BFC2140 - Corporate finance 1 - Monash University

There is a more recent version of this academic item available.

Overview

The aim of the unit is to introduce students to the theory and application of why and how value enhancing corporate financial decisions are made and implemented. With the emphasis on publicly listed companies, topics covered include; the corporate objective of management, investment evaluation models, valuation of equity and debt instruments, sources and types of funding, issues in risk and return, portfolio theory, asset pricing models, issues in capital structure and dividend policy and the efficiency of capital markets. The unit is designed to ensure students with the necessary skill set for making value-changing financial decisions to maximise firm value.

Offerings

S1-01-CLAYTON-ON-CAMPUS

S2-01-CLAYTON-ON-CAMPUS

Requisites

Prerequisite

Prohibition

Rules

Enrolment Rule

If students are enrolled in course B6014, there is no prerequisite.

To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 Higher level. You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study. You should self-assess your maths competency prior to enrolling in this unit.

Contacts

Chief Examiner(s)

Dr Emma Zhang

Learning outcomes

On successful completion of this unit, you should be able to:

evaluate investment options and value of equity and debt instruments

explain portfolio theory and show how the theory can be extended to price risky assets

estimate the appropriate cost of capital for investment appraisal purposes

analyse issues determining capital structure and dividend policy

apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with corporate finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC2140.

Teaching approach

Active learning

Peer assisted learning

Assessment

1 - Within semester assessment

2 - Examination

Scheduled and non-scheduled teaching activities

Lectures

Tutorials

Workload requirements

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Learning resources

Technology resources

Other unit costs

Costs are indicative and subject to change.
Electronics, calculators and tools: $40