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:
Postgraduate
Credit points:
12
Unit code:
BAO5534

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

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.

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