792-274 Investment and Finance

Credit Points

HECS Band

Coordinator

Semester

Contact

Subject Description

Topics include income and capital growth; gearing and leverage of investment returns; business risk management; the use of futures; insurance; valuation and purchase of a rural property; loan management and repayment schedules (flat rate and reducing balance methods); sources and types of loans available; diversification of the asset base and of income and the nature of off-farm investments in real estate and the financial markets; alternatives to ownership of land for the purposes of primary production; preparation of a case to be presented to a lending authority for that finance; cash budgets, identification of peak debt/surplus periods, amount of debt servicing possible for the business, methods of remedying the cash flow deficit (including reconstruction of debts); and assessment of various investments, both on and off the farm, as a means of achieving personal investment goals.

Assessment

Internal: objective tests (10%), assignments (40%), class presentations (30%), examination (20%). External: four assignments (25% each).