Corporate Finance (FNCE30002)

Undergraduate level 3Points: 12.5On Campus (Parkville)

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Overview

Availability
Semester 1
Semester 2
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This subject extends the analysis of capital budgeting, capital structure, dividend policy and corporate risk management to the treatment in business finance. Topics include the effect of the dividend imputation system of taxation on dividend policy, capital structure and capital budgeting; a comprehensive analysis of corporate acquisitions and restructuring; a detailed examination of alternative funding mechanisms including leases and hybrid securities; and a discussion of current issues of interest in Australian corporate finance.

Intended learning outcomes


  • Recognise the issues pertinent to a firm in making decisions about dividend policy
  • Describe the role of derivative securities in the management of corporate risk;
  • Explain the funding alternatives available to firms;
  • Discuss the impact of taxes, bankruptcy costs, agency costs and information asymmetries upon the funding decision;
  • Apply complex techniques to capital budgeting decisions in order to account for projects with different lives;
  • Evaluate the economic consequences of takeover activity;
  • Synthesise the empirical findings with respect to the wealth impact of takeover activity in Australia;
  • Consider leasing as a funding alternative

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: 20 March 2025

Eligibility and requirements

Prerequisites

Code Name Teaching period Credit Points
FNCE20001 Business Finance
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
and one of
Code Name Teaching period Credit Points
ECOM20001 Econometrics 1
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
,
Code Name Teaching period Credit Points
ECON20003 Quantitative Methods 2
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 12.5
,
Code Name Teaching period Credit Points
MAST20005 Statistics
Semester 2 (On Campus - Parkville)
 12.5
, 620-270 Applied Statistics,
Code Name Teaching period Credit Points
MAST20004 Probability
Semester 1 (On Campus - Parkville)
 12.5
,
Code Name Teaching period Credit Points
MAST20006 Probability for Statistics
Semester 1 (On Campus - Parkville)
 12.5
, 620-261 Introduction to Operations Research (2008 or earlier),
Code Name Teaching period Credit Points
MAST20018 Discrete Maths and Operations Research
Semester 2 (On Campus - Parkville)
 12.5
or
Code Name Teaching period Credit Points
MAST20029 Engineering Mathematics
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
.

Corequisites

None

Non-allowed subjects

Students may not gain credit for both

Code Name Teaching period Credit Points
FNCE30002 Corporate Finance
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 12.5
Corporate Finance and 306-309 Corporate Finance or
Code Name Teaching period Credit Points
FNCE20005 Corporate Financial Decision Making
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 12.5
Corporate and Financial Decision Making.

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

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

  • A 3-hour end-of-semester examination (70%)
  • A mid-semester test (20%)
  • Tutorial preparation and contributions (10%)
  • To pass this subject students must pass the end of semester examination.

Last updated: 20 March 2025

Dates & times

  • Semester 1
    Principal coordinatorSean Pinder
    Mode of deliveryOn Campus (Parkville)
    Contact hoursOne x 2 hour lecture, One x 1 hour tutorial
    Teaching period26 February 2018 to 27 May 2018
    Last self-enrol date 9 March 2018
    Census date31 March 2018
    Last date to withdraw without fail 4 May 2018
    Assessment period ends22 June 2018

    Semester 1 contact information

    spinder@unimelb.edu.au

  • Semester 2
    Principal coordinatorHenny Jung
    Mode of deliveryOn Campus (Parkville)
    Contact hoursOne x 2 hour lecture, One x 1 hour tutorial
    Teaching period23 July 2018 to 21 October 2018
    Last self-enrol date 3 August 2018
    Census date31 August 2018
    Last date to withdraw without fail21 September 2018
    Assessment period ends16 November 2018

    Semester 2 contact information

    hae.jung@unimelb.edu.au

Last updated: 20 March 2025

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Related Handbook entries

    This subject contributes to the following:

    TypeName
    Breadth TrackEconomics 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.

    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: 20 March 2025