FINAN101-21B (NWC)

Introduction to Finance

15 Points

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External Organisations
Study Group

Staff

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Convenor(s)

Ahmed Khan

Ahmed Khan
See Moodle
ahmed.khan@waikato.ac.nz

Lecturer(s)

Administrator(s)

: sally.thompson@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

Student Representative(s)

Lab Technician(s)

Librarian(s)

: yilan.chen@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, 9 or 3 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.
    • For extensions starting with 3: dial +64 7 2620 + the last 3 digits of the extension e.g. 3123 = +64 7 262 0123.
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Paper Description

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This paper introduces the basic concepts of finance. Return and risk are the two key parameters that underpin all financial decisions. The roles played by financial institutions, markets, various types of financial securities, the needs of individuals and corporations, and how the financial decisions are made are explored in this paper. Finance decisions permeate all aspects of business decisions and provide the dollar rationale for choices and evaluation of outcomes. In addition, this paper introduces you to the four aspects of finance i.e., financial institutions, financial tools, investments, and corporate finance.

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Paper Structure

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Lectures
Provide a discussion of main concepts and issues relating to specific topics. Practical examples from the financial media are often
discussed within the framework of topics covered. It is important to have preread
the set reading for the topic.

Tutorials
Tutorials are usually the second lecture of the week. They provide an opportunity to discuss the topic, using discussion and quantitative exercises. It is important to have worked through the
questions before class. 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/zoom calls.

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Learning Outcomes

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Students who successfully complete the paper should be able to:

  • 1

    Explain what the financial system is and how it works. The purpose of financial markets and how business managers and investors participate in them. They should also be able to explain the goal of the firm.

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  • 2

    Understand the concept of Time Value of money and will be able to calculate the discounted cash flows.

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  • 3

    Understand the concept of Risk and Return in Finance. The student will also be able to distinguish between various categories of risk.

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  • 4

    Understand the concept of Financial Instruments and their types. The student will also be able to do the valuation of these financial instruments.

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  • 5

    Capital Budgeting process and techniques.

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  • 6

    Understand the concept of Required Return and the Cost of Capital.

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Assessment

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Assessment Components

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The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam. The final exam makes up 0% of the overall mark.

The internal assessment/exam ratio (as stated in the University Calendar) is 100:0 or 0:0, whichever is more favourable for the student. The final exam makes up either 0% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Assignment 1
1 Aug 2021
11:00 PM
20
  • Online: Submit through Moodle
2. Midterm Test
25 Aug 2021
11:00 PM
30
  • Online: Submit through Moodle
3. Assignment 2
3 Oct 2021
11:00 PM
20
  • Online: Submit through Moodle
4. Final Test
29 Oct 2021
11:00 PM
30
  • Online: Submit through Moodle
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
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Required and Recommended Readings

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Required Readings

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Textbook: Finance Essentials, 1st Edition (2018) by Kidwell, Brimble, Mazzola, MorkelKingsbury, James
Australian edition John Wiley & Sons Australia, Ltd 2018
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Recommended Readings

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Reading list,
https://rl.talis.com/3/waikato/lists/F9A1CB5CDF106CA1D47FD6FFC12BC3B7.html?lang=enUS&login=1
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Online Support

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Lecture slides, tutorial resources, and related teaching materials will be available through Moodle.
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Workload

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This is a 15-point paper. This means you are expected to dedicate 150 learning hours in total to this paper (10 hours per point). Learning hours are a combination of direct contact hours with teachers in lectures and tutorials and self-directed hours spent studying, doing assignments, and preparing for tests.
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Linkages to Other Papers

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There is a significant interrelationship between finance and nonfinance areas. First, finance and accounting are related since accounting information is needed for financial decisions. Second, finance and economics are related because economic activity and policy affect financial decisions, and vice versa. Finance and management are related because the management decisions, such as setting salary, hiring new staff, and paying bonuses must be coordinated with finance. Finance and information systems are related because finance decisions rely on the information. Last but not least, there are the four p's of marketing, product, price, place, and promotion. Clearly, the price and promotion, e.g., advisement is related to finance.
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