Course coordinator
Professor Rumi Masih
Course overview
- Study period
- Semester 2, 2024 (06/09/2024 - 04/11/2024)
- Study level
- Postgraduate Coursework
- Location
- Brisbane City
- Attendance mode
- Intensive
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course provides a comprehensive overview to corporate financial decision making and adding value to the firm. The course will cover a number of important concepts and introduce such topics as financial mathematics, short-term financial management, debt and equity securities and their valuation, project evaluation with emphasis on the discounted cash flow techniques of net present value (NPV) and internal rate of return (IRR), portfolio theory and diversification, the weighted-average cost of capital (WACC), risk and the capital asset pricing model (CAPM), hedging with derivatives.
This course provides you with a set of mathematical, statistical and analytical tools that will enable you to value financial securities, construct portfolios of financial securities, and determine the price impact that a proposed corporate investment will have on shareholder value.
A number of important concepts are addressed via a range of topics including short-term financial management, debt and equity securities and their valuation, project evaluation with particular emphasis on the discounted cash flow techniques of net present value and internal rate of return, portfolio theory and diversification, the weighted-average cost of capital, and the capital asset pricing model.
Course requirements
Assumed background
Students are assumed to have a basic level of capability in accounting, mathematics and statistics as follows:
Accounting: Working knowledge of financial statements, the difference between cash flows and accounting entries and using accounting statements to undertake stock price evaluations as taught in ACCT7804.
Mathematics: Basic algebra, powers and exponents, log functions. A maths primer/review workshop will be available prior to the commencement of the course.
Statistics: Basic concepts of mean, variance and correlation.ﾠ This will be covered in the pre-course maths workshop.
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.
A calculator will be required for course assessments.ﾠ Only school approved calculators may be used, and a financial calculator such as the TI BAII-Plus or HP 12C is strongly recommended.ﾠ Most non-financial calculators, unless specifically programmed to do so, cannot solve some of the problems that we will cover in class.
Recommended prerequisites
We recommend completing the following courses before enrolling in this one:
MGTS7801 + 7803
Incompatible
You can't enrol in this course if you've already completed the following:
FINM2401 or 2411 or 2412 or 2415 or 3401 or 7401
Restrictions
GCBA, GDipBA, MBA
Course contact
Course staff
Lecturer
Professor Rumi Masih
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 set of mathematical, statistical and analytical tools that will enable them to value financial securities, construct portfolios of financial securities, and determine the price impact that a proposed corporate investment will have on shareholder value.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Understand the financial objective of the firm, and the key decision rules that stem from this objective.
LO2.
Apply financial mathematics and use it for valuation of securities.
LO3.
Explain and apply the capital budgeting process techniques to complex valuation situations including calculating the weighted average cost of capital.
LO4.
Understand the concepts of risk in a financial context, and be able to compare and apply the various approaches to manage these risks.
LO5.
Work successfully in a team.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination, Tutorial/ Problem Set |
Assessment 1: In-Semester Exam
|
30% |
29/10/2024
Released at 6pm Tuesday 29th and Due 9pm Tuesday 29th. |
| Paper/ Report/ Annotation, Product/ Design |
Assessment 2: Team Assignment
|
30% |
15/11/2024 5:30 pm |
| Essay/ Critique, Tutorial/ Problem Set |
Assessment 3: Take Home Assessment
|
40% |
4/11/2024 - 5/11/2024
From 12pm on Monday 4th November 2024. The assessment is due at 12pm on Tuesday 5th November 2024 (AEST). |
Assessment details
Assessment 1: In-Semester Exam
- Mode
- Written
- Category
- Examination, Tutorial/ Problem Set
- Weight
- 30%
- Due date
29/10/2024
Released at 6pm Tuesday 29th and Due 9pm Tuesday 29th.
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02
Task description
This assessment will consist of a problem set that students will be required to complete and submit through Blackboard.
Exam details
| Planning time | no planning time minutes |
|---|---|
| Duration | 180 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Open Book examination |
| Exam platform | Learn.UQ |
| Invigilation | Not invigilated |
Submission guidelines
Submit your completed exam to the Turnitin Submission Point
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.
Assessment 2: Team Assignment
- Team or group-based
- Mode
- Product/ Artefact/ Multimedia, Written
- Category
- Paper/ Report/ Annotation, Product/ Design
- Weight
- 30%
- Due date
15/11/2024 5:30 pm
- Other conditions
- Peer assessed, Longitudinal.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The team case study will involve the evaluation and analysis of financial data to form recommendations based on a scenario outlined in the case study. The assignment will involve analysis of financial data in an Australian context.
The assignment is to be completed in assigned teams of up to 4 students.
Each team will prepare a Excel analysis and a report.
These will be submitted electronically via TurnItIn.
Full details, and relevant materials, will be provided on the course Blackboard site.
Submission guidelines
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.
Assessment 3: Take Home Assessment
- Online
- Mode
- Written
- Category
- Essay/ Critique, Tutorial/ Problem Set
- Weight
- 40%
- Due date
4/11/2024 - 5/11/2024
From 12pm on Monday 4th November 2024. The assessment is due at 12pm on Tuesday 5th November 2024 (AEST).
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04
Task description
Final assessment involving project sets and business analysis application.
Submission guidelines
You must submit to the Submission Point by the due date
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 1 grade for each 24 hour period from time submission is due will apply for up to 7 days. After 7 days you will receive a mark of 0.
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 |
Workshop |
Maths refresher workshop Monday 14/10: Refresher on key maths concepts used in this course Learning outcomes: L02 |
Seminar |
Seminar 1 Wednesday 16/10 Session 1 8:00 - 12:00 - Time Value of Money
Session 2 13:00 - 16:00 - Valuation of Mortgages and Bonds.
Learning outcomes: L01, L02 |
|
Tutorial |
REVISION of seminars 1 & 2 Friday 18/10: Tutorial problems Learning outcomes: L01, L02 |
|
Week 2 |
Seminar |
The Capital Asset Pricing Model Monday 21/10 Session 1 8:00 - 12:00 - Setting up investment portfolios and developing the Capital Asset Pricing Model. Session 1 13:00 - 16:00 - Understanding the trade-off between Beta risk and return. Learning outcomes: L02, L04 |
Tutorial |
Stocks and Bonds Tuesday 22/10: Valuation of equity and debt securities Learning outcomes: L01, L02, L03 |
|
Seminar |
WACC and company valuation Thursday 24/10 WACC estimation and the value of a firm. Learning outcomes: L02, L03 |
|
Tutorial |
Project evaluation Friday 25/10: Project evaluation and applications Learning outcomes: L01, L02 |
|
Week 3 |
Seminar |
Leverage and capital structure Monday 28/10: Examine how Companies Set Capital Structure Learning outcomes: L02, L03, L04 |
Tutorial |
Tutorial Risk and return, and CAPM Wednesday 30/10: Tutorial covering risk and return, portfolio diversification, and CAPM Learning outcomes: L02, L04, L05 |
|
Seminar |
Derivatives and Risk Management Thursday 31/10 Learn how companies manage risk and what strategies they use to hedge risk Learning outcomes: L04, L05 |
|
Tutorial |
Introduction to Risk and Return Friday 1/11: Statistical review: returns, standard deviations, correlations, and covariances. Elementary understanding of risk and return. |
Additional learning activity information
Friday 1/11: Statistical review: returns, standard deviations, correlations, and covariances. Elementary understanding of risk and return.
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.