Corporate Finance (FNCE30002)
Undergraduate level 3Points: 12.5On Campus (Parkville)
Overview
| Availability | Semester 2 |
|---|---|
| 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
-
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 |
|---|---|---|---|
| FNCE20001 | Business Finance |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
|
12.5 |
| 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 |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| MAST20005 | Statistics |
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| MAST20004 | Probability |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| MAST20006 | Probability for Statistics | Semester 1 (On Campus - Parkville) |
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| MAST20018 | Discrete Maths and Operations Research | Semester 2 (On Campus - Parkville) |
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| MAST20029 | Engineering Mathematics |
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
Summer Term (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 2 (On Campus - Parkville) |
12.5 |
| Code | Name | Teaching period | Credit Points |
|---|---|---|---|
| FNCE20005 | Corporate Financial Decision Making |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
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: 9 April 2025
Assessment
Additional details
- A 3-hour end-of-semester examination (80%)
- A mid-semester test (20%)
- To pass this subject students must pass the end of semester examination.
Last updated: 9 April 2025
Dates & times
- Semester 2
Last updated: 9 April 2025
Further information
- Texts
- Related Handbook entries
- 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
Last updated: 9 April 2025