Overview
This unit covers the basic concepts, tools and techniques that financial managers use in the contemporary business context. You will learn about the principle functions of financial managers, the different business structures, and capital markets and financial securities. You will also examine the valuation of investments and portfolio, project evaluation, the cost of capital, market efficiency, risk management, basics of foreign exchange and international financial market, and dividend policy. Completion of the unit will raise your awareness on how businesses and corporate organisations decide on short and long term investment decisions, and the global and domestic economic and contextual factors which influence these decisions.
Details
Pre-requisites or Co-requisites
ECON11026 or ECON11030 or STAT11048 or MGMT11169
Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).
Offerings For Term 3 - 2024
Attendance Requirements
All on-campus students are expected to attend scheduled classes - in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).
Recommended Student Time Commitment
Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.
Class Timetable
Assessment Overview
Assessment Grading
This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of 'pass' in order to pass the unit. If any 'pass/fail' tasks are shown in the table above they must also be completed successfully ('pass' grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the 'assessment task' section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University's Grades and Results Policy for more details of interim results and final grades.
All University policies are available on the CQUniversity Policy site.
You may wish to view these policies:
- Grades and Results Policy
- Assessment Policy and Procedure (Higher Education Coursework)
- Review of Grade Procedure
- Student Academic Integrity Policy and Procedure
- Monitoring Academic Progress (MAP) Policy and Procedure - Domestic Students
- Monitoring Academic Progress (MAP) Policy and Procedure - International Students
- Student Refund and Credit Balance Policy and Procedure
- Student Feedback - Compliments and Complaints Policy and Procedure
- Information and Communications Technology Acceptable Use Policy and Procedure
This list is not an exhaustive list of all University policies. The full list of University policies are available on the CQUniversity Policy site.
Feedback, Recommendations and Responses
Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.
Feedback from Student & Self
Can add more examples with difficulties similar to the final test.
Introduce more final test-like questions in study materials.
Feedback from Student & Self
Can reduce content amount in some weeks.
Reduction of some content or more streamlining of the content is to be explored while maintaining the same quality and standards.
- Identify and explain the critical problems corporate financial managers encounter and solve
- Apply finance theories and synthesise related information for corporate valuations, capital structure analysis, financial decision making, and dividend policy formulation
- Analyse and form investment decisions using sound capital budgeting techniques
- Analyse risk and return for financial decision making
- Explain the valuation of financial securities (bonds, shares etc.) and the role of efficient markets.
Alignment of Assessment Tasks to Learning Outcomes
| Assessment Tasks | Learning Outcomes | ||||
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| 1 - Practical and Written Assessment - 30% | |||||
| 2 - Online Quiz(zes) - 10% | |||||
| 3 - Online Test - 60% | |||||
Alignment of Graduate Attributes to Learning Outcomes
| Graduate Attributes | Learning Outcomes | ||||
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | |
| 1 - Communication | |||||
| 2 - Problem Solving | |||||
| 3 - Critical Thinking | |||||
| 4 - Information Literacy | |||||
| 5 - Team Work | |||||
| 6 - Information Technology Competence | |||||
| 7 - Cross Cultural Competence | |||||
| 8 - Ethical practice | |||||
| 9 - Social Innovation | |||||
| 10 - First Nations Knowledges | |||||
| 11 - Aboriginal and Torres Strait Islander Cultures | |||||
Textbooks
Fundamentals of Corporate Finance
- 4th edition (2020)
- Authors: Parrino, Kidwell, Au Yong, Dempsey, Morkel-Kingsbury, Ekanayake, James & Murray
- John Wiley and Sons
- Milton Milton , QLD , Australia
- ISBN: 9780730382577
- Binding: Other
IT Resources
- CQUniversity Student Email
- Internet
- Unit Website (Moodle)
- Different online resources indicated on Moodle.
- MS Office (Word, Excel, PowerPoint) or compatible software
All submissions for this unit must use the referencing style: American Psychological Association 7th Edition (APA 7th edition)
For further information, see the Assessment Tasks.
t.imam@cqu.edu.au
Week 1: Introduction to Finance and Time Value of Money [TVM]
Begin Date: 04 Nov 2024Module/Topic
- Legal forms of business
- Role of financial managers
- Business ethics
- Other introductory issues
- Time value of money
Chapter
Ch 1 & part of Ch 5
Events and Submissions/Topic
Week 2: Cash Flow and Valuation
Begin Date: 11 Nov 2024Module/Topic
- Time value of money (contd.)
