General Information
Fundamentals of Finance provides a comprehensive introduction to corporate financial management. The subject links the mathematics of finance and discounted cash flows to finance theory, valuation and investment analysis. Portfolio theory is used to provide a foundation for determining the relationship between risk and return which is, in turn, extended into an analysis of capital structure and methods of estimating the firm’s cost of capital. The focus of this subject is on creating shareholder value, with due consideration given to the role of financial management within the broader context of corporate governance.
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Details
Academic unit: Bond Business School Subject code: FINC12-200 Subject title: Fundamentals of Finance Subject level: Undergraduate Semester/Year: January 2018 Credit points: 10.000 -
Delivery & attendance
Timetable: https://bond.edu.au/timetable Delivery mode: Standard Workload items: - Computer Lab: x11 (Total hours: 22) - Laboratory
- Lecture: x12 (Total hours: 24) - Weekly Lecture
- Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: Attendance is essential to participate in discussions, in-class exercises and unannounced quizzes. Students are expected to prepare for class by reading the set material beforehand. There are no make-up tutorial tests, quizzes or assignments. -
Resources
Prescribed resources: Books
- R. Charles Moyer,James R. McGuigan,Ramesh P. Rao (2017). Contemporary Financial Management. 14th, Cengage Learning
Others
- The Texas Instruments BAII Plus or the Texas Instruments BAII Plus Professional is the recommended calculator for this course. Graphic and/or programmable calculators are not allowed. All calculators other than the two models above require prior approval..
iLearn@Bond & Email: iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
Academic unit: | Bond Business School |
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Subject code: | FINC12-200 |
Subject title: | Fundamentals of Finance |
Subject level: | Undergraduate |
Semester/Year: | January 2018 |
Credit points: | 10.000 |
Timetable: | https://bond.edu.au/timetable |
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Delivery mode: | Standard |
Workload items: |
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Attendance and learning activities: | Attendance is essential to participate in discussions, in-class exercises and unannounced quizzes. Students are expected to prepare for class by reading the set material beforehand. There are no make-up tutorial tests, quizzes or assignments. |
Prescribed resources: | Books
Others
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iLearn@Bond & Email: | iLearn@Bond is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student. To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au |
Enrolment requirements
Requisites: |
Pre-requisites:
Co-requisites:There are no co-requisites |
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Assumed knowledge: |
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge. Anti-requisite FINC11-100 - Introduction to Finance |
Restrictions: |
Nil |
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Describe the role and objective of financial management.
- Recognise and apply the time value of money formulae.
- Explain the risk/return tradeoff using examples from Portfolio Theory and the Capital Asset Pricing Model.
- Value bonds and common stocks.
- Apply concepts of cash flow analysis, evaluation techniques and the cost of capital for capital budgeting.
Generative Artificial Intelligence in Assessment
The University acknowledges that Generative Artificial Intelligence (Gen-AI) tools are an important facet of contemporary life. Their use in assessment is considered in line with students’ development of the skills and knowledge which demonstrate learning outcomes and underpin study and career success. Instructions on the use of Gen-AI are given for each assessment task; it is your responsibility to adhere to these instructions.
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Assessment details
Type Task % Timing* Outcomes assessed Paper-based Examination (Closed) Final Examination 45% Final Examination Period 1,2,3,4,5 Paper-based Examination (Closed) Mid-semester Examination (in Week 6) 35% Mid-Semester Examination Period 1,2,3 *In-Class Quiz - Individual Time Value of Money Quiz (in tutorial) 10% Week 4 1,2,3 *Video Assignment Bloomberg Market Concepts Online Course 10% Week 11 1,2,3,4,5 - * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
Pass requirement
In order to achieve a passing grade in this subject, students are required to achieve a satisfactory grade in each piece of assessment.
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Assessment criteria
Assessment criteria
High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment. Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Type | Task | % | Timing* | Outcomes assessed |
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Paper-based Examination (Closed) | Final Examination | 45% | Final Examination Period | 1,2,3,4,5 |
Paper-based Examination (Closed) | Mid-semester Examination (in Week 6) | 35% | Mid-Semester Examination Period | 1,2,3 |
*In-Class Quiz - Individual | Time Value of Money Quiz (in tutorial) | 10% | Week 4 | 1,2,3 |
*Video Assignment | Bloomberg Market Concepts Online Course | 10% | Week 11 | 1,2,3,4,5 |
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
Pass requirement
In order to achieve a passing grade in this subject, students are required to achieve a satisfactory grade in each piece of assessment.
Assessment criteria
High Distinction | 85-100 | Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking. |
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Distinction | 75-84 | Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas. |
Credit | 65-74 | Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above. |
Pass | 50-64 | Usually awarded to students whose performance meets the requirements set for work provided for assessment. |
Fail | 0-49 | Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines. |
Quality assurance
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Study Information
Submission procedures
Students must check the iLearn@Bond subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
Each assessment piece must be completed by the due date as advised in the subject outline.
Academic Integrity
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Bond University utilises Originality Reporting software to inform academic integrity.Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
Accessibility and Inclusion Support
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
Subject curriculum
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Introduction/Financial Markets
MMR Chapters 1-2.
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Financial Mathematics I
MMR Chapter 5.
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Financial Mathematics II
MMR Chapter 5.
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Risk and Return I
MMR Chapter 8.
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Risk and Return II
MMR Chapter 8.
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Pricing Bonds and Preference Shares
MMR Chapter 6.
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Mid-semester Exam
MMR Chapters 1, 2, 5 and 8.
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Pricing Common Equity
MMR Chapter 7.
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Capital Budgeting I
MMR Chapter 9.
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Capital Budgeting II
MMR Chapter 10.
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Cost of Capital
MMR Chapter 12.
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Review and Application of Material Covered
n/a
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Final Exam
MMR Chapters 1, 2, 5, 6, 7, 8, 9, 10 and 12.