Handbook home
Corporate Financial Decision Making (FNCE20005)
Undergraduate level 2Points: 12.5Not available in 2017
Overview
Fees | Look up fees |
---|
This subject examines capital budgeting techniques, the capital structure decision, the distribution decision and corporate risk management at a more advanced level to that covered in FNCE10002 Principles of Finance. Topics include: the modigliani-miller theorems, the impact of taxes under a classical tax system, the impact of taxes under an imputation tax system, corporate acqusitions and restructuring, hybrid securities as a source of finance, techniques in raising capital.
Intended learning outcomes
On successful completion of this subject students should be able to:
- Explain the different techniques used by firms to raise equity and debt capital.
- Apply alternative capital budgeting techniques in the presence of taxes and differing project lives.
- Discuss the impact of market imperfections on a firm’s capital structure decision.
- Discuss the impact of market imperfections on a firm’s distribution decision.
- Evaluate the advantages and disadvantages of hybrid securities as a source of finance.
- Assess the economic consequences of corporate acquisition and restructuring activities.
- Explain the option-theoretic interpretation of debt and equity.
Generic skills
On successful completion of this subject, students should have improved the following generic skills:
- High level of development: oral communication; written communication; problem solving; interpretation and analysis; evaluation of data and other information.
- Moderate level of development: collaborative learning; statistical reasoning; application of theory to practice; synthesis of data and other information; accessing data and other information from a range of sources.
- Some level of development: critical thinking; use of computer software.
Last updated: 11 April 2024
Eligibility and requirements
Prerequisites
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE10002 | Principles of Finance |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
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 |
FNCE20001 | Business Finance |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
FNCE30002 | Corporate Finance |
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
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: 11 April 2024
Assessment
Additional details
- One assignment not exceeding 1000 words, due in week 7 to 9, (20%)
- One 3 hour end of semester examination, end of semester, (80%)
- To pass this subject students must pass the end of semester examination.
Last updated: 11 April 2024
Dates & times
Not available in 2017
Time commitment details
170 hours
Last updated: 11 April 2024
Further information
- Texts
Prescribed texts
There are no specifically prescribed or recommended texts for this subject.
- Related Handbook entries
This subject contributes to the following:
Type Name Breadth Track Ethics and Investing Breadth Track Fundamentals of Finance and Accounting Breadth Track Real Estate and the Australian Dream Breadth Track Your Money or Your Life Breadth Track Economics and Finance - Breadth options
This subject is available as breadth in the following courses:
- Available through the Community Access Program
About the Community Access Program (CAP)
This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
Last updated: 11 April 2024