- Multiple cash flows
- Annuity and perpetuity
Chapter
part of Ch 5 & part of Ch 6
Events and Submissions/Topic
Week 3: Risk and Return
Begin Date: 18 Nov 2024Module/Topic
- Concepts of risk and return for an asset
- Concepts of risk and return for a portfolio
- Diversification
- Systematic & unsystemtic risks
Chapter
part of Ch 7
Events and Submissions/Topic
Week 4: Bond Valuation and Loans
Begin Date: 25 Nov 2024Module/Topic
- Concepts of debt securities
- Term loans and loan amortisation
- Bonds and different types of bonds
- Yield to maturity, realised yield, and effective annual yield
- Bond theorems
Chapter
part of Ch 6 & Ch 8
Events and Submissions/Topic
Week 5: Share and Portfolio Valuation, and Risk
Begin Date: 02 Dec 2024Module/Topic
- Concepts of equity securities
- Capital Asset Pricing Model (CAPM) for asset and portfolio evaluation
- Share valuation issues and models
- Secondary market
- Ordinary shares and preference shares
Chapter
part of Ch 7 & Ch 9 & Extra resources on Moodle
Events and Submissions/Topic
Week 6: Capital Budgeting Basics & Capital Budgeting for Foreign Investment
Begin Date: 09 Dec 2024Module/Topic
- Project valuation and capital budgeting concepts
- Various capital budgeting measures and their relative strengths and weaknesses
- Capital rationing
- Capital budgeting for a foreign investment and relevant foreign currency concepts
Chapter
Ch 10 & Extra resources on Moodle
Events and Submissions/Topic
Week 7: Advanced Issues in Capital Budgeting
Begin Date: 16 Dec 2024Module/Topic
- Estimation of cash flows for capital budgeting and relevant issues
- Capital budgeting for projects with different lives
- Risk estimations in capital budgeting
- Various approaches for risk analysis
- Advanced details on capital rationing
Chapter
Ch 11 & Ch 12
Events and Submissions/Topic
Assessment 1 is due in Week 7 Friday
Knowledge and Valuation Assessment Due: Week 7 Friday (20 Dec 2024) 11:59 pm AEST
Vacation Week
Begin Date: 23 Dec 2024Module/Topic
Chapter
Events and Submissions/Topic
Vacation Week
Begin Date: 30 Dec 2024Module/Topic
Chapter
Events and Submissions/Topic
Week 8: Cost of Capital
Begin Date: 06 Jan 2025Module/Topic
- Concepts of cost of capital
- Weighted average cost of capital (WACC): its use and limitations
Chapter
Ch 13
Events and Submissions/Topic
Week 9: Raising Capital
Begin Date: 13 Jan 2025Module/Topic
- Funding sources for businesses and startups
- Concepts concerning Initial Public Offering
Chapter
Ch 15
Events and Submissions/Topic
Week 10: Capital Structure Policy
Begin Date: 20 Jan 2025Module/Topic
- Implications of capital structure decisions
- M&M propositions
- Trade-off theory and pecking order theory
Chapter
Ch 16
Events and Submissions/Topic
Assessment 2 (Online quiz) opens on Week 10 Friday 9 AM AEST
Week 11: Dividend Policy & Contemporary Issues
Begin Date: 27 Jan 2025Module/Topic
- Dividends and relevant concepts
- Dividend policies and implications
- Share buyback, bonus shares, split shares, and other relevant concepts
- Contemporary finance issues
Chapter
Ch 17 & Extra resources
Events and Submissions/Topic
Week 12: Revision
Begin Date: 03 Feb 2025Module/Topic
No new topic
Chapter
All concepts covered
Events and Submissions/Topic
Assessment 2 (Online quiz) closes on Week 12 Monday 11:59 PM AEST
Online Quiz Due: Week 12 Monday (3 Feb 2025) 11:59 pm AEST
Exam Week
Begin Date: 10 Feb 2025Module/Topic
Chapter
Events and Submissions/Topic
1 Practical and Written Assessment
The assessment can be submitted individually or in a group of a maximum of two students. The assessment constitutes a set of mathematical problems and associated theory and discussion questions and case studies (real-world scenario, or hypothetical or virtual world scenario). The contents involve weeks 1-5 (inclusive). The assessment aims at both judging your competence regarding the topics encountered and making you familiar with the applications of these concepts in real-world information processing. Further details, including the specific questions to be answered and any additional requirements, will be provided within the Assessment block in Moodle by the end of Week 1.
