Search : Index : Faculty of Economics and Commerce : Accounting and Finance
Prev 306-202 Intermediate Financial Accounting
Next 306-204 Principles of Finance

 306-203 Business Finance

Prerequisites

306-102 Accounting Concepts or 306-104 Accounting 1B; 316-202 Intermediate Microeconomics; 316-206 Quantitative Methods 2 or 316-205 Introductory Econometrics (or equivalent subjects as approved by the Head of Department).

Semester

1 or 2

Contact

Two 1-hour lectures and a 1-hour tutorial a week

Subject Description

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, the term structure of interest rates, and the treatment of risk. Instruments of corporate funding; the theory and practice of capital structure and dividend policy decisions. An introduction to complex financial instruments such as options and futures.

Assessment

A 3-hour end-of-semester examination (80%); a mid-semester test (20%); weekly tutorial assignments of up to 80 pages in total.

Prescribed Texts

  • Van Horne J, Davis K, Lawrinsky M and Wachowitz J, Financial Management and Policy in Australia. Prentice Hall Sydney 1994.


Search : Index : Faculty of Economics and Commerce : Accounting and Finance
Prev 306-202 Intermediate Financial Accounting
Next 306-204 Principles of Finance
Status:                   Official 1998
Last Modified:            Tuesday October 21 17:10
SGML to HTML Conversion:  Information Technology Services
Authorised by:            Academic Registrar
Email Enquiries:          Course_Information@registrar.unimelb.edu.au