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Corporate Financial Decision Making (FNCE20005)
Undergraduate level 2Points: 12.5On Campus (Parkville)
About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Overview
Availability | Summer Term 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: 11 April 2024
Eligibility and requirements
Prerequisites
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE10002 | Principles of Finance |
Semester 2 (On Campus - Parkville)
Summer Term (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:
FNCE10001 Finance 1 or
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE20001 | Business Finance |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
|
12.5 |
FNCE30002 | Corporate Finance | 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
- Tutorial participation – each scheduled tutorial during the entire semester (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: 11 April 2024
Dates & times
- Summer Term
Principal coordinator Stephen Easton Mode of delivery On Campus (Parkville) Contact hours 36 contact hours - 24 hours of lecture, 12 hours tutorial Total time commitment 170 hours Teaching period 7 January 2019 to 8 February 2019 Last self-enrol date 14 January 2019 Census date 18 January 2019 Last date to withdraw without fail 1 February 2019 Assessment period ends 17 February 2019 - 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 4 March 2019 to 2 June 2019 Last self-enrol date 15 March 2019 Census date 31 March 2019 Last date to withdraw without fail 10 May 2019 Assessment period ends 28 June 2019 - 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 29 July 2019 to 27 October 2019 Last self-enrol date 9 August 2019 Census date 31 August 2019 Last date to withdraw without fail 27 September 2019 Assessment period ends 22 November 2019
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 Economics and Finance Breadth Track Fundamentals of Finance and Accounting Breadth Track Real Estate and the Australian Dream Breadth Track Your Money or Your Life - 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.
- Available to Study Abroad and/or Study Exchange Students
This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.
Last updated: 11 April 2024