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Corporate Finance (FNCE30002)
Undergraduate level 3Points: 12.5On Campus (Parkville)
Overview
Availability | Semester 2 |
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Fees | Look up fees |
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
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High level of development: oral communication; written communication; problem solving; interpretation and analysis; evaluation of data and other information.
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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.
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Some level of development: critical thinking; use of computer software.
Last updated: 22 January 2025