CORPFIN 7005 - Principles of Finance (M)

North Terrace Campus - Trimester 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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Course Details

Course Code	CORPFIN 7005
Course	Principles of Finance (M)
Coordinating Unit	Finance and Banking
Term	Trimester 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: Peter Lennox

Adelaide Trimester 1, 2021
Name: Mr. Peter Lennox Email: peter.lennox@adelaide.edu.au
Adelaide 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.au	Name: G M Wali Email: gm.waliullah@adelaide.edu.au

Adelaide 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.au

Adelaide 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.au

Course Timetable

The full timetable of all activities for this course can be accessed from Course Planner.

Melbourne Campus students
â¾Students in this course are expected to attend two 1-hour lectures and one 2-hour practical (tutorial) class each week.
â¾PRACTICALS (tutorials) commence in WEEK 2 and ASSESSMENT in practicals BEGINS in WEEK 2.
â¾Melbourne Campus students are asked to refer to MyUni for applicable timetable and assessment information.

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	2, 3

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

This course will offer 3-hours of content each week including a 90-minute online interactive seminar. This will continue from trimester week 1 to week 12. The seminar will be focused on revising the prior week online recorded lecture class covering a particular topic and applying those principles via topic-based Student Review Questions. Note that online class attendance for the online interactive seminar is an important component of your learning in this course and forms part of your assessment. The communication skills developed in class by regular and active participation in discussions are considered to be most important by the Adelaide Business School, and are highly regarded by employers and professional bodies.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

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 seminars throughout the trimester.
The University expects full-time students (i.e. those taking 12 units per relevant term) 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 the online course content.

Learning Activities Summary

The schedule of lecture topics for this course is as follows:

Topic 1: Introduction to Corporate Finance – the scope and activities of corporate finance, principles roles of corporate finance manager & the key objective of financial management.

Topic 2: Valuing Bonds and Shares – introduction to bonds, valuation of bonds, introduction to shares & valuation of shares.

Topic 3: Capital Budgeting – introduction to various capital budgeting criteria, application of criteria to investment proposals, advantages and disadvantages of each criteria.

Topic 4: Cash Flow Estimation and Analysis of Risk – determination of relevant cash flows for investment analysis, sources of risk in cash flow forecasting, assessment of forecasting risk, implications of management options in project evaluation.

Topic 5: Risk and Return, and Capital Market Efficiency – introduction to the concept of expected returns & volatilities for individual assets and for portfolios of assets, a brief discussion about efficient market hypotheses.

Topic 6: Portfolio Management and Asset Pricing – introduction to the concept of diversification strategy, Capital Asset Pricing Model & Arbitrage Pricing Model.

Topic 7: Cost of Capital – determination of cost of equity, cost of preference share, cost of debt and weighted average cost of capital (WACC).

Topic 8: Capital Structure and Leverage – introduction to common types of long term capital, Modigliani and Miller capital structure decision, effects of corporate taxes and effects of financial distress.

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	Task Type	Due	Weighting	Learning Outcome
Online Class Test (Open book)	Individual	Trimester week 5	10%	1, 2, 3, 4
Group Assignment	Group	Trimester week 10	25%	3, 4
Class Participation	Individual	Trimester weeks 1 to 12	10%	1, 2, 3, 4, 5, 6
Final Assessment (Open book)	Individual	To be advised via MyUni	55%	1, 2, 3, 4, 5, 6
TOTAL			100%

Assessment Detail

Open-book online class test to be completed in the trimester week 5 class and will be held over a period of 2 hours on an individual basis. The class test will cover topic 1 (part A and part B) of the course materials. Questions will comprise a combination of true-false and multiple choice questions. Students will obtain their assessment result for this component in the form of a mark. This assessment component is allocated 10% of the total assessment marks for the course.

The group assignment requires student groups to provide a written response to a number of discussion and problem-based questions. Students will obtain their assessment result for this component in the form of a mark. All students in an allocated group will obtain the same assessment mark. This task is allocated 25% of the total assessment marks for the course.

The class participation assessment task requires students to both attend and participate in the weekly online Zoom classes. Marks will be allocated for responses to Student Review Questions posed to the class and organisational skills attached to working with class colleagues in consolidating group input to allocated discussion / problem-based questions. Students will obtain their assessment result for this component in the form of a grade. This task is allocated 10% of the total assessment marks for the course.

The final assessment task, to be completed by a date that will be advised via MyUni, will be held over a period of 2 hours on an individual basis. The final assessment will cover all topics of the course materials. Questions in the final assessment will comprise a combination of true-false, multiple choice, and short answer (discussion / problem-based) questions. Students will obtain their assessment result for this component in the form of a mark. This assessment component is allocated 55% of the total assessment marks for the course.

Submission

No information currently available.

Course 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.

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.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
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.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator