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The core principles of the financial management of business firms.
This course will help you acquire the fundamental tools used in financial analysis and apply them to business decisions. It will introduce you to finance as a discipline that bridges accounting and economics. It will help you learn to view business decisions from a finance perspective. The topics covered include time value of money, financial statement analysis, financial planning, working capital management, stock and bond valuation, capital asset investment decision methods, risk and return, portfolio theory, cost of capital, capital structure and dividend policy.
At the end of the course, you should be able to:1. Solve problems utilising time value of money calculations.2. Demonstrate an understanding of basic differences between accounting numbers and cash flow numbers and be able to convert accounting numbers into cash flow numbers for valuation.3. Demonstrate the relationship between the pricing of and yield to maturity of bonds and be able to price bonds.4. Value shares using the discounted dividend model (including growth).5. Critically evaluate the strengths and weaknesses of a range of project evaluation techniques including payback, net present value, profitability index and internal rate of return.6. Make a recommendation for a basic investment decision using a range of project evaluation techniques.7. Demonstrate an understanding of the opportunity cost of capital including calculations of a firm’s cost of capital (including weighted average cost of capital).8. Demonstrate an understanding of issues concerning the capital structure of the firm.9. Demonstrate an understanding of a range of payout policies.10. Set up simple financial planning models and determine external funds required.
This course will provide students with an opportunity to develop the Graduate Attributes specified below:
Critically competent in a core academic discipline of their award
Students know and can critically evaluate and, where applicable, apply this knowledge to topics/issues within their majoring subject.
Employable, innovative and enterprising
Students will develop key skills and attributes sought by employers that can be used in a range of applications.
Globally aware
Students will comprehend the influence of global conditions on their discipline and will be competent in engaging with global and multi-cultural contexts.
(1) ACCT102; and (2) STAT101; and (3) a further 30 points RP: Students without a mathematics background equivalent to NCEA Level 2 should pass MATH101 before enrolling in this course.
FINC202, AFIS204
AFIS204
Students without a mathematics background equivalent to NCEA Level 2 should pass MATH101 before enrolling in this course.
Students must attend one activity from each section.
Mona Yaghoubi
To pass this course you must not only achieve a final grade of 50% or higher, but also achieve a mark of at least 45% on the final examination.This means you could earn 50% overall and still fail the course if you do not achieve at least 45% on the final exam.Additionally, if your final exam mark falls between 45% and 50%, you will receive an "R" grade. While this will grant you 15 points of credit toward your degree, it will not qualify you to progress to 300-level Finance courses or meet NZICA requirements.Guidelines for the Use of AI in CourseworkThe use of AI may or may not be permitted in courses. Within a course, permission may vary by assignment. It is the responsibility of the student to inform themselves about assessment conditions and submit work that is their own and that properly acknowledges the work of other people and tools, including generative artificial intelligence tools.It is important to familiarise yourself with the UC Misconduct Procedure Guide for Students. Examples of academic misconduct include, but are not limited to:Where a student uses a generative artificial intelligence (AI) tool for an assessment in a manner that is not expressly permitted or fails to acknowledge the use of a generative AI tool as instructed.Assessment in Te Reo MāoriIn recognising that Te Reo Māori is an official language of New Zealand, the University provides for students who may wish to use Te Reo Māori in their assessment. If you intend to submit your work in Te Reo Māori you are required to do the following: Read the Assessment in Te Reo Māori Policy and ensure that you meet the conditions set out in the policy. This includes, but is not limited to, informing the Course Coordinator 1) no later than 10 working days after the commencement of the course that you wish to use Te Reo Māori and 2) at least 15 working days before each assessment due date that you wish to use Te Reo Māori.
The recommended course textbook is: Brealey, Richard A., Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance; 11th ed.; McGraw Hill. https://www.mheducation.com/highered/product/Fundamentals-of-Corporate-Finance-Brealey.htmlCalculatorsIt is recommended that you have a calculator that does financial functions. If you have any intention of studying finance, a financial calculator would be a worthwhile investment. The recommended calculators are: (1) Texas Instruments, BAII- PLUS. It is available from www.fishpond.co.nz (2) Hewlett Packard HP10-bII. These are sometimes available on TradeMe and at UC bookshop.If you do not own or do not wish to purchase a financial calculator, a scientific calculator is sufficient, although a financial calculator will save you time. You must get your calculator(s) approved (a ‘UC approved’ sticker will be attached to the calculator) for use in Commerce tests and examinations. For examinations which require a "UC Stickered" Calculator: checks take place from the Information Desk (Te Pātaka, Puaka - James Hight, Level 2) on a drop-in basis Monday to Friday, between the hours of 8.30am and 4.30pm Monday to Friday.
This course will use Microsoft PowerPoint in lectures. You will need to be familiar with material other than the PowerPoint presentations such as the textbook, tutorial material, and other supplementary material.
Domestic fee $946.00
International fee $4,363.00
* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.
For further information see Department of Economics and Finance .