FUNDAMENTALS OF FINANCE

FIN1FOF

2020

Credit points: 15

Subject outline

Finance defines the process by which individuals and businesses raise and manage funds. As such financial skills are a prerequisite for success not only if you are seeking a career in banking and finance, but equally for success in any business career.  Indeed,financial literacy is a necessary skill required to successfully manage your own personal financial well-being.  In this subject, through lessons in our financial trading room, you will examine the nature of the financial environment and the types of financial decision-making required to succeed, both from a business and an individual perspective. You will develop an understanding of the concept of the time value of money, methods of valuing various financial assets such as shares and bonds, and methods of project evaluation. Finally, you will consider the trade-off between risk and return in relation to investment assets,and its importance in understanding portfolio theory, and the cost of capital for a business.




SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorDinh Phan

Available to Study Abroad StudentsYes

Subject year levelYear Level 1 - UG

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjects FIN2FIN

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFinancial Management: Principles and ApplicationsPrescribedTitman, et al., 8th Edition 2019Pearson Education

Graduate capabilities & intended learning outcomes

01. Demonstrate an understanding of the fundamental concepts of finance necessary for sound financial decision-making.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. Apply the concept of the time value of money in the calculation of present and future values of single cash flows, annuities and perpetuities.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes.
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Explain the differences between debt and equity, calculate the value of bonds and shares using various valuation techniques and appropriate digital and information tools.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes.
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. Calculate the realised return for individual investments and portfolios of investments, the expected return and risk of individual investments and portfolios of investments, and explain the key elements of portfolio theory.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes.
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. Report, compute and explain the different investment decision rules, as they relate to the funding and investment decisions of the firm.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes.
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

06. Define a study plan and potential career path, by exploring the range of learning opportunities at La Trobe and the numerous different career opportunities that exist for finance graduates.

Activities:
Viewing the online lessons relevant to the topic, attempting the online quizzes, home study, reading, attending and participating in the weekly seminars, and attempting the seminar quizzes
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving)
Personal and Professional Skills (Autonomy and independence)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

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Start date between: and    Key dates

Albury-Wodonga, 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Bendigo, 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

China (ECNU), 2020, Week 37-52, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 37 - 52
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 37 to week 52 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 37 - 52
One 2.0 hours seminar per week on weekdays during the day from week 37 to week 52 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

China (SiChuanUni), 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

China (SiChuanUni), 2020, Semester 1, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 10 - 22
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 10 to week 22 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 10 - 22
One 2.0 hours seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Chisholm311(ChisholmInstitute), 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Chisholm311(ChisholmInstitute), 2020, Semester 1, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 10 - 22
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 10 to week 22 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 10 - 22
One 2.0 hours seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Melbourne, 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDinh Phan

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Melbourne, 2020, Semester 1, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDinh Phan

Class requirements

Unscheduled Online Class Week: 10 - 22
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 10 to week 22 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 10 - 22
One 2.0 hours seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Mildura, 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Shepparton, 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Sydney, 2020, Study Period 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 31 - 42
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 42 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 42
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Sydney, 2020, Study Period 1, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 10 - 22
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 10 to week 22 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 10 - 22
One 2.0 hours seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Vietnam (Hanoi University), 2020, Semester 1, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorTony Martin

Class requirements

Unscheduled Online Class Week: 10 - 22
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 10 to week 22 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 10 - 22
One 2.0 hours seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05

Vietnam (Hanoi University), 2020, Semester 2, Blended

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorGreg Jamieson

Class requirements

Unscheduled Online Class Week: 31 - 43
One 2.0 hours unscheduled online class per week on any day including weekend during the day from week 31 to week 43 and delivered via online.
"The length of time required to view the online lessons will vary from topic to topic and from student to student. There is, on average, about 45 minutes of online videos per week, plus additional online material. 2 hours is the estimated average time to view each week's lessons and attempt the online quizzes."

Seminar Week: 31 - 43
One 2.0 hours seminar per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Online and/or inclass formative assessment tasks500 words equivalent20 06
1-hour mid-semester formative examination1,000 words equivalent10 01, 02, 03, 04, 05
1,000-word individual assignment20 02, 03, 04, 05
2-hour final examination2,000 words equivalent 50% hurdle requirement50 01, 02, 03, 04, 05