UNIT CODE: ACC301
APPLIED CORPORATE FINANCE
This unit explains the fundamentals of finance, addressing areas such as financial markets and financial decision-making. The unit stresses the modern fundamentals of corporate financial decision making with special reference to investment and distribution decisions in the context of a capital market structure and efficiency. While building upon introductory courses in accounting, economics and quantitative analysis, the unit develops distinctive conceptual frameworks and specialised tools for solving real world financial problems at both the individual and corporate level.
This includes developing valuation methods for valuing projects and securities. In addition, 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 its implications for trading strategies are discussed.
The above looks at the role of borrowers, lenders, equity, security issuers and purchasers, and the sources of value for each.
By the end of this unit, students will have developed the understanding and skills necessary to help them make informed financial management decisions.
STUDENT WORKLOAD + DELIVERY MODE
RECOMMENDED PERSONAL HOURS
TOTAL WORKLOAD HOURS
3 Hours per week
5 Hours per week
8 Hours per week
Bachelor of Business Accounting
Weekly Attendance Pattern
3 hour session
6 Credit Points
ACC205 Corporate Accounting (or equivalent)
Work Integrated Learning
MODE OF DELIVERY
This unit will be offered to students in the following mode/s:
+ Face-to-face (Domestic and International)
+ Online (Domestic)
UNIT LEARNING OUTCOMES
Describe and discuss the finance function in contemporary businesses
Compute complex time value of money calculations
Value both bonds and equities using appropriate financial models
Demonstrate financial mathematics to solve business problems and perform financial functions (such as calculating simple and compound interest and present value of money) and illustrate issues and problems relating to debt and equity
Interpret capital budgeting techniques to make investment decisions, including evaluating investment proposals, financing the chosen investment projects and deciding on the distribution of profits from operations
Discuss the financial risk and the tools and techniques businesses adopt to address it
Assessment 1: Written Assignment
Assessment 2: Online Quizzes
Assessment 3: Final Exam
Assessment 4: Engagement with the Process