Faculty of: Arts and Business School of Business Teaching Session: Semester 1 Year: 2015 Course Coordinator: Gabrielle Parle Office: K2.44 Telephone: (07) 5430 1275 Email: gparle@usc.edu.au Consultation Times: As advised on Blackboard Course outline Code: ACC211 Title: Business Finance 1. What is this course about? 1.1 Course description This course is designed to introduce and provide a basic knowledge of financial management decision making. It is structured to provide you with varying backgrounds with some insight for the necessity to consider the financial implications of management decisions. As such, it steers a middle course between a rigorous, formal discussion and derivation of major results from finance theory and a purely intuitive and descriptive treatment. Sound financial management is crucial to a firm's solvency and long term profitability. Therefore coverage of the course includes financial decisions, the concept of risk, asset pricing models (CAPM and APT), investment evaluation techniques, options and other derivatives, capital markets, dividend policy, taxation, acquisitions and treasury risk management. 1.2 Course content Preliminary Concepts Financial Mathematics Valuation of Stocks and Bonds Risk and Return Capital Asset Pricing Model Capital Budgeting Capital Budgeting: Further Issues Cost of Capital Australian Equities Markets The Pricing Efficiency of Capital Markets Dividend Policy Capital Structure Policy Risk Management 2. Unit value 12 units
Page 2 3. How does this course contribute to my learning? Specific Learning Outcomes Assessment Tasks Graduate Qualities On successful completion of this course you should be able to: Use critical thinking to identify, analyse and solve problems in diverse areas of business finance. Understand and interpret commerce-related knowledge and information. Apply Business Finance theory and tools to regional, national and/or global business situations and decision making. You will be assessed on the learning outcome in task/s: Completing these tasks successfully will contribute to you becoming: 1, 2 and 3 Creative and critical thinkers. 1 and 3 Knowledgeable. 2 Empowered. 4. Am I eligible to enrol in this course? Refer to the Coursework Programs and Awards - Academic Policy for definitions of pre-requisites, corequisites and anti-requisites 4.1 Enrolment restrictions 4.2 Pre-requisites BUS102 4.3 Co-requisites 4.4 Anti-requisites 4.5 Specific assumed prior knowledge and skills 5. How am I going to be assessed? 5.1 Grading scale Standard High Distinction (HD), Distinction (DN), Credit (CR), Pass (PS), Fail (FL)
5.2 Assessment tasks Task No. Assessment Tasks Individual or Group Page 3 Weighting % What is the duration / length? When should I submit? Where should I submit it? 1 Multiple Individual 30% In lecture Week 5 In lecture Choice Test 2 Project Individual 20% N/A Week 10, Friday, SafeAssign Evaluation 5pm AEST 3 Final Exam Individual 50% 2 hours Central examination period In exam venue 100% Assessment Task 1: Multiple Choice Test Goal: Show an understanding of the fundamental ideas of business finance relevant to Weeks 1-3 of the course activities table in section 6.3. Product: A multiple choice test comprising thirty (30) questions that cover topics from Weeks 1-3 inclusive. Will be conducted in the lecture in Week 5. Format: This is an individual assessment. Criteria Comprehension and knowledge of requisite course material. Generic skill assessed Skill assessment level Communication Problem solving Assessment Task 2: Project Evaluation Goal: Product: Format: This task requires you to problem-solve, analyse and synthesise relevant finance theory and method through an investigation of a business case study. The details of the requirements for this task will be handed out in a document in the first lecture. A business case study report This is an individual assessment. See Blackboard for more details Criteria Show an understanding of the application of the Efficient Market Hypothesis. Show an understanding of the discounted cash flow method of asset valuation. Assess the information exchange effect of a corporation and the market. Appraise and compare investment projects using investment evaluation techniques. Total possible Marks 20 Generic skill assessed Communication Problem solving Skill assessment level
Page 4 Assessment Task 3: Final exam Goal: Product: Format: This task requires you to problem-solve, analyse and synthesise finance theory and method by answering specific finance problems within a time-limit. Exam This is an individual assessment. The final exam will cover major aspects of lectures, tutorials and readings completed throughout the semester. You will have two (2) hours for the exam, which will be scheduled during the central examination period. Criteria Show an understanding of the fundamental concepts of business finance that include risk and return, time value of money, the CAPM and the efficient market hypothesis. Show an understanding of alternate pricing methods for stocks and bonds. Show an understanding of capital budgeting theory and practice. Demonstrate and apply knowledge of financing issues and relationship with capital structures and dividend policy. Demonstrate and apply knowledge of the operation of financial markets, including risk management techniques. Generic skill assessed Communication Problem solving 5.3 Additional assessment requirements SafeAssign In order to minimise incidents of plagiarism and collusion, this course may require that some of its assessment tasks are submitted electronically via SafeAssign. This software allows for text comparisons to be made between your submitted assessment item and all other work that SafeAssign has access to. If required, details of how to submit via SafeAssign will be provided on the Blackboard site of the course. Eligibility for Supplementary Assessment Your eligibility for assessment in a course is dependent of the following conditions applying: a) The final mark is in the percentage range 47% to 49.4% b) The course is graded using the Standard Grading scale c) You have not failed an assessment task in the course due to academic misconduct 5.4 Submission penalties Late submission of assessment tasks will be penalised at the following maximum rate: 5% (of the assessment task s identified value) per day for the first two days from the date identified as the due date for the assessment task. 10% (of the assessment task s identified value) for the third day 20% (of the assessment task s identified value) for the fourth day and subsequent days up to and including seven days from the date identified as the due date for the assessment task. A result of zero is awarded for an assessment task submitted after seven days from the date identified as the due date for the assessment task. Weekdays and weekends are included in the calculation of days late. To request an extension you must contact your course coordinator to negotiate an outcome.
