FINC201-20S2 (C) Semester Two 2020

Business Finance

15 points

Details:
Start Date: Monday, 13 July 2020
End Date: Sunday, 8 November 2020
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Friday, 24 July 2020
  • Without academic penalty (including no fee refund): Friday, 25 September 2020

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.

      Globally aware

      Students will comprehend the influence of global conditions on their discipline and will be competent in engaging with global and multi-cultural contexts.

Pre-requisites

(1) ACCT102 or
MATH103; 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.

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 2020

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Tuesday 14:00 - 15:00 C3 Lecture Theatre 13 Jul - 23 Aug
7 Sep - 18 Oct
02 Tuesday 14:00 - 15:00 Online Stream - students based in NZ 13 Jul - 23 Aug
7 Sep - 18 Oct
03 Tuesday 14:00 - 15:00 Online Stream - students based overseas 13 Jul - 23 Aug
7 Sep - 18 Oct
Lecture B
Activity Day Time Location Weeks
01 Wednesday 11:00 - 12:00 A2 Lecture Theatre 13 Jul - 23 Aug
7 Sep - 18 Oct
02 Wednesday 11:00 - 12:00 Online Stream - students based in NZ 13 Jul - 23 Aug
7 Sep - 18 Oct
03 Wednesday 11:00 - 12:00 Online Stream - students based overseas 13 Jul - 23 Aug
7 Sep - 18 Oct
Lecture C
Activity Day Time Location Weeks
01 Wednesday 14:00 - 15:00 A3 Lecture Theatre 13 Jul - 23 Aug
7 Sep - 18 Oct
02 Wednesday 14:00 - 15:00 Online Stream - students based in NZ 13 Jul - 23 Aug
7 Sep - 18 Oct
03 Wednesday 14:00 - 15:00 Online Stream - students based overseas 13 Jul - 23 Aug
7 Sep - 18 Oct
Tutorial A
Activity Day Time Location Weeks
01-P1 Monday 17:00 - 18:00 John Britten 117 HP Seminar Room 7 Sep - 13 Sep
01-P2 Thursday 14:00 - 15:00 John Britten 117 HP Seminar Room 20 Jul - 23 Aug
14 Sep - 18 Oct
02-P1 Monday 11:00 - 12:00 Ernest Rutherford 460
7 Sep - 13 Sep
02-P2 Friday 11:00 - 12:00 Ernest Rutherford 225
20 Jul - 23 Aug
14 Sep - 18 Oct
03-P1 Monday 11:00 - 12:00 Karl Popper 612
7 Sep - 13 Sep
03-P2 Thursday 09:00 - 10:00 Ernest Rutherford 460
20 Jul - 23 Aug
14 Sep - 18 Oct
04-P1 Monday 09:00 - 10:00 Karl Popper 612
7 Sep - 13 Sep
04-P2 Friday 10:00 - 11:00 Rehua 529
20 Jul - 23 Aug
14 Sep - 18 Oct
05-P1 Tuesday 12:00 - 13:00 Ernest Rutherford 460
7 Sep - 13 Sep
05-P2 Thursday 15:00 - 16:00 Karl Popper 612
20 Jul - 23 Aug
14 Sep - 18 Oct
06-P1 Tuesday 17:00 - 18:00 Zoom
7 Sep - 13 Sep
06-P2 Thursday 16:00 - 17:00 Zoom
20 Jul - 23 Aug
14 Sep - 18 Oct
07-P1 Monday 15:00 - 16:00 Zoom
7 Sep - 13 Sep
07-P2 Friday 13:00 - 14:00 Zoom
20 Jul - 23 Aug
14 Sep - 18 Oct

Examination and Formal Tests

Test A
Activity Day Time Location Weeks
01 Wednesday 18:30 - 20:30 A1 Lecture Theatre 7 Sep - 13 Sep
02 Wednesday 18:30 - 20:30 A3 Lecture Theatre 7 Sep - 13 Sep

Course Administrator

Mona Yaghoubi

Assessment

Assessment Due Date Percentage  Description
Final Exam 45% Primarily problems, some short paragraphs.
Bloomberg Market Concepts 10% BMC is a self-paced e-learning course that provides an interactive introduction to financial markets
Quizzes 10% 10 online multi-choice (LEARN) quizzes
Term test 35% Primarily problems, some short paragraphs.


In order to pass this course, students are required to receive a mark of at least 45% on the final examination.  

This means you can get a 50% overall and still fail the course because you did not earn 45% 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 / Resources

Required Texts

Brealey, Richard A., Myers, Stewart C., Marcus, Alan J; Fundamentals of corporate finance; 10th; McGraw Hill, 2019.

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 $822.00

International fee $3,688.00

* 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