FINC19011 - Business Finance
Term 1 - 2017


All details in this unit profile for FINC19011 have been officially approved by CQUniversity and represent a learning partnership between the University and you (our student). The information will not be changed unless absolutely necessary and any change will be clearly indicated by an approved correction included in the profile.

Overview

This unit covers the basic concepts, tools and techniques that financial managers use to maximise shareholder wealth. The main financial decisions that will be covered include investment, financing and dividends using practical applications. Within these three main financial decision-making areas, the unit defines the goal of the firm, discusses how investments are evaluated, how sources and the mix of capital are determined and how the retention and distribution of earnings is reached.

Details

Career Level Undergraduate
Unit Level Level 2
Credit Points 6
Student Contribution Band 3A
Fraction of Full-Time Student Load 0.125

Pre-requisites or Co-requisites

ECON11026 and either MATH11246 or STAT11048

Attendance Requirements

All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).

Offerings

Term 1 - 2017
  • Brisbane
  • Distance
  • Melbourne
  • Sydney

Website

This unit has a website, within the Moodle system, which is available two weeks before the start of term. It is important that you visit your Moodle site throughout the term. Go to Moodle

Recommended Student Time Commitment

Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.

Class Timetable

Assessment Overview

Assessment Task Weighting
1. Practical Assessment 10%
2. Practical and Written Assessment 20%
3. Online Quiz(zes) 10%
4. Examination 60%

This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Procedures for more details of interim results and final grades.

All University policies are available on the IMPortal.

You may wish to view these policies:

  • Grades and Results Procedure
  • Assessment Policy and Procedure (Higher Education Coursework)
  • Review of Grade Procedure
  • Academic Misconduct Procedure
  • Monitoring Academic Progress (MAP) Policy and Procedure – Domestic Students
  • Monitoring Academic Progress (MAP) Policy and Procedure – International Students
  • Refund and Excess Payments (Credit Balances) Policy and Procedure
  • Student Feedback – Compliments and Complaints Policy and Procedure
  • Acceptable Use of Information and Communications Technology Facilities and Devices Policy and Procedure

This list is not an exhaustive list of all University policies. The full list of University policies are available on the IMPortal.

Feedback, Recommendations and Responses

Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.

Feedback Source Recommendation
More supports on maths needed. Student Additional resources are to be included to cover the basic maths prerequisite to this course.
A study guide will help and more support in general will benefit Flex students. Student and Self A revision of all slides will be undertaken so that the students are provided specific directions on the contents. The course already entails collaborate sessions, and this will be continued.
Exam advice can be more specific. Student The structure of the exam is to be communicated more specifically early from the semester to enable the students prepare better.
An updating of course materials may be conducted. Self and Student A change of the textbook and/or the inclusion of more supportive resources to guide the reading of the current textbook will be considered over the next 12 months. Additionally, a software, which interactively trains some of the concepts in this course, is currently being developed and is to be introduced into the course. This will expectantly increase the interestingness of the course and reduce the cognitive load linked to the course.
On successful completion of this unit, you will be able to:
  1. discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve
  2. apply financial mathematics for the valuation of corporations and other financial decision making
  3. make investment decisions using sound capital budgeting techniques
  4. analyse risk and return for financial decision making
  5. discuss the pricing of shares, bonds and the role of efficient markets.

Alignment of Assessment Tasks to Learning Outcomes

Assessment Tasks Learning Outcomes
1 2 3 4 5
1 - Practical Assessment  
2 - Practical and Written Assessment
3 - Online Quiz(zes)
4 - Examination

Alignment of Graduate Attributes to Learning Outcomes

  • Introductory Level
  • Intermediate Level
  • Graduate Level
Graduate Attributes Learning Outcomes
1 2 3 4 5
1. Communication          
2. Problem Solving
3. Critical Thinking
4. Information Literacy          
5. Team Work
6. Information Technology Competence
7. Cross Cultural Competence          
8. Ethical practice          

Alignment of Assessment Tasks to Graduate Attributes

  • Introductory Level
  • Intermediate Level
  • Graduate Level
Assessment Tasks Graduate Attributes
1 2 3 4 5 6 7 8
1 - Practical Assessment          
2 - Practical and Written Assessment        
3 - Online Quiz(zes)          
4 - Examination            

Prescribed Textbooks

Fundamentals of Corporate Finance
Author/s: R. Parrino, D. Kidwell, A. Yong, Dempsey, Morkel-Kingsbury, Ekanayake, Kofoed, Murray Year: 2014
Edition: 2nd Australasian edn Publisher: John Wiley and Sons
City: Milton State: Qld
Country: Australia
View textbooks at the CQUniversity Bookshop
Note:

E-book version may be used as an alternative to the hard copy.

May involve the use and installation of a customized software. Further details will be advised later.

