333-201 Business Finance

Note

During the Summer Semester, this subject is only offered on a fee-paying basis. See your home faculty for a fee schedule.

Credit Points

12.5

HECS Band

2

Coordinator

Mr I O'Connor

Prerequisites

306-104 Accounting 1B or 306-102 Accounting Concepts, and 316-130 Quantitative Methods 1.

Semester

1, repeat 2, Summer (view timetable)

Contact

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

Subject Description

Topics include 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; and an introduction to complex financial instruments such as options and futures.

Assessment

A 3-hour end-of-semester examination (70%), a 1-hour mid-semester test (20%) and weekly tutorial assignments totalling not more than 1500 words (10%).

Prescribed Texts

  • G Peirson, R Brown, S Easton and P Howard, Business Finance. McGraw-Hill, 8th edn, 2002.


Status:                   Official 2003
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