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FINC12-200: Fundamentals of Finance

Description

An introduction to the analytical approaches corporate managers use in making financial decisions to maximise firm value. 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. You 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. You will also demonstrate competence with Bloomberg Market Concepts.

Subject details

TypeUndergraduate
CodeFINC12-200
EFTSL0.125
FacultyBond Business School
Semesters offered
  • September 2020 [Standard Offering]
  • January 2021 [Standard Offering]
  • May 2021 [Standard Offering]
  • September 2021 [Standard Offering]
  • January 2022 [Standard Offering]
  • May 2022 [Standard Offering]
Credit10
Study areas
  • Business and Commerce
Subject fees
  • Commencing in 2020: $4,340
  • Commencing in 2021: $3,890

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 using Bloomberg Market Concepts.
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: ?

This subject is not available as a general elective. To be eligible for enrolment, the subject must be specified in the students’ program structure.

Subject outlines

Subject dates

Standard Offering
Enrolment opens10/11/2019
Semester start13/01/2020
Subject start13/01/2020
Cancellation 1?27/01/2020
Cancellation 2?03/02/2020
Last enrolment26/01/2020
Withdraw – Financial?08/02/2020
Withdraw – Academic?29/02/2020
Teaching census?07/02/2020
Standard Offering
Enrolment opens15/03/2020
Semester start25/05/2020
Subject start25/05/2020
Cancellation 1?08/06/2020
Cancellation 2?15/06/2020
Last enrolment07/06/2020
Withdraw – Financial?20/06/2020
Withdraw – Academic?11/07/2020
Teaching census?19/06/2020
Standard Offering
Enrolment opens02/08/2020
Semester start14/09/2020
Subject start14/09/2020
Cancellation 1?28/09/2020
Cancellation 2?05/10/2020
Last enrolment27/09/2020
Withdraw – Financial?10/10/2020
Withdraw – Academic?31/10/2020
Teaching census?09/10/2020