FINC71-101: Fundamentals of Finance

Description

This subject introduces the analytical approaches used by managers when making financial decisions. Core topics include the time value of money, the relationship between risk and return (i.e., CAPM), portfolio theory (i.e., diversification), and capital structure. On successful completion of the subject, students will be able to apply these concepts to value both stocks and bonds, estimate the cost of capital and implement discounted cash flow techniques in order to make capital budgeting decisions. Students will also gain exposure to real-time market data via the Bloomberg database. 

Subject details

Type: Postgraduate Subject
Code: FINC71-101
EFTSL: 0.125
Faculty: Bond Business School
Semesters offered:
  • September 2022 [Standard Offering]
  • January 2023 [Standard Offering]
  • May 2023 [Standard Offering]
Credit: 10
Study areas:
  • Business, Commerce, and Entrepreneurship
Subject fees:
  • Commencing in 2022: $5,170.00
  • Commencing in 2023: $5,300.00
  • Commencing in 2022: $5,570.00
  • Commencing in 2023: $5,710.00

Learning outcomes

  1. Explain to specialist and non-specialist audiences the relevant issues encountered by financial managers, along with the analytical techniques available in addressing these issues, while maximising firm value.
  2. Utilize spreadsheets, formulae, and financial calculators to value various cash flow structures (e.g., amortising loans, bonds, common stocks) whilst identifying and addressing critical aspects of uncertainty.
  3. Apply advanced theoretical and technical finance knowledge to analyse the risk/return trade-off of investments and contextualise 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. Exercise judgement, under minimal guidance, and employ technical finance knowledge to prepare necessary cash flows and methodically evaluate the capital budgeting projects of a firm whist evaluating their cost of capital.

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:

Anti-requisites:

Subject outlines

Subject dates

  • Standard Offering
    Enrolment opens: 17/07/2022
    Semester start: 12/09/2022
    Subject start: 12/09/2022
    Cancellation 1: 26/09/2022
    Cancellation 2: 03/10/2022
    Last enrolment: 25/09/2022
    Withdraw - Financial: 08/10/2022
    Withdraw - Academic: 29/10/2022
    Teaching census: 07/10/2022
  • Standard Offering
    Enrolment opens: 13/11/2022
    Semester start: 16/01/2023
    Subject start: 16/01/2023
    Cancellation 1: 30/01/2023
    Cancellation 2: 06/02/2023
    Last enrolment: 29/01/2023
    Withdraw - Financial: 11/02/2023
    Withdraw - Academic: 04/03/2023
    Teaching census: 10/02/2023
  • Standard Offering
    Enrolment opens: 19/03/2023
    Semester start: 15/05/2023
    Subject start: 15/05/2023
    Cancellation 1: 29/05/2023
    Cancellation 2: 05/06/2023
    Last enrolment: 28/05/2023
    Withdraw - Financial: 10/06/2023
    Withdraw - Academic: 01/07/2023
    Teaching census: 09/06/2023
Standard Offering
Enrolment opens: 17/07/2022
Semester start: 12/09/2022
Subject start: 12/09/2022
Cancellation 1: 26/09/2022
Cancellation 2: 03/10/2022
Last enrolment: 25/09/2022
Withdraw - Financial: 08/10/2022
Withdraw - Academic: 29/10/2022
Teaching census: 07/10/2022