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Business Finance (FNCE20001)

Undergraduate level 2Points: 12.5Campus: Parkville

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Overview

Year of offer2017
Subject levelUndergraduate Level 2
Subject codeFNCE20001
Mode of delivery
On Campus — Parkville
Availability
Summer Term
Semester 1
Semester 2
FeesSubject EFTSL, Level, Discipline & Census Date

Topics include basic institutional knowledge of the Australian finance sector and an introduction to the theory of pricing of risky assets, focusing on the Capital Asset Pricing Model; fundamentals of capital budgeting, including methods of allowing for inflation, and the treatment of risk; instruments of corporate funding; the theory and practice of capital structure and dividend policy decisions; and an introduction to complex financial instruments such as options and futures.

Learning outcomes

  • Solve basic problems in financial mathematics.
  • Discuss the basic theories underlying the pricing of risky assets;
  • Comprehend the concepts of portfolio formation;
  • Explain the fundamentals of capital budgeting, including the use of alternative criteria, allowing for inflation and the treatment of risk;
  • Analyse the issues facing managers in decisions of capital structure and dividend policy;
  • Use the features of financial derivatives to achieve particular financial outcomes.

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.

Last updated: 30 March 2017