CORPFIN 2500 - Business Finance II
North Terrace Campus - Semester 2 - 2015
General Course Information
Course Code CORPFIN 2500 Course Business Finance II Coordinating Unit Business School Term Semester 2 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Assumed Knowledge (ECON 1008 or STATS 1000) & ECON 1004 & ACCTING 1002 or ACCTING 1005 or equivalent Course Description This course examines firm investment and distribution decisions in the context of a capital market structure and efficiency. Valuation methods are developed for valuing projects and securities. Basic portfolio theory is discussed to develop simple asset pricing models and used for determining the cost of capital for use in investment evaluation. The implications of alternative financing options (debt, equity (retained and new) and leasing) are considered, and elementary capital structure theorems are presented, in relation to which the dividend decisions are analysed. The question of market efficiency is considered, and the implications of this for trading strategies discussed.
Course Coordinator: Dr Alex Chen
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesThe aim of this course is that on completion students can:
- Apply core concepts of financial management, including using valuation and financial modelling techniques to make informed financial decisions.
- Discuss effect of limitations when using these techniques in a practical context.
- Recognize and discuss the implications of ethical behaviour in the context of financial management and financial planning.
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. 1, 2 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1 Skills of a high order in interpersonal understanding, teamwork and communication. 1 A proficiency in the appropriate use of contemporary technologies. 1 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1, 2 A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 3 An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 3
Pierson, G., Brown, R., Easton, S., Howard, P., Pinder, S., Business Finance, Eleventh Edition, McGraw Hill, 2011.
If you would like to use a graphic calculator in the exam, no text can be stored in its memory. A financial calculator is highly recommended.
Recommended ResourcesBecause this subject gives you the theory and tools to deal with practical financial issues, you will also benefit and find it interesting if you regularly look at the Australian Financial Review and/or the finance pages of the Advertiser or the Australian. Some tutorial questions will refer directly to these issues. This will fill you in with the topics and current issues in the fields of corporate finance and financial management.
Online LearningThis course is supported by on-line learning including:
- Access to the resources provided by McGraw Hill in support of the textbook
- Access to course materials
- AV output of lectures shortly after the lecture is held, for revision or catch up purposes
- Other links and references as appropriate
Learning & Teaching Activities
Learning & Teaching ModesThe approach to learning and teaching for is to use weekly lectures supported by problem-solving tutorials developing and extending material covered in lectures.
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 throughout the semester plus one tutorial class (beginning from week 2) each week. This course has been designed such that you are expected to commit approximately 9 hours per week of private study outside of your regular classes.
Learning Activities Summary
Date Topic Textbook Reading (Pierson)
30-Jul (1) The Goals and Functions of Finance Chapter 1
6-Aug (2) Time Value of Money Chapter 3 (Tutorials start from this week)
13-Aug (3) Bond and Stock Valuation Chapter 4
20-Aug (4) Basic Project Evaluation Chapter 5
27-Aug (5) Other Issues in Project Evaluations Chapter 6
3-Sep CLASS TEST 1 (topic 1-4; no tute in this week)
10-Sep (6) Portfolio Theory (Risk and Return) Chapter 7
17-Sep (7) Market Efficiency Chapter 16
8-Oct (8) Dividend Policy Chapter 11
15-Oct CLASS TEST 2 (topic 5-7; no tute in this week)
22-Oct (9) Capital Structure Decisions Chapter 12 & 13
29-Oct (10) Cost of Capital Chapter 14
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 Date Weighting Topics covered Related learning outcome Class test 1 3 Sep at Bragg Lecture Theatre 20% 1-4 All Class test 2 15 Oct at Bragg Lecture Theatre 15% 5-7 All Final exam
TBA by Exam Office 65% 1-10 All
Class tests and final exam are Closed-book examinations. However, a formula sheet will be provided by the lecturer. Also, class tests and final exam are compulsory and not redeemable. Failure to sit a test without lecturer's approval will result in zero marks for that test.
Assessment Related RequirementsWhile tutors will not take attendance during tutorials, students should not miss any class. It is in your best interest to attend all lectures and tutorials.
No information currently available.
No information currently available.
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.
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.
- Academic Support with Maths
- Academic Support with writing and speaking skills
- Student Life Counselling Support - Personal counselling for issues affecting study
- International Student Support
- AUU Student Care - Advocacy, confidential counselling, welfare support and advice
- Students with a Disability - Alternative academic arrangements
- Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy
- LinkedIn Learning
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
- Academic Credit Arrangement Policy
- Academic Honesty Policy
- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs
- 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
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
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.