CORPFIN 7005 - Principles of Finance (M)
North Terrace Campus - Semester 2 - 2021
This course introduces you to the world of modern finance, especially to the financial operations of a business. It covers the concepts of time value of money, basic asset valuation, risk and return paradigm, capital budgeting and financing decisions. Upon completion, students will be able to value bonds and stocks, estimate asset returns according to their risk characteristics and identify capital projects that maximize shareholder's wealth using a wide range of analytical tools. They will also develop a good understanding on how firms finance their capital expenditure.
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General Course Information
Course Details
Course Code CORPFIN 7005 Course Principles of Finance (M) Coordinating Unit Finance and Banking Term Semester 2 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture Course Staff
Course Coordinator: Dr Tariq Haque
Adelaide Trimester 1, 2021 Name: Mr. Peter Lennox
Email: peter.lennox@adelaide.edu.auAdelaide Semester 1, 2021 Melbourne Trimester 1, 2021 Dr Chee Seng Cheong
Associate Professor in Finance
Adelaide Business School
Level 12, 10 Pulteney Street
South Australia, 5005, AUSTRALIA
T: +61 8 8313 0356
E: chee.cheong@adelaide.edu.au
W:www.business.adelaide.edu.auName: G M Wali
Email: gm.waliullah@adelaide.edu.auAdelaide Semester 2, 2021 Dr Tariq Haque
Lecturer in Finance
Adelaide Business School
Room 22, Level 12, 10 Pulteney Street
South Australia, 5005, AUSTRALIA
T: +61 8 8313 7599
E: tariq.haque@adelaide.edu.au
W:www.business.adelaide.edu.auAdelaide Trimester 3, 2021 Dr Ratna Derina
Lecturer in Finance
Adelaide Business School
Room 37, Level 12, 10 Pulteney Street
South Australia, 5005, AUSTRALIA
T: +61 8 8313 7137
E: ratna.derina@adelaide.edu.au
W:www.business.adelaide.edu.auCourse Timetable
The full timetable of all activities for this course can be accessed from Course Planner.
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Learning Outcomes
Course Learning Outcomes
On successful completion of this course, students will be able to:- Explain the financial goal of a firm.
- Apply time value of money principles to evaluate investment opportunities.
- Apply various capital budgeting techniques to evaluate investment projects.
- Determine the required return of different sources of finance.
- Compute the weighted average cost of capital of a project or a firm.
- Demonstrate the impact of taxes and bankruptcy costs on a firm’s capital structure.
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1,2,3,4,5,6 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
2,3,4,5,6 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
1,2,3,4,5,6 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
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Learning Resources
Required Resources
TRIMESTER 1 AND SEMESTER 1:
Textbook
Parrino, Au Yong, Dempsey, Morkel-Kingsbury, Ekanayake, James, Murray, Fundamentals of Corporate Finance, 3rd Edition, Wiley, 2019, ISBN 978-0-7303-6346-0.
Calculator
This course requires considerable mathematical computation. Although much of it is relatively simple, access to an appropriate calculator is necessary. If you intend to purchase a calculator for this course, you will find it useful to purchase a financial calculator. This is of particular relevance for the time value of money calculations - the relevant function keys include; PV, FV, PMT, n, I/Y, NPV, IRR. Any financial calculator is suitable for this course. The most popular financial calculator is the Sharp EL738 (or its variations).
SEMESTER 2 and TRIMESTER 3 2021
Textbook
Parrino, Au Yong, Dempsey, Morkel-Kingsbury, James, Mazzola, Murray, Smales, and Wei, Fundamentals of Corporate Finance, 4th Edition, Wiley, 2020
Calculator
This course requires considerable mathematical computation. Although much of it is relatively simple, access to an appropriate calculator is necessary. If you intend to purchase a calculator for this course, you will find it useful to purchase a financial calculator.
This is of particular relevance for the time value of money calculations - the relevant function keys include; PV, FV, PMT, n, I/Y, NPV, IRR. Any financial calculator is suitable for this course. The most popular financial calculator is the Sharp EL738 (or its variations).Recommended Resources
SEMESTER 2 2021:
Other Reference Books
Berk, DeMarzo, Harford, Ford, Mollica, and Finch, Fundamentals of Corporate Finance, 2nd edition, Pearson, 2013.
Graham, Adam, and Gunasingham, Corporate Finance, 3rd Asia-Pacific Edition, Cengage, 2021.
Parrino, Au Yong, Dempsey, Morkel-Kingsbury, Ekanayake, James, Murray, Fundamentals of Corporate Finance, 3rd Edition, Wiley, 2019, ISBN 978-0-7303-6346-0.
Ross, Drew, Walk, Westerfield and Jordan, Fundamentals of Corporate Finance, 7th Edition, McGraw-Hill, 2016, ISBN 9781743761830.Online Learning
This course offering will be delivered both face-to-face and online.
Relevant course links for Zoom will be made available via MyUni. -
Learning & Teaching Activities
Learning & Teaching Modes
Lectures & Tutorials
This course will offer 2-hour lecture per week from week 1 to week 12. In addition to the lectures, a 50-minute tutorial class will be offered from week 2 until week 12.
Tutorials
Tutorial classes will be held weekly from week 2 to 12. Membership of tutorial classes is to be finalised by the end of the second week of semester. Students wishing to swap between tutorial classes after this time are required to present their case to the Course Coordinator, but given the current restrictive circumstances, and the differences between face-to-face and online classes, changes are generally unlikely to be approved.
Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by both employers and professional bodies.Workload
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Students in this course are expected to attend all lectures and tutorials throughout the semester.
The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours of private study outside of your regular classes.Learning Activities Summary
Topic #1 : The financial manager and the company (Text Chapter 1: 3rd ed or Chapter 1: 4th ed)
Topic #2 : The time value of money (Text Chapter 3: 3rd ed or Chapter 5: 4th ed)
Topic #3 : Discounted cash flows and valuation (Text Chapter 4: 3rd ed or Chapter 6: 4th ed)
Topic # 4 : Risk and return (Text Chapter 5: 3rd ed or Chapter 7: 4th ed)
Topic # 5 : Bond valuation and the structure of interest rates (Text Chapter 6:3rd ed or Chapter 8:4th ed)
Topic # 6 : Share valuation (Text Chapter 7: 3rd ed or Chapter 9: 4th ed)
Topic # 7 : The fundamentals of capital budgeting (Text Chapter 8: 3rd ed or Chapter 10: 4th ed)
Topic # 8 : Cash flows and capital budgeting (Text Chapter 9: 3rd ed or Chapter 11: 4th ed)
Topic # 9 : The cost of capital (Text Chapter 11 or Chapter 13: 4th ed)
Topic # 10 : Capital structure policy (Text Chapter 14: 3rd ed or Chapter 16: 4th ed)
Please refer to the Teaching Schedule located on MyUni regarding which week in semester each topic is covered in lectures and tutorials. -
Assessment
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Summary
Assessment Task Weighting Learning Outcome Quiz #1 10% 1, 2 Quiz #2 10% 1, 2, 3, 4 Quiz #3 10% 1, 2, 3, 4 Excel spreadsheeting assignment 20% 1, 2, 3, 4, 5, 6 Final Exam 50% 1, 2, 3, 4, 5, 6 Total 100% Assessment Detail
1.
Quiz #1 will be conducted online on an individual basis in week 5 of semester. The length of the quiz will be announced closer to the date but will be no more than 60 minutes in duration. It is worth 10% of the overall course assessment.
It may comprise a number of short-answer and multiple choice questions covering topics 1 to 2 of the course.
Feedback for Quiz #1 will be provided in the form of a mark and access will be given to students' test responses and summary solutions within approximately 2 weeks of the scheduled test time.
Further details of the requirements for Quiz #1 will be provided via MyUni.
2.
Quiz #2 will be conducted online on an individual basis in week 8 of semester. The length of the quiz will be announced closer to the date of the quiz but will be no more than 60 minutes in duration. It is worth 10% of the overall course assessment.
It may comprise a number of short-answer and multiple choice questions covering topics 3 & 4 of the course.
Feedback for Quiz #2 will be provided in the form of a mark and access will be given to the students' test responses and summary solutions within approximately 2 weeks of the scheduled test time.
Further details of the requirements for Quiz #2 will be provided via MyUni.
3.4.
Quiz #3 will be conducted online on an individual basis in week 11 of semester. The length of the quiz will be announced closer to the date of the quiz but will be no more than 60 minutes in duration. It is worth 10% of the overall course assessment.
It may comprise a number of short-answer and multiple choice questions covering topics 5 & 6 of the course.
Feedback for Quiz #3 will be provided in the form of a mark and access will be given to the students' test responses and summary solutions within approximately 2 weeks of the scheduled test time.
Further details of the requirements for Quiz #3 will be provided via MyUni.
The Excel Spreadsheet Assignment will involve creating Excel spreadsheets to solve various problems in bond valuation, share valuation, capital budgeting and cost-of-capital calculations. The problems will be practical in nature and may involve collecting relevant data, simulation analysis and scenario analysis. It is worth 20% of the overall course assessment.
Students will work in groups of a maximum of 4 students. Students are not required to come from the same tutorial.
Feedback for the Excel Spreadsheet Assignment will be provided in the form of a mark and access will be given to suggested sample solutions. Feedback will be provided within approximately 2 weeks of the assignment due date.
Further details of the requirements for the Excel Spreadsheet Assignment will be provided via MyUni.
5.
The Final Exam will be conducted on an individual basis at the end of the semester and is weighted at 50% of the overall course assessment.
It will focus on Topics 7, 8, 9 and 10. However, it will be assumed that students are familiar with Topics 1 - 6 and some questions from these topics may also be asked.
The final exam may consist of a combination of multiple choice, true-false and short-answer questions.
A sample exam will be provided closer to the date, to help students with their exam preparation.Submission
NACourse Grading
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
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Student Feedback
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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Student Support
- Academic Integrity for Students
- Academic Support with Maths
- Academic Support with writing and study skills
- Careers Services
- International Student Support
- Library Services for Students
- LinkedIn Learning
- Student Life Counselling Support - Personal counselling for issues affecting study
- Students with a Disability - Alternative academic arrangements
- YouX Student Care - Advocacy, confidential counselling, welfare support and advice
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Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
- Academic Credit Arrangements Policy
- Academic Integrity Policy
- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs Policy
- Copyright Compliance Policy
- Coursework Academic Programs Policy
- Elder Conservatorium of Music Noise Management Plan
- Intellectual Property Policy
- IT Acceptable Use and Security Policy
- Modified Arrangements for Coursework Assessment Policy
- Reasonable Adjustments to Learning, Teaching & Assessment for Students with a Disability Policy
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
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Fraud Awareness
Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.
The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.
