MANAGEMT 7101PT - Managerial Finance

North Terrace Campus - Trimester 3 - 2015

This course introduces you to the world of modern finance, especially to the financial operations of business. It covers the concepts of time value of money, asset valuation, risk and return paradigm, capital budgeting, financing, and payout decisions, and derivatives. Upon completion, students will be able to value bonds and stocks, estimate asset returns according to their risk characteristics, choose 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 on their investment and the levels of dividends and other payouts for their shareholders. Finally, students will gain a basic understanding on derivatives such as options and futures, and apply them for sound risk management practices.

  • General Course Information
    Course Details
    Course Code MANAGEMT 7101PT
    Course Managerial Finance
    Coordinating Unit Business School
    Term Trimester 3
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Available for Study Abroad and Exchange Y
    Restrictions Restricted to Certificate, Grad Dip and Master of Business Administration students only.
    Course Description This course introduces you to the world of modern finance, especially to the financial operations of business. It covers the concepts of time value of money, asset valuation, risk and return paradigm, capital budgeting, financing, and payout decisions, and derivatives. Upon completion, students will be able to value bonds and stocks, estimate asset returns according to their risk characteristics, choose 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 on their investment and the levels of dividends and other payouts for their shareholders. Finally, students will gain a basic understanding on derivatives such as options and futures, and apply them for sound risk management practices.
    Course Staff

    Course Coordinator: Chris Howland

    Name: Chris Howland
    Location: N/A
    Telephone: 0437 719 022 (text please)
    Email: chris.howland@gmail.com
    Course Website: www.myuni.adelaide.edu.au
    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes
    The objectives of this subject are to provide students with:
    1. Explain the financial goal governing a firm’s decisions.
    2. Apply various valuation models to value long-term debt, preference shares and ordinary shares.
    3. Explain the importance, role and techniques of capital budgeting in a firm.
    4. Understand risk and return, diversifiable and non-diversifiable risk and asset pricing model.
    5. Understand how to determine the cost of capital of a firm.
    6. Explain operating and financial leverage, and implications for the target capital structure.
    7. Discuss theories and issues related to dividend policy.
    8. Understand the principles of and trade-offs associated with the use of hedging.
    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)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. Objectives 1-8
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. Objectives 1-8
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. Objectives 1-8
    Skills of a high order in interpersonal understanding, teamwork and communication. Objectives 1-8
    A proficiency in the appropriate use of contemporary technologies. Objectives 1-8
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. Objectives 1-8
  • Learning Resources
    Required Resources

    Text Books (s)

    Ross S., Christens M., Drew M., Bianchi R., “Fundamentals of Corporate Finance”, Sixth Edition, 2013, McGraw Hill, 9780071013192

    Recommended Resources

    Regularly reading business newspapers is strongly recommended. The University library has FACTIVA, a database of business newspaper articles. Bloomberg is a good free source on the internet. Subscribing to “Thoughts from the Frontline” and “Outside the Box” from Mauldin Economics is highly recommended (free subscription at http://www.mauldineconomics.com/). For those who like longer reads “Thinks That Make You Go Hmmm...”, from the same website is also recommended.

    Online Learning

    Important messages, topic notes, power point slides, case studies and other materials relating to the course will be placed on MyUni throughout the course. MyUni can be found at (www.myuni.adelaide.edu.au)

  • Learning & Teaching Activities
    Learning & Teaching Modes
    Weekly classes are 3 hours long. You can expect to spend about the same amount of time preparing for each class. Assignments, and exam preparation will demand additional concentrated periods of non-classroom study, on your own or with your allocated student group. As a rough indication, you could expect to spend in the order of 120 hours of study time to complete the course, of which 36 hours would be in class.
    Workload

    No information currently available.

    Learning Activities Summary

    No information currently available.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    No information currently available.

    Assessment Detail

    No information currently available.

    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
  • 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.

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