FINC201-18S2 (C) Semester Two 2018

Business Finance

15 points
16 Jul 2018 - 18 Nov 2018

Description

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

LEARNING OUTCOMES:  At the end of this course, a successful student will be able to:

  • Solve problems utilising time value of money calculations
  • Demonstrate 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 valuation
  • Be able to demonstrate the relationship between the pricing of and yield to maturity of bonds and be able to price bonds
  • Be 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 return
  • Make a recommendation for a basic investment decision using a range of project evaluation techniques
  • Demonstrate 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
    • University Graduate Attributes

      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.

Pre-requisites

(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.

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.

Timetable 2018

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Tuesday 11:00 - 12:00 C2 Lecture Theatre 16 Jul - 26 Aug
10 Sep - 21 Oct
Lecture B
Activity Day Time Location Weeks
01 Wednesday 12:00 - 13:00 C2 Lecture Theatre 16 Jul - 26 Aug
10 Sep - 21 Oct
Lecture C
Activity Day Time Location Weeks
01 Monday 16:00 - 17:00 C2 Lecture Theatre 16 Jul - 26 Aug
10 Sep - 21 Oct
Tutorial A
Activity Day Time Location Weeks
01 Thursday 13:00 - 14:00 Ernest Rutherford 464 Computer Lab (23/8)
Putaiao Koiora 275 (19/7-16/8, 13/9-18/10)
16 Jul - 26 Aug
10 Sep - 21 Oct
02 Thursday 14:00 - 15:00 Ernest Rutherford 464 Computer Lab (23/8)
Jack Erskine 239 (19/7-16/8, 13/9-18/10)
16 Jul - 26 Aug
10 Sep - 21 Oct
03 Thursday 15:00 - 16:00 Ernest Rutherford 260 (19/7-16/8, 13/9-18/10)
Ernest Rutherford 464 Computer Lab (23/8)
16 Jul - 26 Aug
10 Sep - 21 Oct
04 Thursday 16:00 - 17:00 Ernest Rutherford 464 Computer Lab (23/8)
John Britten 117 HP Seminar Room (19/7-16/8, 13/9-18/10)
16 Jul - 26 Aug
10 Sep - 21 Oct
05 Friday 10:00 - 11:00 Ernest Rutherford 464 Computer Lab (24/8)
F1 Lectorial (20/7-17/8, 14/9-19/10)
16 Jul - 26 Aug
10 Sep - 21 Oct
06 Friday 11:00 - 12:00 Ernest Rutherford 464 Computer Lab (24/8)
Ernest Rutherford 465 (20/7-17/8, 14/9-19/10)
16 Jul - 26 Aug
10 Sep - 21 Oct

Examination and Formal Tests

Test A
Activity Day Time Location Weeks
01 Monday 19:00 - 20:30 E8 Lecture Theatre (13/8)
E9 Lecture Theatre (13/8)
13 Aug - 19 Aug
Test B
Activity Day Time Location Weeks
01 Monday 19:00 - 20:30 E8 Lecture Theatre (24/9)
E9 Lecture Theatre (24/9)
24 Sep - 30 Sep

Course Coordinator

Debra Reed

Assessment

Assessment Due Date Percentage  Description
Final Exam 35% Primarily problems, some short paragraphs.
Quizzes 10% 12 online multi-choice (LEARN) quizzes (best 10 count -- 1%each)
Term test 25% Primarily problems, some short paragraphs.
Term test 30% Primarily problems, some short paragraphs.


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.

Textbooks

Recommended Reading

Brealey, Richard A. , Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance; Eighth edition; McGraw-Hill/Irwin, 2015.

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 $790.00

International fee $3,350.00

* Fees include New Zealand GST 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