Course coordinator
Dr Eric Tan
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course provides an introduction to finance. It describes the role and function of stock markets, bond markets and foreign exchange markets. It develops an understanding of the time value of money and how organisations finance their operations, make investments and distribute profits.
Introduction to Finance provides an introduction to financial decision-making that contributes to the value of the firm. This course covers a number of important concepts and provides an introduction to such topics as financial mathematics, debt and equity valuation, project evaluation with emphasis on the discounted cash flow techniques of net present value (NPV) and internal rate of return (IRR), the weighted-average cost of capital (WACC), risk, diversification and the capital asset pricing model (CAPM).
This course provides the necessary groundwork for the other finance courses offered by UQ Business School. Students should note well that theory and practical work cannot be separated. Students must understand the basics of each topic's theory in order to tackle practical problems. The course is progressive. For example, the introductory topic on the time value of money forms the necessary basis for stock and bond valuation models. Thus, the key to succeed in this course is to study consistently. This is the only formula to successfully complete Finance.
Course requirements
Assumed background
FINM1415 requires you to use a number of different mathematical knowledge areas. These areas would have been covered in high school during years 10–12, and include algebra, summation notation, logarithms, and the statistical concepts of mean, standard deviation/variance and expected value.
Before attempting this course, students are advised that it is important to complete the appropriate prerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by the School of Business, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Recommended prerequisites
We recommend completing the following courses before enrolling in this one:
ACCT1101 or 1110
Incompatible
You can't enrol in this course if you've already completed the following:
FINM2401 or 2411 or 2412 or 7401 or 7805
Restrictions
Not to be studied by BAdvBus(Hons) and BAdvFin&Econ(Hons) students
Course contact
Lecturer
Dr Chris Bell
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:
- Full Name
- Student ID
- Course Code
Aims and outcomes
This course aims to provide a comprehensive introduction to financial management and financial analysis. Students will be introduced to financial management through exploring the principal decisions confronting the financial manager of a firm, namely the acquisition and utilisation of funds for profit, and adding value to the firm. Additionally, this course will provide a core upon which intermediate and advanced aspects of corporate finance and asset pricing can be developed.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Explain the objective of the firm, and apply appropriate approaches to making optimal financial decisions at individual security and portfolio levels
LO2.
Apply the time value of money concept to various valuation problems including valuing financial assets (Shares, Bonds, Mortgages) and to make project investment decisions consistent with the firm's objective
LO3.
Apply capital budgeting techniques and be able to critically evaluate the resulting analysis in achieving the firm's key objective
LO4.
Understand the underlying operation of capital markets, and evaluate the risk and return in a financial context
LO5.
Working collaboratively as a group in collecting and analyzing financial data
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Presentation, Project |
Team Project
|
30% |
Practice presentation Week 3 - Week 4 Team presentation #1 Week 6 - Week 7 Team presentation #2 Week 12 - Week 12 Peer assessment Week 13 - Week 13 |
| Paper/ Report/ Annotation | Share Valuation Report | 20% |
4/10/2024 2:00 pm |
| Examination |
Final Exam
|
50% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
Team Project
- Team or group-based
- Mode
- Oral
- Category
- Presentation, Project
- Weight
- 30%
- Due date
Practice presentation Week 3 - Week 4
Team presentation #1 Week 6 - Week 7
Team presentation #2 Week 12 - Week 12
Peer assessment Week 13 - Week 13
- Other conditions
- Peer assessed, Longitudinal.
- Learning outcomes
- L01, L03, L04, L05
Task description
Students are required to work in teams of 4-5 people (preferably 5) with students in your tutorial.
The team will be provided with practical issues that they need to collaboratively solve during and after the tutorial. Each team is expected to do two presentations in the allocated tutorials in teaching week 6 or 7, and teaching week 12. One of the team members needs to submit the presentation slides and preparation notes to Blackboard by the end of the presentation week. The topic and the detailed schedule will be published on Blackboard.
You will be given a chance to practice your presentation and collect feedback in teaching week 3 or teaching week 4 (This does not contribute to your grade).
