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 306-203 Business Finance

Credit Points

12.5

HECS Band

2

Coordinator

Mr I O'Connor

Prerequisites

306-104 Accounting 1B or 306-102 Accounting Concepts and 316-205 Introductory Econometrics or 316-206 Quantitative Methods 2.

Corequisites

316-202 Intermediate Microeconomics.

Semester

1, repeat 2, Summer (view timetable)

Contact

Semester 1 and 2 - Two 1-hour lectures and a 1-hour tutorial a week; Summer Semester - One 2-hour lecture and one 2-hour tutorial/workshop two days per week for four weeks

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 1-hour mid-semester test (20%) and 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.


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Email Enquiries:          Course_Information@registrar.unimelb.edu.au