FINC201-12S1 (C) Semester One 2012

Business Finance

15 points

Details:
Start Date: Monday, 20 February 2012
End Date: Sunday, 24 June 2012
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 4 March 2012
  • Without academic penalty (including no fee refund): Sunday, 20 May 2012

Description

The core principles of the financial management of business firms.

Learning Outcomes

Solve problems utilising time value of money calculations; Understand basic differences between accounting numbers and cash flow numbers and be able to convert accounting numbers into cash flow numbers for valuation; Understand issues, at a basic level, concerning the pricing of and yield to maturity of bonds and be able to price bonds; Understand and be able to solve simple financial planning models; Understand and be able to solve simple financial planning models; Understand and be able to solve problems concerning working capital (cash, inventory, accounts receivable and accounts payable) policy; Understand and use the discounted dividend model (including growth) for stock valuation; Understand the strengths and weaknesses of a range of project evaluation techniques including payback, net present value, and internal rate of return;
Understand and analyze a basic investment decision using a range of project evaluation techniques; Understand cost of capital concepts including opportunity cost of capital and understand and compute a firm's weighed average cost of capital; Understand issues concerning the capital structure of the firm; Understand a range of dividend policies.

Prerequisites

ACCT102 and STAT101 or MSCI110, plus at least 45 additional 100-level points from the BCom or BSC schedules. RP: Students without a mathematics background equivalent to NCEA Level 2 should pass MATH101 before enrolling in this course.

Restrictions

FINC202, AFIS204

Equivalent Courses

AFIS204

Recommended Preparation

Students without a mathematics background equivalent to NCEA Level 2 should pass MATH101 before enrolling in this course.

Course Coordinator

Debra Reed

Assessment

Assessment Due Date Percentage 
Final Exam 40%
10 online multi choice quizzes 10%
Term Test 1 25%
Term Test 2 25%


In order to pass this course, students are required to receive a mark of at least 50% on the final examination.  

This means you can get a 50% overall and still fail the course because you did not earn 50% on the final exam.

If you earn between 50-54% on the final exam, you will receive a C- which will not be sufficient to go on to 300-level finance and will not be sufficient for NZICA.  However, you will receive the 15 points of credit toward your degree.

Textbooks / Resources

Required Texts

Brealey, Richard A., Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance ; 7th; McGraw Hill, 2012.

Notes

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.

Indicative Fees

Domestic fee $655.00

International fee $2,888.00

* 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 .

All FINC201 Occurrences

  • FINC201-12S1 (C) Semester One 2012