BFW2140 - Corporate finance 1 - Monash University

Overview

The aim of the unit is to introduce you 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 objective of financial management, agency problems and control of the corporation; valuation of equity and debt instruments; cost of capital; issues in capital structure and dividend policy; investment evaluation methods; Valuation of alternative investment projects, leasing vs borrowing, real options, mergers and acquisitions; working capital management and ratio analysis; sources and types of funding. The unit is designed to ensure that you gain the necessary skill set for making value-changing financial decisions to maximise firm value.

Offerings

S1-01-MALAYSIA-ON-CAMPUS

S2-01-MALAYSIA-ON-CAMPUS

Requisites

Prohibition

Contacts

Chief Examiner(s)

Professor Balasingham Balachandran

Learning outcomes

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

appraise bonds and stocks utilising the time value of money concept and compute cost of capital

evaluate alternative investment projects, leasing vs borrowing, real options and working capital management, and apply key ratio analysis

apply theories related to capital structure and dividend policy in different tax environments

appraise corporate restructuring, mergers and Acquisitions decisions and examine various types of long-term financing

Teaching approach

Active learning

Assessment

1 - Within semester assessment

2 - Examination

Scheduled and non-scheduled teaching activities

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. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.