FINA311-18A (HAM)

Corporate Finance

20 Points

Edit Header Content
Waikato Management School
Te Raupapa
Department of Finance

Staff

Edit Staff Content

Convenor(s)

Lecturer(s)

Administrator(s)

: maxine.hayward@waikato.ac.nz

Placement Coordinator(s)

Tutor(s)

: samirbha@gmail.com

Student Representative(s)

Lab Technician(s)

Librarian(s)

: clive.wilkinson@waikato.ac.nz

You can contact staff by:

  • Calling +64 7 838 4466 select option 1, then enter the extension.
  • Extensions starting with 4, 5 or 9 can also be direct dialled:
    • For extensions starting with 4: dial +64 7 838 extension.
    • For extensions starting with 5: dial +64 7 858 extension.
    • For extensions starting with 9: dial +64 7 837 extension.
Edit Staff Content

Paper Description

Edit Paper Description Content

This paper covers capital budgeting, capital structure and working capital management. Three key important questions are answered in this course: What long-term investments should the firm take on? Where will the firm get the long-term financing to pay for the investment? How will the firm manage the everyday financial activities? The paper will also cover the effects of biases and heuristics on financial management decisions.

Edit Paper Description Content

Paper Structure

Edit Paper Structure Content

Activities
1 :Attend lectures and tutorials
2 :Read teaching materials
3 :Complete assignments
4 :Prepare for and sit test
5 :Participate in class discussion

Edit Paper Structure Content

Learning Outcomes

Edit Learning Outcomes Content

Students who successfully complete the course should be able to:

  • Learning Outcome 1
    Discuss and explain how agency theory pervades decision making in corporate finance.
    Linked to the following assessments:
  • Learning Outcome 2
    Calculate financial ratios from financial statements. Students able to determine a firm’s cash flows and know where to find the
    information to calculate cash flows.
    Linked to the following assessments:
  • Learning Outcome 3
    • Use the net present value and other investment criteria to make capital budgeting decision.
    • Understand how to determine the relevant cash flows for various types of proposed investments including how to compute depreciation expense for tax purposes.
    Linked to the following assessments:
  • Learning Outcome 4
    • Understand how to determine a firm’s cost of equity capital, cost of debt and overall cost of capital.
    • Explain the effects of financial leverage on cash flows and the cost of equity.
    Linked to the following assessments:
  • Learning Outcome 5
    Analyse a firm's capital structure by using established financial models and identify the relationship between the value of the firm and the capital structure.
    Linked to the following assessments:
  • Learning Outcome 6
    Explain dividend policy and demonstrate the relationship between dividend policy and stock value.
    Linked to the following assessments:
  • Learning Outcome 7
    Understand how to compute the operating cycle and the cash cycle and identify the differences between a flexible short-term financing policy and a restrictive one.
    Linked to the following assessments:
  • Learning Outcome 8
    • Explain and understand how exchange rates are quoted and what they mean.
    • Identify the difference between spot and forward rates.
    Linked to the following assessments:
Edit Learning Outcomes Content
Edit Learning Outcomes Content

Assessment

Edit Assessments Content

The assessment includes both individual and group components.

It is very important to keep track of the hours suggested as necessary for the various components of this Paper, including assessments. The standard of competency expected to be demonstrated through each assessment is closely related to what an average student can achieve in the hours indicated.

In practical terms this means that a short response is unlikely to indicate hours of research going into the preparation of an answer. Similary, up-to-date media based examples are essential to demonstrate an indepth understanding of concepts and techniques.

Edit Additional Assessment Information Content

Assessment Components

Edit Assessments Content

The internal assessment/exam ratio (as stated in the University Calendar) is 50:50. 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 50:50 or 0:0, whichever is more favourable for the student. The final exam makes up either 50% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Individual Assignment 1
2 Mar 2018
9:30 AM
3
  • Online: Submit through Moodle
2. Individual Assignment 2
9 Mar 2018
9:30 AM
3
  • Online: Submit through Moodle
3. Individual Assignment 3
16 Mar 2018
9:30 AM
3
  • Online: Submit through Moodle
4. Individual Assignment 4 (Project)
1 Jun 2018
4:00 PM
16
  • Online: Submit through Moodle
5. Group Assignment (video presentation)
1 Jun 2018
4:00 PM
25
  • Online: Submit through Moodle
6. Exam
50
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
Edit Assessments Content

Required and Recommended Readings

Edit Required Readings Content

Required Readings

Edit Required Readings Content

Textbook: Fundamentals of Corporate Finance by Ross, Westerfield, and Jordan. Standard 11th Edition

Edit Required Readings Content

Recommended Readings

Edit Recommended Readings Content
Business section of www.stuff.co.nz daily.
Edit Recommended Readings Content

Other Resources

Edit Other Resources Content
Links to useful online resources will be notified from time to time through Announcements.
Edit Other Resources Content

Online Support

Edit Online Support Content

PowerPoint presentations, Panopto recording of lectures, short Panopto briefings on useful issues and other useful resources will be available online and announced through Announcements.

Edit Online Support Content

Workload

Edit Workload Content

The course has:

1. 48 (4X12) contact hours (lectures and tutorials)

2. 36 (3X12) hours to read chapters assigned

3. 3 hours to work on workshop questions

4. 2 hours to prepare for Individual Assignment 1

5. 2 hours to prepare for Individual Assignment 2

6. 2 hours to prepare for Individual Assignment 3

7. 10 hours to prepare for Individual Assignment 4

8. 15 hours to prepare Group Assignment

9. 62 hours to prepare and sit Final Examination

Edit Workload Content

Linkages to Other Papers

Edit Linkages Content

Prerequisite(s)

Prerequisite papers: FINA201

Corequisite(s)

Equivalent(s)

Restriction(s)

Restricted papers: FINA510

Edit Linkages Content