FINC201-21S1 (C) Semester One 2021

Business Finance

15 points

Details:
Start Date: Monday, 22 February 2021
End Date: Sunday, 27 June 2021
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 7 March 2021
  • Without academic penalty (including no fee refund): Friday, 14 May 2021

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; 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 2021

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Monday 11:00 - 12:00 A2 Lecture Theatre
22 Feb - 4 Apr
3 May - 6 Jun
Lecture B
Activity Day Time Location Weeks
01 Tuesday 13:00 - 14:00 A1 Lecture Theatre
22 Feb - 4 Apr
26 Apr - 6 Jun
Lecture C
Activity Day Time Location Weeks
01 Tuesday 17:00 - 18:00 C3 Lecture Theatre
22 Feb - 4 Apr
3 May - 6 Jun
Tutorial A
Activity Day Time Location Weeks
01 Thursday 15:00 - 16:00 A8 Lecture Theatre
1 Mar - 4 Apr
26 Apr - 6 Jun
02 Wednesday 12:00 - 13:00 A8 Lecture Theatre
1 Mar - 4 Apr
26 Apr - 6 Jun
03 Thursday 09:00 - 10:00 A9 Lecture Theatre
1 Mar - 4 Apr
26 Apr - 6 Jun
04 Wednesday 09:00 - 10:00 Link 309 Lecture Theatre
1 Mar - 4 Apr
26 Apr - 6 Jun
05 Thursday 10:00 - 11:00 E12
1 Mar - 4 Apr
26 Apr - 6 Jun
06 Thursday 12:00 - 13:00 John Britten 117 HP Seminar Room
1 Mar - 4 Apr
26 Apr - 6 Jun
07-P1 Thursday 17:00 - 18:00 Online Stream - students based overseas
1 Mar - 4 Apr
26 Apr - 30 May
07-P2 Thursday 18:00 - 19:00 Online Delivery
31 May - 6 Jun

Examination and Formal Tests

Test A
Activity Day Time Location Weeks
01 Tuesday 17:30 - 19:30 C3 Lecture Theatre 26 Apr - 2 May
02 Tuesday 17:30 - 19:30 C2 Lecture Theatre 26 Apr - 2 May

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 -- refer to the course outline for more information.
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, 2020.

Notes

This course will use Microsoft PowerPoint in lectures.  You will need to be familiar with material other than the PowerPoint presentations such as the textbook, tutorial material, and other supplementary material.

Indicative Fees

Domestic fee $831.00

International fee $3,875.00

* 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