Corporate Financial Decision Making (FNCE20005)
Undergraduate level 2Points: 12.5On Campus (Parkville)
Overview
| Availability | Semester 1 Semester 2 |
|---|---|
| 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 acquisitions 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: 9 April 2025
Eligibility and requirements
Prerequisites
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| FNCE10002 | Principles of Finance |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (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 | No longer available | |
| FNCE20001 | Business Finance |
Summer Term (On Campus - Parkville)
Semester 1 (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: 9 April 2025
Assessment
Additional details
- Weekly tutorial participation, weeks 2-12, (10%)
- One 1 hour mid-semester examination, mid-semester (20%)
- One 3 hour end of semester examination, end of semester, (70%)
- Hurdle Requirement: To pass this subject students must pass the end of semester examination.
Last updated: 9 April 2025
Dates & times
- Semester 1
Principal coordinator Chander Shekhar Mode of delivery On Campus (Parkville) Contact hours 2 hours lecture, 1 hour tutorial per week Total time commitment 170 hours Teaching period 26 February 2018 to 27 May 2018 Last self-enrol date 9 March 2018 Census date 31 March 2018 Last date to withdraw without fail 4 May 2018 Assessment period ends 22 June 2018 - Semester 2
Principal coordinator Sean Pinder Mode of delivery On Campus (Parkville) Contact hours 2 hour lecture, 1 hour tutorial per week Total time commitment 170 hours Teaching period 23 July 2018 to 21 October 2018 Last self-enrol date 3 August 2018 Census date 31 August 2018 Last date to withdraw without fail 21 September 2018 Assessment period ends 16 November 2018
Time commitment details
170 hours
Last updated: 9 April 2025
Further information
- Texts
- Related Handbook entries
This subject contributes to the following:
Type Name Breadth Track Fundamentals of Finance and Accounting Breadth Track Ethics and Investing Breadth Track Real Estate and the Australian Dream Breadth Track Economics and Finance Breadth Track Your Money or Your Life - Breadth options
This subject is available as breadth in the following courses:
- Bachelor of Arts
- Bachelor of Biomedicine
- Bachelor of Design
- Bachelor of Environments
- Bachelor of Music
- Bachelor of Science
- 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.
Please note Single Subject Studies via Community Access Program is not available to student visa holders or applicants
Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.
Last updated: 9 April 2025