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CORPFIN 2500 - Business Finance II

North Terrace Campus - Summer - 2016

The course information on this page is being finalised for 2016. Please check again before classes commence.

This course examines firm investment and distribution decisions in the context of a capital market structure and efficiency. Valuation methods are developed for valuing projects and securities. Basic portfolio theory is discussed to develop simple asset pricing models and used for determining the cost of capital for use in investment evaluation. The implications of different financing options (debt and equity) are considered, and elementary capital structure theorems are presented, in relation to which the dividend decisions are analysed. The question of market efficiency is considered, and the implications of this for trading strategies is discussed.

  • General Course Information
    Course Details
    Course Code CORPFIN 2500
    Course Business Finance II
    Coordinating Unit Adelaide Business School
    Term Summer
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Assumed Knowledge (ECON 1008 or STATS 1000) & ECON 1004 & ACCTING 1002 or ACCTING 1005 or equivalent
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Mr Sebastien Ananian-Cooper

    Course Timetable

    The full timetable of all activities for this course can be accessed from .

  • Learning Outcomes
    Course Learning Outcomes
    The aim of this course is that on completion students can:
    1. Apply core concepts of financial management, including using valuation and financial modelling techniques to make informed financial decisions.
    2. Discuss effect of limitations when using these techniques in a practical context.
    3. Recognize and discuss the implications of ethical behaviour in the context of financial management and financial planning.
    University Graduate Attributes

    No information currently available.

  • Learning Resources
    Required Resources

    Text Book: 
    Pierson, G., Brown, R., Easton, S., Howard, P., Pinder, S., Business Finance, Eleventh Edition, McGraw Hill, 2011.


    Calculator:
    If you would like to use a graphic calculator in the exam, you can, but your memory must be cleared. Graphics calculators can be helpful is checking your answers for time value of money questions.

    Recommended Resources
    Because this subject gives you the theory and tools to deal with practical financial issues, you will also benefit and find it interesting if you regularly look at the Australian Financial Review and/or the finance pages of the Advertiser or the Australian. This will fill you in with the topics and current issues in the fields of corporate finance and financial management.
    Online Learning
    This course is supported by on-line learning including:

    - Access to course materials
    - AV output of lectures shortly after the lecture is held, for learning or catch up purposes
    - Video tutorials of certain difficult problems will be uploaded to MyUni.

    - Some students decide not to attend workshops and follow the course via workshop recordings and the textbook - that is their choice. However, note that there will be 2x in-class tests where workshop attendance is required.
  • Learning & Teaching Activities
    Learning & Teaching Modes

    No information currently available.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students in this course are expected to attend and prepare for all topics prior to the scheduled class.
    Learning Activities Summary
    The schedule of lecture topics for this course is as follows:

    Topic Chapter Reference(s)
    Time Value of Money 3
    Bond and Stock Valuation 4
    Basic Project Evaluation 5
    Other Issues in Project Evaluation 6
    Portfolio Theory 7
    Financial Instruments and Institutions 8
    Sources of Finance 9, 10, 15
    Dividend Policy 11
    Capital Structure Decisions 12, 13
    Cost of Capital 14
    Market Efficiency 16
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Description Weighting Due Date
    Test 1 This test will cover the initial topics. To be confirmed Jan 12th 20% 19th Jan 2016
    Test 2 This test will cover subsequent topics. To be confirm Jan 28th 20% 4th Feb 2016
    Final Exam (3 hours) Exam to cover all topics 60% Refer to
    Access Adelaide
    Assessment Related Requirements
    Notes on Assessment
    1. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the final examination because of poor hand-writing.
    2. Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
    3. Students in this course are not permitted to take a DICTIONARY (English or English-Foreign) into the Exam.
    4. The use of a calculator in the examination will be required in this course. A graphics calculator is recommended for use in this course.
    Assessment Detail

    No information currently available.

    Submission

    Further details will be provided when the assignment is released.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through .

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

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