Uo S Outline FINC2011 SEM2 2019 PDF

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BUSINESS SCHOOL

Unit of Study Outline Unit Code FINC2011 Unit Title Corporate Finance I Semester 2, 2019 Pre-requisite Units: (BUSS1020 or ECMT1010 or ENVX1001 or ENVX1002 or DATA1001 or ((MATH1005 or MATH1015) and MATH1115) or 6 credit points in MATH units including MATH1905) and (BUSS1040 or ECON1001 or ECON1002) Co-requisite Units: Prohibited Units: Assumed Knowledge and/or Skills: BUSS1030 Unit Coordinator: Evelyn Lai Address: Room 416, The Business School Building(H69), Darlington NSW 2008 Email: [email protected] Phone: 9351 8183 Consultation Hours: Please go to Canvas for details of staff consultation times. Class Day(s): Please go to Canvas for class times and locations. Required Text / Resources: Brealey R, S Myers, and F Allen, Principles of Corporate Finance, 12th Edition, McGraw Hill, 2017 This unit of study outline MUST be read in conjunction with The Business School Unit of Study Common Policy and implementation information that applies to every unit of study offered by the Business School (http://sydney.edu.au/business/currentstudents/policy). All assessment rules, such as standards used, penalties etc, are covered.

1. Unit of Study Information This unit provides an introduction to basic concepts in corporate finance and their application to (1) valuation of risky assets including stocks, bonds and entire corporations, (2) pricing of equity securities, and (3) corporate financial policy decisions including dividend, capital structure and risk management policies. Emphasis is placed on the application of the material studied and current practices in each of the topic areas.

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2. Program Learning Outcomes and Unit Learning Outcomes The Program Learning Outcomes for this Program are located at http://sydney.edu.au/business/about/accreditations/AoL Unit Learning Outcomes Unit Learning Outcomes

Program Learning Outcomes

On the successful completion of the Unit you should be able to: Identify and explain the basic types of financial management decisions 1. Depth of disciplinary expertise undertaken within a corporation and the role of corporate financial manager. 2. Critical thinking and problem solving 3. Communication 4. Information literacy Describe and discuss the key elements of a modern financial system, 1. Depth of disciplinary expertise including identification and discussion of the main categories of financial 2. Critical thinking and problem institutions, types of financial instruments, and functions of different solving financial markets 3. Communication 4. Information literacy Explain and apply the basic concepts underpinning the valuation of bonds 1. Depth of disciplinary expertise and common equity securities. 2. Critical thinking and problem solving 3. Communication 4. Information literacy 1. Depth of disciplinary expertise Explain and apply the Net Present Value (NPV) rule for corporate capital 2. Critical thinking and problem budgeting in realistic settings as well as appraise the merits of other solving alternative investment criteria. 3. Communication 4. Information literacy Explain and apply the concepts of expected return, security risk, diversification, portfolio risk, beta, and the role they play underpinning asset pricing models such as the CAPM.

1. Depth of disciplinary expertise 2. Critical thinking and problem solving 3. Communication 4. Information literacy

Calculate company beta, company and divisional cost of capital, and project cost of capital.

1. Depth of disciplinary expertise 2. Critical thinking and problem solving 3. Communication 4. Information literacy 1. Depth of disciplinary expertise 2. Critical thinking and problem solving 3. Communication 4. Information literacy

Discuss and explain the concept of market efficiency as well as identify instances of weak, semi-strong and strong forms of financial market efficiency.

3. Assessment Assessment Title

Assessment Type

Program Individual/ Assessment Learning Outcomes Length Group Conditions Assessed

Weight

Mid-Semester In-semester Test Exam (mid)

Individual

Compulsory

1, 2, 3, 4

60 20% minutes

Major Assignment

Assignment

Individual

Compulsory

1, 2, 3, 4

12 pages

Final Exam

Final Exam

Individual

Compulsory

1, 2, 3, 4

150 50% minutes

Academic Honesty

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30%

Due Time

Due Date

Closing Date

Mid Mid Semester Semester Exam Period Exam Period 12:00pm 28-Oct-2019 06-Nov-2019 Final Exam Period

Final Exam Period

Week 4

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Assessment details Mid-Semester Test ⚫

Task Description This is a multiple choice exam assessing the material covered in Topics 1-5 of this unit of study. The exam will be held during the Mid-Semester Exam period. Further details of the date and locations will be advised on Canvas. You will be expected to demonstrate your understanding of this material by being able to answer detailed questions on these topics. The Business School has determined that second replacement exams (both Mid-Semester and Final) will not be offered for this unit of study should a student submit two special considerations for the same exam, as this unit forms part of the professional accounting accreditation pathway. Should a student be granted a replacement exam via special consideration, and is then unable to attend or does not complete the replacement exam, any subsequent special consideration will result in a DC grade (Discontinue Without Fail).

