303338 (v.2) Agribusiness Finance 202

Area:

Muresk Institute

Credits:

25.0

Contact Hours:

5.0

Lecture:

1 x 5 Hours Weekly

Prerequisite(s):

    303399 (v.2) Farm Accounting and Finance 201 or any previous version
    OR
    303246 (v.2) Agribusiness Accounting and Finance 201 or any previous version

Syllabus:

Financial decision-making as applied to small and large agribusiness enterprises. Selected topics include understanding and evaluating financial statements, valuation of financial assets, risk and return, evaluation, sources of finance, leverage and capital structure, financial risk management and working capital management.

Unit Outcomes:

On successful completion of this unit students will have - Explained the functions of an agribusiness financial manager. Evaluated financial statements. Prepared pro-forma statements to facilitate decision-making. Evaluated investments and different sources of finance and understood the issues involved in capital budgeting. Performed lease versus purchase comparison. Understood risk-return trade-off, operating and financial leverage, hedging and speculation and financial risk management. Differentiated between liquidity and profitability and understand the issues involved in working capital management. Constructed financial models using Excel to support financial decision-making and understood the use of information technology in financial management.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Australian Bankers Association., (1991), Financing Your Farm, Melbourne. Benninga, S., (1997), Financial Modelling, Cambridge, MIT Press. Dunstan, B., (1991), Understanding Finance with The Australian Financial Review, Melbourne, Wrightbooks. Farrell, P., (1996), Investor's Guide to the Net, New York, John Wiley. Gitman, L.J. and Juchau, R., (1998), Principles of Managerial Financen, 2nd ed, Melbourne, Addison Wesley. Hutchinson, P. and Alison, S., (1994), Financial Management Decisions - Principles and Applications, Melbourne, Nelson, Lumby, S, (1996), Investment Appraisal and Financial Decisions, 5th ed, London, Chapman and Hall. Peirson, G. and Brown, R., (1998), Peirson and Bird's Business Finance, 7th ed, Sydney, McGraw-Hill. Penson, J.B. and Lins, D.A., (1980), Agricultural Finance, Englewood Cliffs, Prentice-Hall. Wilson, C. and Keers, B., (1998), Financial Management - Principles and Application, 3rd ed, Sydney, Prentice Hall.

Unit Texts:

Barry, P.J. and Ellinger, P.N., (1995), Financial Management in Agriculture, 5th ed, Danville, Interstate Publishers. Petty, J.W. and Peacock, R., (2000), Financial Management, 2nd ed, Sydney, Pearson Education.

Unit Assessment Breakdown:

Continuous 50%, Examination 50%. This is by grade/mark assessment

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 2	Y