Upon completing the team project, you must also complete the Peer Assessment individually by 14:00 Friday Week 13. Peer assessment will be used to compute your final grade on the team project. Completing the Peer Assessment is mandatory. If you do not submit a peer assessment form, you will receive a score of zero on the team project. Peer Assessment will be completed on Blackboard and is integrated into the Blackboard teams. Details about Peer Assessment will be discussed during the semester.
AI use policy:
Artificial Intelligence (AI) provides emerging tools that may support students in completing this assessment task. Students may appropriately use AI in completing this assessment task.. Students must clearly reference any use of AI in each instance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
The presentation slides and preparation notes are submitted using the course Blackboard site. For more details, refers to the "Assessment Guidelines" on Blackboard.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Share Valuation Report
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 20%
- Due date
4/10/2024 2:00 pm
- Learning outcomes
- L01, L02
Task description
The stock valuation report should provide numerical analysis, theory discussion, and investment suggestions for a company.
You are also expected to draw reflections from the first team presentation, where each team will be discussing a practical application on stock valuation.
AI use policy:
Artificial Intelligence (AI) provides emerging tools that may support students in completing this assessment task. Students may appropriately use AI in completing this assessment task.. Students must clearly reference any use of AI in each instance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
The assignment must be submitted using Turnitin and the submission point on the course Blackboard site. For more details, refers to the "Assessment Guidelines" on Blackboard.
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Exam
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 50%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04
Task description
This exam is a closed book, invigilated exam, paper-based exam invigilated by UQ appointed invigilators as required by UQ and Professional Accounting organisations.
Your final exam will consist of problem-solving and short-answer questions.
More details about the final exam will be provided on Blackboard at the appropriate time.
AI use policy:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
L1: Introduction to Financial Markets/Instruments Learning outcomes: L01, L02 |
Week 2 |
Tutorial |
T1: Introduction to Financial Markets/Instruments Learning outcomes: L01, L02 |
Lecture |
L2: Time Value of Money (I) Learning outcomes: L02 |
|
Week 3 |
Tutorial |
T2: Time Value of Money (I) Learning outcomes: L02 |
Lecture |
L3: Time value of Money (II) - Interest Rate Learning outcomes: L02 |
|
Week 4 |
Tutorial |
T3: Time value of Money (II) - Interest Rate Royal Queensland Show Public Holiday - Wednesday 14 Aug 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L02 |
Lecture |
L4: Valuation of Shares Learning outcomes: L01, L02 |
|
Week 5 |
Tutorial |
T4: Valuation of Shares Learning outcomes: L01, L02 |
Lecture |
L5: SSP Activity 1 Learning outcomes: L01, L02, L05 |
|
Week 6 |
Tutorial |
T5: Group Presentation Assessment: Group Presentation 1 Learning outcomes: L01, L02, L05 |
Lecture |
L6: Valuation of Debts Learning outcomes: L01, L02 |
|
Week 7 |
Tutorial |
T6: Valuation of Debts Learning outcomes: L01, L02, L04 |
Lecture |
L7: Investment Decision Rules Learning outcomes: L03 |
|
Week 8 |
Tutorial |
T7: Investment Decision Rules Learning outcomes: L03 |
Lecture |
L8: Fundamentals of Capital Budgeting Learning outcomes: L03 |
|
Week 9 |
Tutorial |
T8: Fundamentals of Capital Budgeting Learning outcomes: L03 |
Lecture |
L9: Capital Markets and the Pricing of Risks Learning outcomes: L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
T9: Capital Markets and the Pricing of Risks Learning outcomes: L04 |
Lecture |
L10: Optimal Portfolio Choice Learning outcomes: L04 |
|
Week 11 |
Tutorial |
T10: Optimal Portfolio Choice King's Birthday Public Holiday - Monday 7 Oct 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L04 |
Lecture |
L11: SSP Activity 2 Learning outcomes: L04, L05 |
|
Week 12 |
Tutorial |
T11: Group Presentation Assessment: Group Presentation 2 Learning outcomes: L01, L04, L05 |
Lecture |
L12: CAPM and Estimating the Cost of Capital Learning outcomes: L01, L04 |
|
Week 13 |
Lecture |
Revision Lecture Learning outcomes: L01, L02, L03, L04 |
Tutorial |
T12: CAPM and Estimating the Cost of Capital Learning outcomes: L01, L04 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.