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 cash flow technique to make capital budgeting decisions. You will also demonstrate competence with Bloomberg Market Concepts.
|Bond Business School|
- September 2020 [Standard Offering]
- January 2021 [Standard Offering]
- May 2021 [Standard Offering]
- September 2021 [Standard Offering]
- January 2022 [Standard Offering]
- May 2022 [Standard Offering]
- September 2022 [Standard Offering]
- Current: $4,930
- Commencing in May 2021: $5,110
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 spreadsheets, 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.
6. Demonstrate the ability to produce a written report that demonstrates higher order understanding of key concepts in managerial finance.
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This subject is not available as a general elective. To be eligible for enrolment, the subject must be specified in the students’ program structure.