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Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Content and range 3. Use of literature/ Knowledge of theory 4. Conclusions 5. Analysis 6. Problem solving 7. Time management/self management

Feedback - What, when and how feedback will be provided for this assessment Suggested solutions for the exam questions and general feedback will be provided on Canvas after the exam has been marked and the results released. Students who wish to view and discuss their individual responses may do so during staff consultation hours.

Major Assignment ⚫

Task Description The Major Assignment will give you an opportunity to demonstrate your understanding of the material covered in the course to date. You will be required to identify and collect data relevant to the question and then utilise analysis techniques covered in the course to resolve a problem. Marks for the assignment will be allocated on the basis of the coherence of the student's argument in response to the specifics of the question, the strength of the evidence that the student uses to support their argument and overall discussion. The Major Assignment must be submitted electronically via Turnitin in Canvas.

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Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Presentation, communication & style (written) 3. Clarity of expression (incl. accuracy, spelling, grammar, punctuation) 4. Referencing 5. Use of literature/ Knowledge of theory 6. Data/information gathering/processing 7. Conclusions 8. Analysis 9. Problem solving 10. Reflection/evaluation

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Feedback - What, when and how feedback will be provided for this assessment The Major Assignment will be marked electronically. Students will be able to view individual comments for their submission once the marking is complete. Assignment marks and feedback will be available to students within three weeks of the submission date. Students who wish to discuss their submission may do so during staff consultation hours. Students are expected to have reviewed the comments given on their Major Assignment prior to any informal appeal.

Final Exam ⚫

Task Description The Final Exam covers all of the material covered in the course. Details of the format of the Final Exam will be discussed in the final lecture.

The Business School has determined that second replacement exams (both Mid-Semester and Final) willnot be offered for this unit of study should a student submit two special considerations for the same exam, as this unit forms part of the professional accounting accreditation pathway. Should a student be granted a replacement exam via special consideration, and is then unable to attend or does not complete the replacement exam, any subsequent special consideration will result in a DC grade (Discontinue Without Fail). ⚫

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Assessment Criteria 1. Conforming with instructions (e.g. word length, font, other instructions) 2. Content and range 3. Use of literature/ Knowledge of theory 4. Context in which subject is used 5. Conclusions 6. Analysis 7. Problem solving 8. Conceptualisation 9. Time management/self management

Feedback - What, when and how feedback will be provided for this assessment The Discipline of Finance holds Final Exam review sessions for students. Details of these sessions will be announced on Canvas. Students are expected to have attended a review session and reviewed their paper before submitting any informal appeal.

4. Other Resources for Students All lectures and seminars are recorded and will be available within the LMS for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

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PASS Peer-Assisted Study Sessions (PASS) is a peer-facilitated, cooperative student support scheme aiming to improve students' academic performance by providing extra, free learning opportunities with trained student facilitators. Each session includes problem solving practice in areas directly related to understanding the unit concepts more thoroughly. PASS features small class sizes and a friendly personal approach to help you reinforce key course requirements in a collaborative, active and social learning environment. Registrations open in the first week of semester. For more information or to register, please visit: https://sydney.edu.au/students/peer-assisted-study-sessions.html Email all enquiries about the PASS program to: [email protected] Maths in Business The Business School provides a free series of workshops with student facilitators open to all students interested in mastering both basic and upper intermediate level mathematics. The program includes workshops from basic to intermediate level maths and Excel, both of which are fundamental skills for any aspiring business student.The Maths in Business progr am helps ensure high achievement throughout your business degree. Most foundational units of study require a firm understanding of maths, and this is essential to senior units in accounting, business analytics and finance. Registrations open in the first week of semester. For more information or to register, please visit: https://sydney.edu.au/students/maths-in-business.html Email all enquiries about the Maths in Business program to: [email protected]

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5. Unit Schedule Week

List of Topics

Assessments Due

1 Introduction to Finance and Financial Markets 5 Aug 2019 2 Financial Mathematics I 12 Aug 2019 3 Financial Mathematics II 19 Aug 2019 4 Valuation of Debt and Equity 26 Aug 2019 5 2 Sep 2019 6 9 Sep 2019 7 16 Sep 2019 8 23 Sep 2019 9 7 Oct 2019 10 14 Oct 2019 11 21 Oct 2019 12 28 Oct 2019 13 4 Nov 2019

Capital Budgeting I Capital Budgeting II STUDY WEEK Risk and Return Capital Asset Pricing Model Company Cost of Capital Equity Capital Markets Asset Market Efficiency and Behavioural Finance

Major Assignment Due: 28 October 2019

Business Ethics and Exam Review

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