209-252 Financial Management for Resource Ind II

Availability

Credit Points

HECS Band

Coordinator

Prerequisites

209-202 Financial Management for Resource Industries I.

Semester

Contact

Subject Description

The student would be able to:

• understand investment analysis/ capital budgeting in order to analyze investments;

• understand strategies for coping with risk and uncertainty in decision-making;

• be able to appraise assets for acquisition, leasing options to ownership;

• understand investment principles (both in and out of the principal industry;

• understand the taxation implications of investment and finance decisions;

• and understand the issues involved in the transfer of a business.

The subject covers areas of:

• investment analysis - capital budgets, discounted cash flow techniques, cost benefit;

• development budgets;

• asset valuation;

• land valuation;

• asset acquisition - purchase - rent - lease - syndication;

• stock market investment;

• rick management strategies - futures - insurance - quantitative decision analysis;

• advanced taxation planning and issues;

• and business transfer issues.

Assessment

One two-and-a-half-hour written examination worth 40% of final marks, two assignments equivalent to 3000 words and worth 30% of final marks each.

Prescribed Texts

• Makeham and Malcolm, The Farming Game Now. (1993), Cambridge Press.