Business Finance (11215.2)

This is a problem oriented unit which requires students to learn and apply various fundamental finance concepts and tools for typical financial decision making by business enterprises within a framework of maximising shareholder wealth. Students are introduced to a range of concepts such as financial goals, time value of money, risk and return analysis, asset pricing, capital budgeting, cost of capital, capital structure, and dividend policies.

Learning outcomes

After successful completion of this unit, students will be able to:
1. Explain the goals of financial management of a firm and basic finance principles, including the time value of money concepts, risk-return relationship, efficient market and portfolio diversification concepts;
2. Differentiate and explain theories and models used in investment, financing and dividend decisions;
3. Select and apply appropriate models and techniques to solve problems relating to the valuation of shares and bonds, alternative capital investment proposals, and to calculate cost of capital; and
4. Apply capital structure theories and dividend policies to solve problems involving financing and dividend distribution decisions.

Graduate attributes

1. UC graduates are professional - employ up-to-date and relevant knowledge and skills
1. UC graduates are professional - communicate effectively
1. UC graduates are professional - use creativity, critical thinking, analysis and research skills to solve theoretical and real-world problems
1. UC graduates are professional - work collaboratively as part of a team, negotiate, and resolve conflict
1. UC graduates are professional - display initiative and drive, and use their organisation skills to plan and manage their workload
2. UC graduates are global citizens - communicate effectively in diverse cultural and social settings
3. UC graduates are lifelong learners - adapt to complexity, ambiguity and change by being flexible and keen to engage with new ideas

Prerequisites

11165 Quantitative Methods in Commerce.

Corequisites

None.

Incompatible units

6224 Business Finance PG.

Equivalent units

6392 Business Finance.

Assumed knowledge

School/college level mathematics and/or statistics, accounting or economics knowledge.