Handbook

FNCE10002 Principles of Finance

Credit Points: 12.5
Level: 1 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2017:

Semester 1, Parkville - Taught on campus.Show/hide details
Pre-teaching Period Start not applicable
Teaching Period 27-Feb-2017 to 28-May-2017
Assessment Period End 23-Jun-2017
Last date to Self-Enrol 10-Mar-2017
Census Date 31-Mar-2017
Last date to Withdraw without fail 05-May-2017

Semester 2, Parkville - Taught on campus.Show/hide details
Pre-teaching Period Start not applicable
Teaching Period 24-Jul-2017 to 22-Oct-2017
Assessment Period End 17-Nov-2017
Last date to Self-Enrol 04-Aug-2017
Census Date 31-Aug-2017
Last date to Withdraw without fail 22-Sep-2017

Please note that the Semester 1 offering of this subject has an enrolment quota:

  • 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  • Students taking the subject as breadth may be withdrawn and should consider enrolling in the subject for Semester 2 instead.


Timetable can be viewed here.
For information about these dates, click here.
Time Commitment: Contact Hours: Semesters 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 Commitment:

170 hours

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 Successful completion of MAST10012 Introduction to Mathematics.

Corequisites: None
Recommended Background Knowledge: None
Non Allowed Subjects:

Not available to students who are enrolled in or who have previously completed FNCE10001 Finance 1 or FNCE20001 Business Finance

Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Coordinator

Assoc Prof Asjeet S. Lamba, Assoc Prof Howard Chan

Contact

Sem 1: asjeet@unimelb.edu.au

Sem 2: chanhw@unimelb.edu.au

Subject Overview:

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.

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
Assessment:
  • One indiviudal 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.
Prescribed Texts: None
Breadth Options:

This subject potentially can be taken as a breadth subject component for the following courses:

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
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.

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