2807 (v.5) Finance (Managerial) 212

Area:

School of Economics and Finance

Credits:

25.0

Contact Hours:

3.0

Lecture:

1 x 2 Hours Weekly

Tutorial:

1 x 1 Hours Weekly

Anti Requisite(s):

12607 (v.3) Finance (Principles) 215 or any previous version

Prerequisite(s):

2806 (v.5) Finance (Introductory) 201 or any previous version

Syllabus:

Introduction to the concept of share valuation, concept of risk and return and application to portfolio theory, pricing of risky securities (CAPM), evaluation of investment proposals, concept of cost of capital, corporate finance policy including capitalstructure and dividend decisions, mergers and takeovers and valuation and application of derivative securities.

Unit Outcomes:

On successful completion of this unit students will have - An understanding of the finance function within corporations as applied to the making of investment, funding and dividend decisions. Appreciated the nature and role of financial markets and institutions within the broader context of the economic system. Developed analytical and problem solving skills. An understanding of the pricing of financial instruments, including debt, convertible securities, equity, options, futures and various other derivative securities. An appreciation of the role and nature of risk management techniques including risk diversification. Knowledge of portfolio management and risk hedging utilising options and various kinds of financial and commodity futures. An understanding of the application of economic principles and models of the analysis of financial problems.

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:

Brealey and Myers. (1990). Principles of Corporate Finance. (fourth edition). Sydney, McGraw Hill. Van Horne, Davis, Nicol and Wright. (1994). Financial Managment and Policy in Australia. (third edition). Stdney, Prentice Hall. Weston and Brigham. (1987). Essentials of Financial managment. USA, Dryden Press. Brigham and Gapenski. (1988). Financial Managment. (fifth edition). USA, Dryden Press. Martin and Burrow. (1991). Applied Financial Maths. Sydney, Prentice Hall.

Unit Texts:

Pierson, G., Brown, R., Easton, S. and Howard, P. (1998). Bisuness Finance. (eighth edition). Sydney, McGraw Hill.

Unit Assessment Breakdown:

Final Examination 40%. Group Assignment 20%. Mid-Semester Test 30%. Tutorial Participation 10%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 1	Y		Y
2004	Bentley Campus	Semester 2	Y		Y
2004	Bentley Campus	Summer Period	Y
2004	Joondalup Campus	Semester 1	Y
2004	Joondalup Campus	Semester 2	Y
2004	Metro College Malaysia	Semester 1	Y
2004	Metro College Malaysia	Semester 2	Y
2004	Metro College Malaysia	Summer Period	Y
2004	Miri Sarawak Campus	Semester 2	Y
2004	Mktg Inst of S'pore	Trimester 1A	Y