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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
(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.
Gilbert Nartea
To pass this course, students must 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.
Brealey, Richard A., Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance ; 11th; McGraw Hill, 2023.
This course will use Microsoft PowerPoint in lectures. The slides will be available on LEARN before class. There will be gaps that you will need to complete during the lecture. The complete slides will not be available to students. If you miss the lecture, you will need to depend on other students to get the material. You will need to be familiar with material other than the PowerPoint presentations such as the textbook, lecture notes, tutorial material and any 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 .