IT Resources

You will need access to the following IT resources:
  • CQUniversity Student Email
  • Internet
  • Unit Website (Moodle)
  • MathType or other Equation Editor
  • MS Office (Word, Excel, PowerPoint)
  • Different online resources indicated on Moodle.
All submissions for this unit must use the American Psychological Association (APA) referencing style (details can be obtained here). For further information, see the Assessment Tasks below.
Unit CoordinatorTasadduq Imam (t.imam@cqu.edu.au)
Note: Check the Term-Specific section for any additional contact information provided by the teaching team
Week Begin Date Module/Topic Chapter Events and Submissions
Week 1 06-03-2017

Introduction to finance and Time Value of Money

1 & 5(Partial)

Week 2 13-03-2017

Cash flow and valuation

5(Partial) & 6(Partial)

Week 3 20-03-2017

Risk and return

7

Week 4 27-03-2017

Bond valuation

6(Partial) & 8

Week 5 03-04-2017

Share valuation

6(Partial) & 9

Knowledge Assignment Due Friday (07 Apr 17) 11:45 PM AEST
Vacation Week 10-04-2017
Week 6 17-04-2017

Capital budgeting basics

10

Week 7 24-04-2017

Cash flow and capital budgeting

11 & 12

Week 8 01-05-2017

Cost of capital

13

Valuation Assignment Due Friday (05 May 17) 11:45 PM AEST
Week 9 08-05-2017

Raising capital

15

Week 10 15-05-2017

Capital structure policy

16

Week 11 22-05-2017

Dividends and dividend policy

17

Week 12 29-05-2017

Revision

All

Online Quiz Due Monday (29 May 17) 11:45 AM AEST
Review/Exam Week 05-06-2017
Exam Week 12-06-2017

This unit entails some basic mathematical knowledge including equation rearrangement to solve for unknown variables, calculation of powers and logarithm, and the basic calculator usage to determine values of mathematical expressions. Some resources on these basic concepts are provided on Moodle, and it is recommended to note these resources in case of any confusion regarding these concepts.

1 Practical Assessment

Assessment Title Knowledge Assignment
Task Description

This assessment item consists of a set of questions and problems, based on weeks 1 to 4 inclusive. You are to respond to the questions and upload your submission as a doc/docx/rtf format through Moodle. Please note that you are encouraged to employ cloud services to store your documents while you prepare the assessment; though the final submission has to be made through the assessment submission link on Moodle. The assessment is targeted mainly at evaluating your knowledge upon the relevant topics and practical application of the knowledge.

Further details and the questions you need to answer will be provided within the Assessment block in Moodle by Week 1 Friday.

This is an assessment to be addressed individually.

The assessment is to be typed; and you are to show any relevant formula and calculation steps. You can show your calculations through an Equation Editor, MathType or similar tools. You can also use financial calculator. If you use the financial calculator, you need to show the formula and figures in the formula as well as the financial calculator steps. In addition, you should state the Brand and Model number of the calculator used on the title page.

Please do not round until the final answer is reached and then show answers to two decimal places. If the answer is a percentage, convert from decimal format to percentage up to two decimal places.

Assessment Due Date Week 5 Friday (07-Apr-2017) 11:45 PM AEST
Return Date to Students Week 7 Friday (28-Apr-2017)
Further information will be advised on Moodle
Weighting 10%
Assessment Criteria

This assessment item assesses your ability to solve finance problems based on the content covered in weeks 1 to 4 inclusive. Further, your ability to extract information from online resources and assess the information through the topics learnt in the unit is also judged. Full marks for each of the questions are indicated within the relevant document on Moodle. For math problems, the response needs to show formula and calculation steps, and the response will be judged both upon showing these steps and the final answer derived. For discussion and other questions, depending upon the mark allocated and question requirement highlighted on Moodle, the response will be judged in terms of quality, appropriate referencing, and presentations.

Referencing Style American Psychological Association (APA)
Submission Online

Submit through the link provided in Moodle.

Learning Outcomes Assessed
This section can be expanded to view the assessed learning outcomes

1. discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve

2. apply financial mathematics for the valuation of corporations and other financial decision making

4. analyse risk and return for financial decision making

5. discuss the pricing of shares, bonds and the role of efficient markets.

Graduate Attributes
This section can be expanded to view the assessed graduate attributes

2. Problem Solving

3. Critical Thinking

6. Information Technology Competence



2 Practical and Written Assessment

Assessment Title Valuation Assignment
Task Description

This assessment item is to be completed individually. You are required to complete a set of mathematical problems, and associated discussion questions and case studies (real world scenario, or hypothetical or virtual world scenario), outlined on Moodle. The contents will be based on weeks 1-5 (inclusive). While assessment 1 covers the basic knowledge, this assessment aims at both judging your competence in respect to the theories and problems encountered and making you familiar with the practical applications of these concepts in processing real world information.

Calculations can be illustrated using an Equation Editor, MathType or financial calculator steps. If you use the financial calculator, you must show the formula and figures in the formula as well as the financial calculator steps.

You may also be required to use Microsoft Excel or similar software for assessment questions. Further, the assessment may involve extracting real world information from online resources.