Some points to note:
- The explanations in discussion questions should aim at one brief paragraph or multiple paragraphs depending upon the question and marks allocated. If you use sources to support your decisions, please use in-text referencing to acknowledge the source. However, you are not expected to reference the formulae.
- You should submit as a doc/docx/rtf format through the submission link on Moodle.
- Some questions may involve Excel or spreadsheet based modelling and for which you should also upload the respective .xls/.xlsx or a compatible format file.
More information will be provided on Moodle.
Week 7 Friday (20 Dec 2024) 11:59 pm AEST
Online submission through Moodle
Week 10 Monday (20 Jan 2025)
Further information on specific return dates will be advised on Moodle.
The assessment judges your ability to solve the set problems and discuss the relevant issues, further to your capability to use online resources. Marks allocated for this assignment consider the following aspects:
- Completeness
- Accuracy of the calculations
- Quality of explanations
- Presentation
- Proper use of references
- Model construction (if any) using Microsoft Excel
More details are on Moodle.
- Identify and explain the critical problems corporate financial managers encounter and solve
- Analyse risk and return for financial decision making
- Explain the valuation of financial securities (bonds, shares etc.) and the role of efficient markets.
2 Online Quiz(zes)
Complete an online quiz through the relevant link in Moodle. The quiz will open on Friday of Week 10 at 9 am (AEST) and will close on Monday of Week 12 at 11:59 pm (AEST). It consists of questions relating to weeks 6-10 inclusive and covers both theoretical concepts and math problem-solving. You have 65 minutes to complete this online quiz. You will be unable to re-open the quiz after the indicated dates and times. If you experience a computer problem you cannot solve, you are required to contact the unit coordinator by email at the earliest. Further details on the quiz structure will be advised on Moodle by the end of Week 9.
1
Other
Week 12 Monday (3 Feb 2025) 11:59 pm AEST
You may attempt the quiz at any time after it is open, so long as it is completed before the due time. Once you open the quiz, you would need to finish it since there is only one attempt available. Further instructions will be provided on Moodle.
Week 12 Tuesday (4 Feb 2025)
Your online quiz results will be automatically generated and displayed when the quiz is closed.
You will be assessed on your problem-solving and critical thinking skills. The nature of this assessment item indirectly assesses your information technology competence.
- Apply finance theories and synthesise related information for corporate valuations, capital structure analysis, financial decision making, and dividend policy formulation
- Analyse and form investment decisions using sound capital budgeting techniques
3 Online Test
This is the major assessment for this unit and examines the whole unit. It is currently structured as an open-book online test. The assessment will involve both theory and math questions, and the questions may test your ability to reflect on and integrate multiple aspects covered in the unit. Further specific details concerning its structure, timing, and rules will be advised on Moodle by the end of Week 10.
Exam Week Monday (10 Feb 2025) 11:59 pm AEST
The test is expected to occur during the exam week. The specific date/time will be advised on Moodle in due course.
As this is a final assessment, no feedback will be issued before grade certification.
Accuracy, completeness, and presentation style will be the basic expectations, with evidence of insightful mastery of the materials for higher grades.
- Identify and explain the critical problems corporate financial managers encounter and solve
- Apply finance theories and synthesise related information for corporate valuations, capital structure analysis, financial decision making, and dividend policy formulation
- Analyse and form investment decisions using sound capital budgeting techniques
- Analyse risk and return for financial decision making
- Explain the valuation of financial securities (bonds, shares etc.) and the role of efficient markets.
As a CQUniversity student you are expected to act honestly in all aspects of your academic work.
Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.
When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.
Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.
As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.
What is a breach of academic integrity?
A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.
Why is academic integrity important?
A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.
Where can I get assistance?
For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.
What can you do to act with integrity?
