other Equation Editor
- MS Office (Word, Excel, PowerPoint)
All submissions for this unit must use the referencing style: American Psychological Association 6th Edition (APA 6th edition)
For further information, see the Assessment Tasks.
t.imam@cqu.edu.au
Module/Topic
Introduction to finance and Time Value of Money
Chapter
1 & 5(Partial)
Events and Submissions/Topic
Module/Topic
Cash flow and valuation
Chapter
5(Partial) & 6(Partial)
Events and Submissions/Topic
Module/Topic
Risk and return
Chapter
7
Events and Submissions/Topic
Module/Topic
Bond valuation
Chapter
6(Partial) & 8
Events and Submissions/Topic
Module/Topic
Share valuation
Chapter
6(Partial) & 9
Events and Submissions/Topic
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Capital budgeting basics
Chapter
10
Events and Submissions/Topic
Module/Topic
Cash flow and capital budgeting
Chapter
11 & 12
Events and Submissions/Topic
Module/Topic
Cost of capital
Chapter
13
Events and Submissions/Topic
Module/Topic
Raising capital
Chapter
15
Events and Submissions/Topic
Module/Topic
Capital structure policy
Chapter
16
Events and Submissions/Topic
Module/Topic
Dividends and dividend policy
Chapter
17
Events and Submissions/Topic
Module/Topic
Revision
Chapter
All
Events and Submissions/Topic
Module/Topic
Chapter
Events and Submissions/Topic
Module/Topic
Chapter
Events and Submissions/Topic
This unit entails some basic mathematical knowledge including equation rearrangement to solve for unknown variables, calculation of powers and logarithm, and the basic calculator usage to determine values of mathematical expressions. Some resources on these basic concepts are provided on Moodle, and it is recommended to note these resources in case of any confusion regarding these concepts.
1 Practical Assessment
This assessment item consists of a set of questions and problems, based on weeks 1 to 4 inclusive. You are to respond to the questions and upload your submission as a doc/docx/rtf format through Moodle. Please note that you are encouraged to employ cloud services to store your documents while you prepare the assessment; though the final submission has to be made through the assessment submission link on Moodle. The assessment is targeted mainly at evaluating your knowledge upon the relevant topics and practical application of the knowledge.
Further details and the questions you need to answer will be provided within the Assessment block in Moodle by Week 1 Friday.
This is an assessment to be addressed individually.
The assessment is to be typed; and you are to show any relevant formula and calculation steps. You can show your calculations through an Equation Editor, MathType or similar tools. You can also use financial calculator. If you use the financial calculator, you need to show the formula and figures in the formula as well as the financial calculator steps. In addition, you should state the Brand and Model number of the calculator used on the title page.
Please do not round until the final answer is reached and then show answers to two decimal places. If the answer is a percentage, convert from decimal format to percentage up to two decimal places.
Week 5 Friday (7 Apr 2017) 11:45 pm AEST
Week 7 Friday (28 Apr 2017)
Further information will be advised on Moodle
This assessment item assesses your ability to solve finance problems based on the content covered in weeks 1 to 4 inclusive. Further, your ability to extract information from online resources and assess the information through the topics learnt in the unit is also judged. Full marks for each of the questions are indicated within the relevant document on Moodle. For math problems, the response needs to show formula and calculation steps, and the response will be judged both upon showing these steps and the final answer derived. For discussion and other questions, depending upon the mark allocated and question requirement highlighted on Moodle, the response will be judged in terms of quality, appropriate referencing, and presentations.
- discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
- apply financial mathematics for the valuation of corporations and other financial decision making
- analyse risk and return for financial decision making
- discuss the pricing of shares, bonds and the role of efficient markets.
- Problem Solving
- Critical Thinking
- Information Technology Competence
2 Practical and Written Assessment
This assessment item is to be completed individually. You are required to complete a set of mathematical problems, and associated discussion questions and case studies (real world scenario, or hypothetical or virtual world scenario), outlined on Moodle. The contents will be based on weeks 1-5 (inclusive). While assessment 1 covers the basic knowledge, this assessment aims at both judging your competence in respect to the theories and problems encountered and making you familiar with the practical applications of these concepts in processing real world information.
