333-201 Business Finance

Either:

(1) 333-101 Finance 1 or

(2) An approved quantitative subject and an approved accounting subject. Approved quantitative subjects are: 316-130 Quantitative Methods 1, 620-121 Mathematics A (Advanced), 620-131 Scientific Programming and Simulation, 620-141 Mathematics A and 620-160 Experimental Design and Data Analysis. Approved accounting subjects are: 306-102 Accounting Concepts, 306-104 Accounting 1B and 306-108 Accounting Transactions and Analysis.

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, 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.

• High level of development: problem solving; interpretation and analysis; critical thinking.

• Moderate level of development: oral communication; written communication; collaborative learning; statistical reasoning; application of theory to practice; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.

• Some level of development: team work; use of computer software.

Semesters 1 and 2: A 3-hour end-of-semester examination (70%), a 1-hour mid-semester test (20%) and periodic tutorial assignments totalling not more than 1500 words (10%).

Summer Semester: A 3-hour end-of-semester examination (80%) and two tutorial assignments totalling not more than 2000 words (20%).

• G Peirson, R Brown, S Easton, P Howard and S Pinder, Business Finance. McGraw-Hill, (9th edn), 2005.