FINC11-101: Fundamentals of Finance

Description

This subject introduces the analytical approaches used by managers when making financial decisions. The theory and application of fundamental concepts of time value of money, the relationship between risk and return (i.e., CAPM), portfolio theory of investment (i.e., diversification), and capital structure are examined in detail. Students will apply these concepts and assorted financial tools to value stocks and bonds, estimate the cost of capital and implement the discounted cashflow technique to make capital budgeting decisions. Students will also gain exposure to real-time market data via the Bloomberg database.

Subject details

Type: Undergraduate Subject
Code: FINC11-101
EFTSL: 0.125
Faculty: Bond Business School
Semesters offered:
  • January 2024 [Standard Offering]
  • May 2024 [Standard Offering]
  • September 2024 [Standard Offering]
  • January 2025 [Standard Offering]
Credit: 10
Study areas:
  • Business, Commerce, and Entrepreneurship
Subject fees:
  • Commencing in 2023: $4,050.00
  • Commencing in 2024: $4,260.00
  • Commencing in 2025: $4,460.00
  • Commencing in 2023: $5,400.00
  • Commencing in 2024: $5,730.00
  • Commencing in 2025: $5,990.00

Learning outcomes

  1. Explain the key issues faced by corporate financial managers and the analytical approaches required to resolve these issues to maximise firm value.
  2. Apply time value of money concepts using formulae and financial calculators to value bonds and common stocks.
  3. Explain the risk/return trade-off using examples from Portfolio Theory, the Capital Asset Pricing Model and the relationship between a firm and the capital markets.
  4. Demonstrate competence in the use of a Bloomberg terminal to interpret market data, economic indicators and other financial research.
  5. Apply concepts of cash flow analysis, evaluation techniques and the cost of capital to make a sound capital budgeting decision.

Enrolment requirements

Requisites:

Nil
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.

Assumed Prior Learning (or equivalent):

Restrictions:

Subject outlines

Subject dates

  • Standard Offering
    Enrolment opens: 12/11/2023
    Semester start: 15/01/2024
    Subject start: 15/01/2024
    Last enrolment: 28/01/2024
    Teaching census: 09/02/2024
    Withdraw - Financial: 10/02/2024
    Withdraw - Academic: 02/03/2024
  • Standard Offering
    Enrolment opens: 17/03/2024
    Semester start: 13/05/2024
    Subject start: 13/05/2024
    Last enrolment: 26/05/2024
    Teaching census: 07/06/2024
    Withdraw - Financial: 08/06/2024
    Withdraw - Academic: 29/06/2024
  • Standard Offering
    Enrolment opens: 14/07/2024
    Semester start: 09/09/2024
    Subject start: 09/09/2024
    Last enrolment: 22/09/2024
    Teaching census: 04/10/2024
    Withdraw - Financial: 05/10/2024
    Withdraw - Academic: 26/10/2024
  • Standard Offering
    Enrolment opens: 10/11/2024
    Semester start: 20/01/2025
    Subject start: 20/01/2025
    Last enrolment: 02/02/2025
    Teaching census: 14/02/2025
    Withdraw - Financial: 15/02/2025
    Withdraw - Academic: 08/03/2025
Standard Offering
Enrolment opens: 12/11/2023
Semester start: 15/01/2024
Subject start: 15/01/2024
Last enrolment: 28/01/2024
Teaching census: 09/02/2024
Withdraw - Financial: 10/02/2024
Withdraw - Academic: 02/03/2024
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