The explanations in discussion questions should be aimed at one brief paragraph to multiple paragraphs depending upon the question.

If you use sources to support your decisions, you must use in-text referencing to properly acknowledge the work of the original author. However, you are not expected to reference the formulae.

Further details, including the questions to be answered, will be provided within the Assessment block in Moodle by Week 5 Monday.

Also, you are to submit as a doc/docx/rtf format. Please note that you are encouraged to employ cloud services to store your documents while you prepare the assessment; though the final submission has to be made through the assessment submission link on Moodle.

Assessment Due Date Week 8 Friday (05-May-2017) 11:45 PM AEST
Return Date to Students Week 11 Tuesday (23-May-2017)
Further return information, including any potential slightly earlier return date, will be advised on Moodle.
Weighting 20%
Assessment Criteria

Your performance will be based on your ability to solve complex finance problems, which will provide evidence of your critical thinking and problem solving skills using both formula/financial calculator and Microsoft Excel; and it will also judge your ability to use real world online resources. Marks will be allocated for this assignment for meeting the following requirements:

  • Completeness of submitted assignment – all required parts submitted
  • Accuracy of the calculations and explanations
  • Presentation: clearly and neatly labelled answers to each question; no spelling, typing or grammatical errors; and appropriately referenced if required.
  • References to proper sources in the case of discussions
  • Model construction (if any) using Microsoft Excel

More details are on Moodle.

Note: Ensure you show the formulae, figures inserted into the formulae and then your calculation steps used (either financial calculator steps or further steps using the equation). Answers need to be shown appropriately e.g. if a percentage you can show up to two decimal places such as 12.25%; if $ and cents then you can show as $50,000.18 (2 decimal places only).

A specific marking criteria is provided on Moodle.
Referencing Style American Psychological Association (APA)
Submission Online

All students are required to submit their assignment through the Assessment block in Moodle

Learning Outcomes Assessed
This section can be expanded to view the assessed learning outcomes

1. discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve

2. apply financial mathematics for the valuation of corporations and other financial decision making

3. make investment decisions using sound capital budgeting techniques

4. analyse risk and return for financial decision making

5. discuss the pricing of shares, bonds and the role of efficient markets.

Graduate Attributes
This section can be expanded to view the assessed graduate attributes

2. Problem Solving

3. Critical Thinking

5. Team Work

6. Information Technology Competence



3 Online Quiz(zes)

Assessment Title Online Quiz
Task Description

Complete an online quiz within the assessment block in Moodle. The quiz will consist of 15 questions relating to Chapters 10 to 13, and 15-16 from your prescribed textbook (covering weeks 6 to 10 contents). The quiz will contain both multiple choice and true-false questions. You have been allocated 65 minutes to complete this online quiz.

You will not be able to re-open the quiz after this date. Therefore it is your responsibility to complete the quiz within the specified time period. If you experience a computer transmission problem you cannot resolve, you are required to contact the unit coordinator by email (the online system records your attempt on the quiz) at the earliest.

Number of Quizzes 1
Assessment Due Date Week 12 Monday (29-May-2017) 11:45 AM AEST
Available from 9:00 am Friday 19 May 2017 to 11:45 am Monday 29 May 2017 only (AEST)
Return Date to Students Week 12 Tuesday (30-May-2017)
Your online quiz results will be automatically generated and will be displayed upon completion of the quiz. You can access your results again on the course website via the Gradebook. You will have access to your completed quiz to check the questions you got wrong after the quiz closes..
Weighting 10%
Assessment Criteria

Students will be assessed on their problem-solving and critical thinking skills, demonstrated by their performance on the online quiz. The nature of this assessment item indirectly assesses your information technology competence.

Submission Online

Complete within Moodle - access via the Assessment block.

Learning Outcomes Assessed
This section can be expanded to view the assessed learning outcomes

1. discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve

2. apply financial mathematics for the valuation of corporations and other financial decision making

3. make investment decisions using sound capital budgeting techniques

4. analyse risk and return for financial decision making

5. discuss the pricing of shares, bonds and the role of efficient markets.

Graduate Attributes
This section can be expanded to view the assessed graduate attributes

2. Problem Solving

3. Critical Thinking

6. Information Technology Competence



Examination

Outline Complete an examination
Date During the University examination period
Weighting 60%
Length 180 minutes
Details Dictionary - non-electronic, concise, direct translation only (dictionary must not contain any notes or comments).
Calculator - all non-communicable calculators, including scientific, programmable and graphics calculators are authorised.
Closed Book
Learning Outcomes Assessed
This section can be expanded to view the assessed learning outcomes

1. discuss the key decisions facing corporate financial managers and solve many of the problems these financial managers are expected to solve

2. apply financial mathematics for the valuation of corporations and other financial decision making

3. make investment decisions using sound capital budgeting techniques

4. analyse risk and return for financial decision making

5. discuss the pricing of shares, bonds and the role of efficient markets.

Graduate Attributes
This section can be expanded to view the assessed graduate attributes

2. Problem Solving

3. Critical Thinking


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