1. Handbook
  2. Subjects
  3. Business Finance

Business Finance (FNCE20001)

Undergraduate level 2Points: 12.5On Campus (Parkville)

You’re viewing the 2018 Handbook:
Or view archived Handbooks
You’re currently viewing the 2018 version of this subject

Overview

Availability
Summer Term
Semester 1
FeesLook up fees

Topics include basic institutional knowledge of the Australian finance sector and an introduction to the theory of pricing of risky assets, focusing on the Capital Asset Pricing Model; fundamentals of capital budgeting, including methods of allowing for inflation, and the treatment of risk; instruments of corporate funding; the theory and practice of capital structure and dividend policy decisions; and an introduction to complex financial instruments such as options and futures.

Intended learning outcomes


  • Solve basic problems in financial mathematics.
  • Discuss the basic theories underlying the pricing of risky assets;
  • Comprehend the concepts of portfolio formation;
  • Explain the fundamentals of capital budgeting, including the use of alternative criteria, allowing for inflation and the treatment of risk;
  • Analyse the issues facing managers in decisions of capital structure and dividend policy;
  • Use the features of financial derivatives to achieve particular financial outcomes.

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: 15 January 2025