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The study of this paper consists of two fundamental and interrelated areas: Corporate finance and investment. Corporate finance deals with decisions that all firms make concerning their cash flows. The duties encountered in corporate finance include capital budgeting, capital structure and working capital management. The area of investment focuses on the decisions made by businesses and individuals as they choose securities for their investment portfolios. The major functions in the investment area range from determining the values, risks and returns associated with financial assets, such as stocks and bonds.
Provide quick access to the whys and hows of dealing with the questions in finance. Provide easy-to-understand information, including equations and examples that can be quickly applied to the problems of finance.
All students should attend one tutorial (one hour) per week.
Mobile Phones and Cross Chats
As a courtesy to others, students are strongly urged not to disrupt lecture sessions by using the mobile phones and cross chatting during these sessions. Students are advised to disable their mobile phones during lectures.
Students who successfully complete the course should be able to:
Introduction to Finance [LO1]
Understand what Finance is and realize the two general areas of Finance: Corporate Finance and Investment. Understand the three key concepts in finance: Risk, liquidity and valuation and learn how these concepts are key in making finance decisions.Linked to the following assessments:
Analysis of financial statements [LO2]
Realize how to determine a firm’s cash flows. Be aware of where to find the information to calculate cash flow. Understand the
differences between accounting income and cash flow.Linked to the following assessments:
Time and money [LO3]
Explain and understand the time value of money. Realize why the cash flows at different time points could not be compared and
aggregated directly.Linked to the following assessments:
Valuation of financial assets [LO4]
Understand how to value bond and stock, and realize the differences between them.Linked to the following assessments:
Capital budgeting techniques [LO5]
Learn how to use the net present value and other investment criteria to make capital budgeting decision.Linked to the following assessments:
The internal assessment/exam ratio (as stated in the University Calendar) is 1:1. There is no final exam. The final exam makes up 50% of the overall mark.
The internal assessment/exam ratio (as stated in the University Calendar) is 1:1 or 0:0, whichever is more favourable for the student. The final exam makes up either 50% or 0% of the overall mark.
Error: Assessment components must add up to 100%
At least one Assessment Component needs to be entered
|Component Description||Due Date||Time||Percentage of overall mark||Submission Method||Compulsory|
27 Mar 2017
|2. Midterm test||
28 Apr 2017
Required and Recommended Readings*
Textbook: Fundamentals of Corporate Finance by Ross, Westerfield, and Jordan.
Textbook: Corporate Finance by Ross, Westerfield and Jaffe.
Lecture slides, tutorial resources and related teaching materials will be available in MyWeb.
The course has 48 (4X12) contact hours (lectures and tutorials). The rest of the 200 hours expected workload in this 20-point paper can be distributed as follows: 30 hours to complete the Assignment, 52 hours to prepare for and attend the Midterm Test and 70 hours to prepare for and attend the Final Exam.
Linkages to Other Papers*
There is a significant interrelationship between finance and non-finance areas. First, finance and accounting are related since accounting information is needed for finance decision. Second, finance and economics are related because economic activity and policy affect finance decisions, and vice versa. Finance and management are related because the management decisions, such as setting salary, hiring new staff and paying bonus must be coordinated with finance. Finance and information system are related because finance decisions rely on information. Last but not least, there are four ps of marketing, product, price, place and promotion. Clearly, the price and promotion, e.g., advisement are related to finance.