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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.
LEARNING OUTCOMES: At the end of this course, a successful student will be able to:Solve problems utilising time value of money calculationsDemonstrate an understanding of basic differences and between accounting numbers and cash flow numbers and be able to convert accounting numbers into cash flow numbers for valuationBe able to demonstrate the relationship between the pricing of and yield to maturity of bonds and be able to price bondsBe able to value shares using the discounted dividend model (including growth) Be able to set up simple financial planning models and determine external funds required.Be able to evaluate working capital policy.Critically evaluate the strengths and weaknesses of a range of project evaluation techniques including payback, net present value, profitability index and internal rate of returnMake a recommendation for a basic investment decision using a range of project evaluation techniquesDemonstrate understanding about the opportunity cost of capital including calculations of a firm’s cost of capital (including weighted average cost of capital).Demonstrate understanding of issues concerning the capital structure of the firm.Demonstrate an understanding of a range of dividend policies
(1) ACCT102 or MATH103; and (2) STAT101 or MSCI110; and (3) A further 45 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.
FINC202, AFIS204
AFIS204
Students without a mathematics background equivalent to NCEA Level 2 should pass MATH101 before enrolling in this course.
Debra Reed
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.Additionally, if you earn between 45-50% on the final exam, you will receive an R 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.
Brealey, Richard A., Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance ; 8th; McGraw Hill, 2015.
Course Outline
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 $759.00
International fee $3,125.00
* 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 .