FINANCIAL MANAGEMENT

FIN5FMA

2015

Credit points: 15

Subject outline

This subject is focused on introducing students to the key goals and decision-making responsibilities of businesses and corporations. Students will develop a thorough and advanced knowledge of the short and long term investment and financing decisions of a firm, including project evaluation and capital budgeting decisions; leasing, replacement and real option modelling; the relative merits of debt, equity, hybrid and derivative forms of capital and evaluation of the capital raising process; theoretical and practical decision-making relating to corporate capital structure and dividend policy decisions; the effect of leverage, taxes and other imperfections on the cost of capital and the value of the firm; and working capital and asset management. Related, and extension, topics that may also be considered include mergers and acquisitions, corporate restructuring and corporate governance applications.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorMichael Li

Available to Study Abroad StudentsNo

Subject year levelYear Level 5 - Masters

Exchange StudentsNo

Subject particulars

Subject rules

Prerequisites Accounting and Finance for Sustainable Value Creation (BUS5AFS)

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Learning resources

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFundamentals of Financial ManagementPrescribed13th Edition by Eugene F. Brigham and Joel F. Houston, 2013(SOUTH-WESTERN CENGAGE LEARNING),

Graduate capabilities & intended learning outcomes

01. Critically evaluate and analyse the suitability of specific corporate decision-making and transactions for firms and their impact in firm valuation and shareholder wealth.

Activities:
Research project
Related graduate capabilities and elements:
Critical Thinking (Critical Thinking)

02. Demonstrate comprehension of the accounting, financial and economic theory on which corporate decision-making processes and the concept of firm valuation are founded.

Activities:
Lecture participation, tutorial class work, essay task
Related graduate capabilities and elements:
Writing (Writing)

03. Employ practical and quantitative skills to manage the debt and equity capital of a firm, and to value these capital components and the overall firm in this context.

Activities:
Tutorial class work, research project
Related graduate capabilities and elements:
Inquiry/ Research (Inquiry/ Research)

04. Demonstrate understanding of the operating and financial structures of business organisations and how these impact on the performance and valuation of these organisations.

Activities:
Lecture participation, tutorial class work and assessment tasks
Related graduate capabilities and elements:
Inquiry/ Research (Inquiry/ Research)

05. Structure and present an argument to a decision-making body (such as a CEO or Board of directors) recommending a specific corporate transaction or a restructuring or strategy action

Activities:
Research project
Related graduate capabilities and elements:
Writing (Writing)
Inquiry/ Research (Inquiry/ Research)
Critical Thinking (Critical Thinking)

Subject options

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Start date between: and    Key dates

Melbourne, 2015, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorAngela Lou

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 10 - 22
One 1.0 hours tutorial other recurrence on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
One 1,000-word essay, 3 tutorial assessment tasks or one multiple-choice mid-semester examination15 02, 04
One 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject.60 02, 03
One 4,000-word group project25 01, 05

Melbourne, 2015, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Tutorial Week: 31 - 43
One 1.0 hours tutorial other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Lecture Week: 31 - 43
One 2.0 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
One 1,000-word essay, 3 tutorial assessment tasks or one multiple-choice mid-semester examination15 02, 04
One 3-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject.60 02, 03
One 4,000-word group project25 01, 05