Page 5 6. How is the course offered? 6.1 Directed study hours On campus Lecture: 2 hours per week On campus Tutorial: 1 hour per week 6.2 Teaching semester/session(s) offered Semester 1 6.3 Course activities Teaching What key concepts/content will I Week / learn? Module What activities will I engage in to learn the concepts/content? Directed Study Independent Study Activities Activities 1 Preliminary Concepts Frino et al, Ch1 2 Financial Mathematics Frino et al, Ch2 3 Valuation of Stocks and Bonds Frino et al, Ch3 4 Capital Budgeting Frino et al, Ch4 5 Friday, 3 rd April Good Friday Public Holiday Capital Budgeting: Further Issues Frino et al, Ch5 6 Risk and Return Frino et al, Ch6 7 Capital Asset Pricing Model Frino et al, Ch7 8 Cost of Capital Frino et al, Ch8 9 Australian Equities Markets Frino et al, Ch9 No tutorial this week Ch. 1 DQ: 1, 3, 9 PQ: 1, 8 11, 12 FF* Ch. 2 DQ: 1, 2, 4 PQ: 1, 6, 14, 19, 22, 27, 33 Ch. 3 DQ: 1, 2, 10 PQ: 5, 7, 9, 10, 16 FF Ch. 4 DQ: 2, 7, 8 PQ: 2, 7, 9,, 11, 13 Mid Semester Break Ch. 5 DQ: 1, 2, 5 PQ: 1, 3, 9, 14 Ch. 6 DQ: 1, 8, 13 PQ: 4, 6, 9, 12 FF Ch. 7 DQ: 1, 2, 3, 4 PQ: 1, 2, 3, 9 Ch. 8 DQ: 1, 2, 3 PQ: 1, 3, 6
Page 6 10 The Pricing Efficiency of Capital Markets Frino et al, Ch10 11 Dividend Policy Frino et al, Ch11 12 Capital Structure Policy Frino et al, Ch12 13 Risk Management Frino et al, Ch13 Ch. 9 DQ: 1, 11, Ch. 10 DQ: 1, 7, 9 PQ: 2, 4, 5 Ch. 11 DQ: 1, 3, 10 PQ: 1, 3, 5, 6 Ch. 12 DQ: 1, 6, 10 PQ: 1, 2, Ch. 13 DQ: 1, 2, 10 PQ: 1 Study Period Central Examination Period End of Semester Break Please note that the course activities may be subject to variation. FF* - Formative Feedback 7. What resources do I need to undertake this course? 7.1 Prescribed text(s) Please note that you need to have regular access to the resource(s) listed below: Author Year Title Publisher Frino, A., Hill, A., and Chen, Z., 2013 Introduction to Corporate Finance 5th Ed. Pearson Education Australia, Frenchs Forest 7.2 Required and recommended readings Lists of required and recommended readings may be found for this course on its Blackboard site. These materials/readings will assist you in preparing for tutorials and assignments, and will provide further information regarding particular aspects of your course. 7.3 Specific requirements Calculator 7.4 Risk management There is minimal health and safety risk in this course. It is your responsibility to familiarise yourself with the Health and Safety policies and procedures applicable within campus areas. 8. How can I obtain help with my studies? In the first instance you should contact your tutor, then the Course Coordinator. Student Life and Learning provides additional assistance to all students through Peer Advisors and Academic Skills Advisors. You can drop in or book an appointment. To book: Tel: +61 7 5430 1226 or Email: StudentLifeandLearning@usc.edu.au
Page 7 9. Links to relevant University policies and procedures For more information on Academic Learning & Teaching categories including: Assessment: Courses and Coursework Programs Review of Assessment and Final Grades Supplementary Assessment Administration of Central Examinations Deferred Examinations Student Academic Misconduct Students with a Disability http://www.usc.edu.au/university/governance-and-executive/policies-and-procedures#academic-learningand-teaching 10. Faculty specific information LOCATING JOURNAL ARTICLES If you have been notified that the journal articles in this course are available on e-reserve, use the on-line library catalogue to find them. For journal articles not on e-reserve, click on the "Journals and Newspapers" link on the Library Homepage. Enter the journal title e.g. History Australia, then search for the volume and issue or keyword as needed. ASSIGNMENT COVER SHEETS The Faculty of Arts and Business assignment cover sheet can be found on Blackboard or on the USC Portal Faculty of Arts and Business. It must be completed in full identifying student name, assignment topic, tutor and tutorial time. This must be attached securely to the front of each assessment item required to be submitted by hard copy. Claims of loss of assignments will not be considered unless supported by a receipt. HELP: If you are experiencing problems with your studies or academic work, consult your tutor in the first instance or the Course Coordinator as quickly as possible. DIFFICULTIES: If you are experiencing difficulties relating to teaching and assessment you should approach your tutor in the first instance. If not satisfied after that you should approach in order your Course Coordinator, Program Coordinator then Head of School. General enquiries and student support Faculty Student Centre Tel: +61 7 5430 1259 Fax: +61 7 5430 2859 Email: FABinfo@usc.edu.au