This unit  introduces students to the theory and application of business finance. With the emphasis on publicly listed companies, topics covered include; the corporate objective of management; investment evaluation models; valuation of equity and debt instruments; issues in risk and return; portfolio theory; asset pricing models; cost of capital and issues in capital structure. The unit of study provides students the necessary knowledge and skills in making business financial decisions to maximise firm value.

Unit details

Study level:
Credit points:
Unit code:

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Critically evaluate and apply quantitative business finance techniques and methodologies for valuing financial instruments;  
  2. Demonstrate a thorough conceptual understanding of portfolio theory and its application to price risky assets;  
  3. Estimate the appropriate cost of capital for investment appraisal purposes;  
  4. Critically evaluate and apply various capital structure theories in making business financing decisions;  
  5. Critically evaluate and apply firms' investment project decisions using capital budgeting techniques; and  
  6. Compose and effectively communicate analyses and recommendations to assist in financial decision-making throughout the corporate cycle.  


Assessment type Description Grade
Test Practical and Theoretical Short Answer Questions 10%
Test Practical and Theoretical Short Answer Questions 20%
Case Study Group Assignment – Case study Analysis 20%
Examination Final Examination 50%

Required reading

Principles of Managerial Finance (15th ed., Global Edition).
Zutter, C. J., & Smart, S. B. (2019).
Harlow, England: Pearson.

Where to next?

As part of a course

This unit is studied as part of the following courses. Refer to the course page for information on how to apply for the course.

Study a single unit

This unit may be available as a single unit of study.

Find out more about how to apply for single units of study at VU.

VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.