FINAN305-19B (HAM)

Financial Management 2

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Lecturer(s)

Administrator(s)

: denise.martin@waikato.ac.nz

Placement Coordinator(s)

Tutor(s)

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, 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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As mentioned earlier, this paper builds on FINAN200. It examines a firm's Capital Structure Policy, Dividend and Payout Policy, Short-Term Financial management. It also covers few advanced topics like behavioral finance and mergers and acquisitions.

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Paper Structure

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Lectures

This paper course is organised as a lecture, but throughout the course, special emphasis is put on discussion and interaction with the students as well as exercises and case studies. Using key questions, examples and exercises shall help the students to understand the learning material in a varied and application-oriented way.

Teaching and Learning Approach

I aspire to see you all learn and want to learn more. I trust and believe that learning becomes easier if your desire to learn is strong. Well begun is half done. Therefore, active participation during class and rework is a crucial part of the teaching and learning concept and good preparation for the final examination at the end of the semester.

Tutorial Sessions

Students should select one hour from the given slots. Tutorials start in the second week of the semester.

Class Room Decorum

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.
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Learning Outcomes

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Students who successfully complete the course should be able to:

  • Financial Leverage, Capital Structure Policy and Dividend Policy Decisions
    Illustrate the effects of leverage on risk and return and explain the issues surrounding dividend policy decisions (LO1)
    Linked to the following assessments:
  • Short-term Financial Planning and Management

    Explain and Summarise the essentials of short-term financial planning (LO2).

    Linked to the following assessments:
  • International Corporate Finance
    Discuss the essentials of exchange rates and their determinants (LO3)
    Linked to the following assessments:
  • Behavioral Finance

    Describe how behavior's such as overconfidence, over optimism, and confirmation bias can affect decision making and show how the use of heuristics can lead to sub-optimal financial decisions (LO4).

    Linked to the following assessments:
  • Mergers and Acquisitions
    Estimate the gains from the merger or acquisition
    (LO5)
    Linked to the following assessments:
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Assessment

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Internal Assessments are by the components as listed below and the Exam is worth (50%).
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Assessment Components

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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. Test
7 Aug 2019
2:00 PM
15
  • Hand-in: In Lab
2. Assignment
13 Sep 2019
5:00 PM
15
  • Online: Submit through Moodle
3. Debate
18 Sep 2019
2:00 PM
15
  • In Class: In Lecture
4. Class Room Engagement
1 Oct 2019
5:00 PM
5
  • Online: Submit through Moodle
5. Exam
50
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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Recommended Readings

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Refer to Waikato Reading List link.

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Other Resources

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Refer to the Moodle for the detailed list of suggested readings
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Online Support

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

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Workload

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The course has 48 (4 X 12) contact hours (lectures and tutorials). The rest of the 150 hours expected workload in this 15-point paper can be distributed between the test, assignment, debate, class room engagement and exam.

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Linkages to Other Papers

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This paper builds upon the knowledge of FINAN101; FINAN200 and has a relationship with the FINAN202 and FINAN203. Further, 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.

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Prerequisite(s)

Prerequisite papers: FINA201 or FINAN200

Corequisite(s)

Equivalent(s)

Restriction(s)

Restricted papers: FINA311 and FINA510

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