CORPFIN 7101NA - Managerial Finance
Ngee Ann Academy - Quadmester 3 - 2020
General Course Information
Course Code CORPFIN 7101NA Course Managerial Finance Coordinating Unit Business School Term Quadmester 3 Level Postgraduate Coursework Location/s Ngee Ann Academy Units 3 Available for Study Abroad and Exchange Y Restrictions Available to Graduate Certificate, Graduate Diploma and Master of Business Administration students only - other students must first meet with program director for enrolment approval 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 Coordinator: Professor Ralf Zurbrugg
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course, students will be able to:
1. Explain the financial goal governing a firm’s financial 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 models.
5. Understand how to determine the cost of capital of a firm.
6. Explain the effects of financial leverage, and the factors underlying the selection of target capital structures.
7. Understand the theories that try to explain capital structure and relevance to the real world.
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)
Objectives 1-7 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
Objectives 1-7 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
Objectives 1-7 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
Objectives 1-7 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
Objectives 1-7 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
Required ResourcesParrino et al., Fundamentals of Corporate Finance. 3rd Edition. Wiley. ISBN 978 0 471 27056 0
Students also need access to Microsoft Excel.
Recommended ResourcesAccess to Financial newspapers (eg, Australian Financial Review, Financial Times, Wall Street Journal, Bloomberg) is also recommended but not essential.
Online LearningVideos off all topics, course materials and other learning resources are all located at the course MyUni website found at myuni.adelaide.edu.au
Learning & Teaching Activities
Learning & Teaching ModesIn this course a mix of learning methods, including topic presentations, interactive discussion, the solving of assigned questions and problems on a regular basis, and sharing of business experiences and observation is used.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Students should allocate up to eight hours per week of study time to do appropriate readings, solving set questions, problems, and assignments in addition to attendance at scheduled class sessions.
Learning Activities Summary
Topic Details Textbook
1 Introduction: Issues in Corporate Finance - scope
and activities of corporate finance, role of the corporate finance
manager, key goal of financial management, the agency problem, and
relationships with financial markets
1&2 2 Valuation Principles: Introduction to time value of money, present values; single and multiple cash flows 3 3 Discounted Cash Flow Vaulations: Pricing annuities, perpetuities, effectvie annual rates 4 4 Principles of Risk and Return: Defining risk and return, Diversification benefits, principles of portfolio theory 5 5 Market Efficiency and Bond Vaulation: Types of market efficiency, bond pricing, term structure of interest rates 6 6 Share Valuation: Standard models for princing stocks 7 7 Basics of Capital Budgeting: Learn methods to evaluate projects using NPV, IRR and payback methods 8 8 Determining Free Cash Flows: work out what should and should not be considered as part of a project's free cash flows and comparing projects with different lifespans 9 9 Cost of Capital: Understand the principles behind the Weighted Average Cost of Capital (WACC) 11 10 Capital Structure: Cover the theories explaining capital structure and consider what factors determine an optimal capital structure for a company. 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 SummaryThe assessment consits of homework questions for each topic (worth a total of 40% of total marks), a group assignment worth 30% and a timed/set quiz worth 30%.
Assessment DetailBoth the homework and quiz assessment are to be conducted online and are individual assessments. Access to a computer and Microsoft Excel is required.
The group assignment can have a maximum of 3 persons in the group.
Please note that students need to attain a passing grade (50%) in each of the three aforementioned forms of assessments in order to pass the course.
SubmissionThe assessed homework is conducted online as each Topic is completed. The quiz is also conducted at the end of the teaching period. However, a specified time will be advertised to take the quiz with strict time limits set to complete the quiz.
The group assignment is to be submitted through the MyUni course portal and students will have three weeks to complete the task from the date that the assignment is released to the students.
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.
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- Student Life Counselling Support - Personal counselling for issues affecting study
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- Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy
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- Modified Arrangements for Coursework Assessment
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
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