Principles of Finance (FNCE10002)

Undergraduate level 1Points: 12.5On Campus (Parkville)

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Overview

Availability(Quotas apply)
Semester 1
Semester 2
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This subject introduces students to the key concepts of finance. Topics include: time-value-of-money, risk and return, present value, capital budgeting, diversification, asset allocation, capital asset pricing model, leverage, risk management and the types and sources of financing. This subject is the first in the sequence of finance subjects offered within the faculty and has a coverage and treatment of material which is suitable not only for students wishing to pursue further studies in finance but also for students from other disciplines who are interested in a single course in finance.

Intended learning outcomes

On successful completion of this subject students should be able to:



  • Use financial mathematics to solve basic financial problems
  • Apply alternative capital budgeting techniques for project evaluation purposes
  • Explain the role of risk and return in the asset allocation decision and the pricing of risky assets
  • Distinguish between the different sources of financing including short term debt, long term debt and equity
  • Discuss the issues and choices involved in a firm’s capital structure decision
  • Discuss the issues and choices involved in a firm’s distribution decision
  • Explain how options can be used to manage basic financial risks

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • High level of development: problem solving; interpretation and analysis; critical thinking.
  • Moderate level of development: oral communication; written communication; collaborative learning; statistical reasoning; application of theory to practice; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.
  • Some level of development: team work; use of computer software.

Last updated: 20 March 2025

Eligibility and requirements

Prerequisites

A study score of at least 25 in Mathematical Methods in VCE Units 3 & 4 or equivalent

or Entry into the Bachelor of Commerce

or Successful completion of

Code Name Teaching period Credit Points
MAST10012 Introduction to Mathematics
Summer Term (Online)
Semester 1 (On Campus - Parkville)
 12.5
Introduction to Mathematics.

Corequisites

None

Non-allowed subjects

Not available to students who are enrolled in or who have previously completed

Code Name Teaching period Credit Points
FNCE10001 Finance 1
Summer Term (On Campus - Parkville)
 12.5
Finance 1 or
Code Name Teaching period Credit Points
FNCE20001 Business Finance
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 12.5
Business Finance

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 20 March 2025

Assessment

Additional details

  • One individual homework assignment to be assessed online not exceeding 750 words, due weeks 4 to 6 (10%)
  • Weekly tutorial participation, weeks 2 - 12, (10%)
  • One 1 hour mid-semester examination, mid-semester (20%)
  • One 2 hour end-of-semester examination, end of semester (60%)
  • Hurdle requirement: To pass this subject students must pass the end of semester examination.

Last updated: 20 March 2025

Quotas apply to this subject

Dates & times

  • Semester 1
    Principal coordinatorAsjeet S. Lamba
    Mode of deliveryOn Campus (Parkville)
    Contact hoursSemesters 1 & 2: two hours of lecture and one hour of tutorial per week. Summer Semester: 24 hours of lectures and 12 hours of tutorials.
    Total time commitment170 hours
    Teaching period27 February 2017 to 28 May 2017
    Last self-enrol date10 March 2017
    Census date31 March 2017
    Last date to withdraw without fail 5 May 2017
    Assessment period ends23 June 2017

    Semester 1 contact information

    Sem 1: asjeet@unimelb.edu.au

    Sem 2: chanhw@unimelb.edu.au

  • Semester 2
    Principal coordinatorHoward Chan
    Mode of deliveryOn Campus (Parkville)
    Contact hoursSemesters 1 & 2: two hours of lecture and one hour of tutorial per week. Summer Semester: 24 hours of lectures and 12 hours of tutorials.
    Total time commitment170 hours
    Teaching period24 July 2017 to 22 October 2017
    Last self-enrol date 4 August 2017
    Census date31 August 2017
    Last date to withdraw without fail22 September 2017
    Assessment period ends17 November 2017

    Semester 2 contact information

    Sem 1: asjeet@unimelb.edu.au

    Sem 2: chanhw@unimelb.edu.au

Time commitment details

170 hours

Additional delivery details

Please note that this subject has an enrolment quota for Semester 1 and Semester 2:

  • 1900 places only.
  • Initial self-enrolment will be provisional, places will not be guaranteed until the selection process has been run.
  • Students will be selected into the subject on a first-come, first-served basis with preference given to students undertaking the subject as a compulsory subject in their degree or a core subject in their major.
  • Students taking the subject as breadth may be withdrawn and should consider enrolling in the subject in a subsequent semester instead.

Last updated: 20 March 2025

Further information

Last updated: 20 March 2025