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Principles of Finance (FNCE10002)

Undergraduate level 1Points: 12.5On Campus (Parkville)

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Overview

Year of offer2019
Subject levelUndergraduate Level 1
Subject codeFNCE10002
Campus
Parkville
Availability(Quotas apply)
Summer Term
Semester 1
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date

This subject introduces students to the key concepts of finance. Topics include: time-value-of-money, risk and return, present value, capital budgeting, diversification, asset allocation, capital asset pricing model, leverage, risk management and the types and sources of financing. This subject is the first in the sequence of finance subjects offered within the faculty and has a coverage and treatment of material which is suitable not only for students wishing to pursue further studies in finance but also for students from other disciplines who are interested in a single course in finance.

Intended learning outcomes

On successful completion of this subject students should be able to:

  • Use financial mathematics to solve basic financial problems
  • Apply alternative capital budgeting techniques for project evaluation purposes
  • Explain the role of risk and return in the asset allocation decision and the pricing of risky assets
  • Distinguish between the different sources of financing including short term debt, long term debt and equity
  • Discuss the issues and choices involved in a firm’s capital structure decision
  • Discuss the issues and choices involved in a firm’s distribution decision
  • Explain how options can be used to manage basic financial risks

Generic skills

On successful completion of this subject, students should have improved the following generic skills:

  • High level of development: problem solving; interpretation and analysis; critical thinking.
  • Moderate level of development: oral communication; written communication; collaborative learning; statistical reasoning; application of theory to practice; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.
  • Some level of development: team work; use of computer software.

Eligibility and requirements

Prerequisites

A study score of at least 25 in Mathematical Methods in VCE Units 3 & 4 or equivalent

or Entry into the Bachelor of Commerce or the Bachelor of Science

or Successful completion of

Code Name Teaching period Credit Points
MAST10012 Introduction to Mathematics
Summer Term
Semester 1
12.5
Introduction to Mathematics.

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
Summer Term
Semester 1
12.5
Business Finance

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

Assessment

Description

Semesters 1 and 2

  • One individual homework assignments to be assessed online not exceeding 750 words, due weeks 4 to 6 (10%)
  • Weekly tutorial participation, weeks 2 - 12, (10%)
  • One 1 hour mid-semester examination, mid-semester (20%)
  • One 2 hour end-of-semester examination, end of semester (60%)
  • Hurdle requirement: To pass this subject students must pass the end of semester examination.

Summer Semester:

  • One 1 hour mid-semester examination, mid-semester (20%)
  • One 2 hour end-of-semester examination, end of semester (80%)
  • Hurdle requirement: To pass this subject students must pass the end of semester examination.

Quotas apply to this subject

Dates & times

  • Summer Term
    Principal coordinatorRob Brown
    Mode of deliveryOn Campus — Parkville
    Contact hours6 hours of lectures per week, 3 hours of tutorials per week
    Total time commitment170 hours
    Teaching period 7 January 2019 to 10 February 2019
    Last self-enrol date14 January 2019
    Census date18 January 2019
    Last date to withdraw without fail 8 February 2019
    Assessment period ends 1 March 2019

    Summer Term contact information

  • Semester 1
    Principal coordinatorAsjeet S. Lamba
    Mode of deliveryOn Campus — Parkville
    Contact hoursSemesters 1 & 2: two hours of lecture and one hour of tutorial per week. Summer Semester: 24 hours of lectures and 12 hours of tutorials.
    Total time commitment170 hours
    Teaching period 4 March 2019 to 2 June 2019
    Last self-enrol date15 March 2019
    Census date31 March 2019
    Last date to withdraw without fail10 May 2019
    Assessment period ends28 June 2019

    Semester 1 contact information

  • Semester 2
    Principal coordinatorHoward Chan
    Mode of deliveryOn Campus — Parkville
    Contact hoursSemesters 1 & 2: two hours of lecture and one hour of tutorial per week. Summer Semester: 24 hours of lectures and 12 hours of tutorials.
    Total time commitment170 hours
    Teaching period29 July 2019 to 27 October 2019
    Last self-enrol date 9 August 2019
    Census date31 August 2019
    Last date to withdraw without fail27 September 2019
    Assessment period ends22 November 2019

    Semester 2 contact information

Time commitment details

170 hours

Additional delivery details

Please note that this subject has an enrolment quota for Semester 1 and Semester 2:

  • 1900 places only.
  • Initial self-enrolment will be provisional, places will not be guaranteed until the selection process has been run.
  • Students will be selected into the subject on a first-come, first-served basis with preference given to students undertaking the subject as a compulsory subject in their degree or a core subject in their major.
  • Students taking the subject as breadth may be withdrawn and should consider enrolling in the subject in a subsequent semester instead.

Further information

Last updated: 10 August 2019