Calculations can be illustrated using an Equation Editor, MathType or financial calculator steps. If you use the financial calculator, you must show the formula and figures in the formula as well as the financial calculator steps.
You may also be required to use Microsoft Excel or similar software for assessment questions. Further, the assessment may involve extracting real world information from online resources.
The explanations in discussion questions should be aimed at one brief paragraph to multiple paragraphs depending upon the question.
If you use sources to support your decisions, you must use in-text referencing to properly acknowledge the work of the original author. However, you are not expected to reference the formulae.
Further details, including the questions to be answered, will be provided within the Assessment block in Moodle by Week 5 Monday.
Also, you are to submit as a doc/docx/rtf format. Please note that you are encouraged to employ cloud services to store your documents while you prepare the assessment; though the final submission has to be made through the assessment submission link on Moodle.
Week 8 Friday (5 May 2017) 11:45 pm AEST
Week 11 Tuesday (23 May 2017)
Further return information, including any potential slightly earlier return date, will be advised on Moodle.
Your performance will be based on your ability to solve complex finance problems, which will provide evidence of your critical thinking and problem solving skills using both formula/financial calculator and Microsoft Excel; and it will also judge your ability to use real world online resources. Marks will be allocated for this assignment for meeting the following requirements:
- Completeness of submitted assignment – all required parts submitted
- Accuracy of the calculations and explanations
- Presentation: clearly and neatly labelled answers to each question; no spelling, typing or grammatical errors; and appropriately referenced if required.
- References to proper sources in the case of discussions
- Model construction (if any) using Microsoft Excel
More details are on Moodle.
Note: Ensure you show the formulae, figures inserted into the formulae and then your calculation steps used (either financial calculator steps or further steps using the equation). Answers need to be shown appropriately e.g. if a percentage you can show up to two decimal places such as 12.25%; if $ and cents then you can show as $50,000.18 (2 decimal places only).
- discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
- apply financial mathematics for the valuation of corporations and other financial decision making
- make investment decisions using sound capital budgeting techniques
- analyse risk and return for financial decision making
- discuss the pricing of shares, bonds and the role of efficient markets.
- Problem Solving
- Critical Thinking
- Team Work
- Information Technology Competence
3 Online Quiz(zes)
Complete an online quiz within the assessment block in Moodle. The quiz will consist of 15 questions relating to Chapters 10 to 13, and 15-16 from your prescribed textbook (covering weeks 6 to 10 contents). The quiz will contain both multiple choice and true-false questions. You have been allocated 65 minutes to complete this online quiz.
You will not be able to re-open the quiz after this date. Therefore it is your responsibility to complete the quiz within the specified time period. If you experience a computer transmission problem you cannot resolve, you are required to contact the unit coordinator by email (the online system records your attempt on the quiz) at the earliest.
1
Week 12 Monday (29 May 2017) 11:45 am AEST
Available from 9:00 am Friday 19 May 2017 to 11:45 am Monday 29 May 2017 only (AEST)
Week 12 Tuesday (30 May 2017)
Your online quiz results will be automatically generated and will be displayed upon completion of the quiz. You can access your results again on the course website via the Gradebook. You will have access to your completed quiz to check the questions you got wrong after the quiz closes..
Students will be assessed on their problem-solving and critical thinking skills, demonstrated by their performance on the online quiz. The nature of this assessment item indirectly assesses your information technology competence.
- discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
- apply financial mathematics for the valuation of corporations and other financial decision making
- make investment decisions using sound capital budgeting techniques
- analyse risk and return for financial decision making
- discuss the pricing of shares, bonds and the role of efficient markets.
- Problem Solving
- Critical Thinking
- Information Technology Competence
Examination
Dictionary - non-electronic, concise, direct translation only (dictionary must not contain any notes or comments).
As a CQUniversity student you are expected to act honestly in all aspects of your academic work.
Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.
When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.
Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.
As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.
What is a breach of academic integrity?
A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.
Why is academic integrity important?
A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.
Where can I get assistance?
For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.
What can you do to act with integrity?
