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
In-depth analysis of financial issues confronting most companies. Strong focus on application and practical relevance. Topics include valuation and project analysis, real option valuation, capital raising, financing and dividend policy, risk management and corporate strategy.
This is a second-level course that considers the main issues that confront corporate financial managers. The course begins by considering the optimal capital structure of the firm and various tools for capital management. We consider the interaction between the firm's approach to capital management and its weighted-average cost of capital (WACC). We then consider the firm's dividend policy and how dividend imputation may affect the cost of capital. The course takes a very applied perspective in estimating the cost of capital and in considering current issues in practice and methods for valuing a firm in an internally consistent manner. The second part of the course considers how a firm is able to manage various financial risks (particularly interest rate and exchange rate risk) using derivative securities. This leads to a discussion of real option valuation techniques.
Course requirements
Assumed background
Students are assumed to have successfully completed an introductory finance course such as FINM2411 and to have a working knowledge of basic finance principles and terminology.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
FINM2411
Incompatible
You can't enrol in this course if you've already completed the following:
FINM7402
Restrictions
Restricted to students enrolled in the BAdvFin&Econ(Hons) and BCom(Hons) programs
Course contact
Course staff
Lecturer
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 students with a solid grounding in corporate finance. ﾠThe skills developed in this course will enable students to determine the optimal capital structure of a firm, to perform corporate valuations, and to manage a range of financial risks using derivative securities.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Determine the optimal capital structure for a firm.
LO2.
Estimate the weighted-average cost of capital (WACC) for a firm.
LO3.
Working as a team to use raw data to estimate WACC parameters.
LO4.
Demonstrate how a firm can mitigate common financial risks using derivative securities.
LO5.
Evaluate the merits of a proposed acquisition.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Paper/ Report/ Annotation, Practical/ Demonstration, Presentation |
WACC estimation
|
30% |
Written Report - Due 15:00 20/08/2024 Team Presentation During Tutorial 7/10/2024 - 11/10/2024 |
| Examination |
In-Semester Exam
|
30% |
4/09/2024
During Class |
| Examination |
Final Exam
|
40% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
WACC estimation
- Team or group-based
- In-person
- Mode
- Oral, Product/ Artefact/ Multimedia, Written
- Category
- Paper/ Report/ Annotation, Practical/ Demonstration, Presentation
- Weight
- 30%
- Due date
Written Report - Due 15:00 20/08/2024
Team Presentation During Tutorial 7/10/2024 - 11/10/2024
- Other conditions
- Peer assessed.
- Learning outcomes
- L01, L02, L03
Task description
- The team case study will involve the estimation of the weighted average cost of capital (WACC) for a firm.
- Each team will prepare a detailed WACC analysis, a short report, and a short presentation.
- The case study will be completed in randomly assigned teams.
- Team work must be submitted electronically.
- Full details and relevant materials will be posted on the course Blackboard site.
- Peer evaluation details will be provided with the case materials.
This assessment task evaluates students' abilities, skills, and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Submit report through Blackboard Assessment link. Only one team member is to submit. All team member names must appear on the cover page.
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.
In-Semester Exam
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 30%
- Due date
4/09/2024
During Class
- Learning outcomes
- L01, L02
Task description
- The In-Semester Exam covers material from all classes prior to the exam.
- A combination of short answer and problem solving questions will be included in the exam.
- More information about the exam will be shared in class and posted to the course Blackboard site.
This assessment task evaluates students' abilities, skills, and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 90 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.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
Final Exam
- Online
- Mode
- Written
- Category
- Examination
- Weight
- 40%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Learning outcomes
- L04, L05
Task description
- This exam is a online Blackboard exam.
- The final exam will cover material from after the in-semester exam.
- A combination of short answer and problem solving questions will be included in the exam.
- Further information about the final exam will be shared in class and posted to the course Blackboard site.
This assessment task evaluates students' abilities, skills, and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Learn.UQ |
| Invigilation | Not invigilated |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
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 |
Weighted-Average Cost of Capital Learning outcomes: L02, L03 |
Week 2 |
Tutorial |
T1 - Weighted-Average Cost of Capital Learning outcomes: L02, L03 |
Lecture |
Optimal Capital Structure I Learning outcomes: L01 |
|
Week 3 |
Tutorial |
T2 - Optimal Capital Structure I Learning outcomes: L01 |
Lecture |
Optimal Capital Structure II Learning outcomes: L01 |
|
Week 4 |
Tutorial |
T3 - Optimal Capital Structure II Learning outcomes: L01 |
Lecture |
Optimal Capital Structure III Learning outcomes: L01 |
|
Week 5 |
Tutorial |
T5 - Optimal capital structure III Learning outcomes: L01 |
Lecture |
Dividend imputation and gamma Learning outcomes: L02, L03 |
|
Week 6 |
Tutorial |
T5 - Dividend imputation and gamma Learning outcomes: L02, L03 |
Lecture |
Catch-up and In-Semester Review Learning outcomes: L01, L02 |
|
Week 7 |
Tutorial |
No Tutorial No Tutorial due to In-Semester Exam this week. |
Lecture |
In-Semester Exam In-Semester exam during class Learning outcomes: L01, L02 |
|
Week 8 |
Tutorial |
No Tutorial Self-Paced Study - No tutorial this week |
Lecture |
Corporate Risk Management I Learning outcomes: L04 |
|
Week 9 |
Tutorial |
T6 - Corporate Risk Management I Learning outcomes: L04 |
Lecture |
Corporate Risk Management II Learning outcomes: L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break No classes during In-Semester Break |
Week 10 |
Tutorial |
T7 - Corporate Risk Management II Learning outcomes: L04 |
Lecture |
Mergers and Acquisitions Learning outcomes: L05 |
|
Week 11 |
Tutorial |
Team Case Presentations Learning outcomes: L02, L03 |
Lecture |
No Lecture No Lecture this week to focus on team presentations |
|
Week 12 |
Tutorial |
T8 - Mergers and Acquisitions Learning outcomes: L05 |
Lecture |
Real Options I Learning outcomes: L04 |
|
Week 13 |
Tutorial |
T9 - Real Options Learning outcomes: L04 |
Lecture |
Real Options II / Course review Learning outcomes: L03, L04, L05 |
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.