Financial Management 1
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This paper covers capital budgeting and working capital management for private and public sector organisations. Three key important questions are answered in this course: What long-term investments should the firm take on? The cost of long-term financing to pay for the investment? How will we manage the everyday financial activities of the firm?
The lectures will be delivered on campus (The lecture will be recorded via Panapto and the video will be available on Moodle after the lecture). The students are encouraged to attend the on-campus lectures and use the videos as a tool to review the contents.
Provide quick access to the whys and how of dealing with the three most important questions in finance: Capital Budgeting, Capital Structure, and Working Capital Management. Provide easy-to-understand information, including equations and examples that can be quickly applied to most problems of corporate finance.
Tutorials start in the 2nd week of B Trimester 2021. All students should attend one tutorial (one hour) per week.
The tutorials will be scheduled on-campus and online (NOTE: Not all the tutorial sections will be available and some sections will be scheduled online. Please refer to Moodle for detailed information). The students need to do their tutorial selection through Moodle. The selection will be open at 8:00 AM on 12 July 2021 and ended at 5:00 pm on 18 July 2021.
The size of any tutorial group is limited, due to the size of the venue. Once a particular tutorial group has reached this limit, it will no longer be available as an option to other students, so please make your selection as early as possible.
Mobile Phones and Cross Chats
As a courtesy to others, students are strongly urged not to disrupt lecture sessions by using mobile phones and cross-chatting during these sessions. Students are advised to disable their mobile phones during lectures.
Students who successfully complete the paper should be able to:
1. Illustrate and identify capital budgeting techniques and the analysis of evaluating projects. (LO1).
Apply financial problem-solving skills to evaluate long-term investment decisions.Linked to the following assessments:• Online Quizzes (1)• Mid-term Test (2)• Individual Assignment (4)
2.Interpret and Identify the relationship between risk and return in the context of determining cost of capital for project valuation. (LO 2).
Linked to the following assessments:• Online Quizzes (1)• Mid-term Test (2)• Individual Assignment (4)
3. Explain and compute a firm's cost of equity capital, cost of debt, and overall cost of capital. (LO 3).
Illustrate and identify the problems of using the weighted average cost of capital as a discounted rate for project valuation and the solutions.Linked to the following assessments:• Online Quizzes (1)• Final Test (3)• Individual Assignment (4)
4. Describe the venture capital market and its role in financing new businesses (LO 4).
Discuss how securities are sold and what investment bankers do to assist a firm.Linked to the following assessments:• Online Quizzes (1)• Final Test (3)• Individual Assignment (4)
5. Illustrate what financial leverage is and explain the effects of financial leverage on cash flows and the cost of capital for a firm [LO 5].
Linked to the following assessments:• Online Quizzes (1)• Final Test (3)• Individual Assignment (4)
Content/Foundational Skill: Both critical-thinking and problem-solving questions will be included in the Assignments, Midterm Test, and Final Test. The critical-thinking questions (i.e., short essay questions) will be evaluated by Communication Skills, Professionalism and Innovation. There is an expectation that students demonstrate academic integrity when they attempt the assignments in this paper. Moreover, referencing academic research articles to answer the questions will be rewarded in terms of marks (But referencing non-academic websites, such as Investopedia, will not have a reward). The design is to motivate students to achieve effective academic reading.
The critical-thinking questions also allow for the evaluation of effective academic reading by students as their answers will demonstrate their understanding of the concepts explored in the paper. And the short essay questions require students to demonstrate their business writing ability. For the problem-solving questions (i.e., calculation questions), students are required to show all their workings. These questions require students to perform calculations on data and then to demonstrate their understandings of the numbers calculated, and thus equip students with numeracy skills/using data.
Note: Typed answers or diagrams copied from the web or Panopto will be marked as zero. Turnitin (or a similar index) shouldn't be > 60%.
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.
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|
|1. Online Quizzes||
|2. Mid-term Test||
19 Aug 2021
|3. Final Test||
7 Oct 2021
|4. Individual Assignment||
26 Oct 2021
Required and Recommended Readings*
Fundamentals of corporate finance
Book by S.A. Ross; R.W. Westerfield; B.D. Jordan
12th Edition, Mc Graw Hill Education.
MindTap, providing topic features - websites, practice exercises,videos and questions on a weekly basis.
Weekly references to an online news item relating to the topics
Lecture slides, tutorial resources and related teaching materials will be available in Moodle.
Cengage App downloadable from Google play provides mobile access to Text book and MindTap support.
The course has 36 (3 X 12) contact hours (lectures and tutorials). The rest of the 150 hours expected workload in this 15-point paper can be distributed as follows: 20 hours to complete the Assignment, 35 hours to prepare for and attend the Midterm Test and 59 hours to prepare for and attend the Final Test.
Linkages to Other Papers*
Prerequisite papers: FINA201 or FINAN101
Restricted papers: FINA311, FINA510