Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Postgraduate Coursework
- Location
- Brisbane City
- Attendance mode
- In Person
- 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.
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
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 |
|---|---|---|---|
| Presentation |
Oral Presentation
|
30% |
27/08/2024 8:30 pm |
| Project |
Financial Evaluation
|
30% |
15/10/2024 5:30 pm |
| Paper/ Report/ Annotation |
Take Home Assessment
|
40% |
4/11/2024 - 11/11/2024
This assessment will be scheduled by the school and run for 24 hours during the examination period. |
Assessment details
Oral Presentation
- In-person
- Mode
- Oral, Written
- Category
- Presentation
- Weight
- 30%
- Due date
27/08/2024 8:30 pm
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02
Task description
- The oral presentation consists of a 5 minute presentation followed by 5 minutes of Q&A, which will be held in class.
- You will be assessed on your: (i) written memorandum (i.e., a summary of your financial analysis), (ii) ability to present your key findings, and (iii) ability to answer questions from the audiences.
- If you are unable to attend the oral presentation, you must apply for an extension. Otherwise, penalties will be applied accordingly.
- Further details about oral presentation will be discussed in class and posted to our course Blackboard site.
In-person assessment not permitting use of AI:
- 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.
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.
Financial Evaluation
- Team or group-based
- Mode
- Written
- Category
- Project
- Weight
- 30%
- Due date
15/10/2024 5:30 pm
- Other conditions
- Peer assessment factor.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
- For this project, you will be in a team of 4 or 5 members.
- Your task will be to undertake security valuation and portfolio analysis.
- Full details, and relevant materials will be provided on the course Blackboard site and discussed in class.
Peer Review: Group members are expected to contribute equally, fulfilling the tasks agreed on. If there are disagreements in relation to team members' contributions that cannot be resolved, students must bring the problem to the attention of their Course Coordinator as early as possible. Students can elect to undertake a Peer Review process, which can influence the marks of those who do not contribute to group work.
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
Submit via 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.
Take Home Assessment
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 40%
- Due date
4/11/2024 - 11/11/2024
This assessment will be scheduled by the school and run for 24 hours during the examination period.
- Other conditions
- Time limited.
- Learning outcomes
- L01, L02, L03, L04
Task description
- The final assessment will be a 24-hour Take Home Assessment held during the official examination period. The Take Home Assessment will be scheduled by the School with students and staff updated on the specific details in due course.
- You will be assessed on the accuracy and clarity of answers.
- More details will be provided on Blackboard prior to the assessment release date.
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 via 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.
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 |
|---|---|---|
O-week |
Seminar |
Pre-course maths workshop Learning outcomes: L01, L02, L05 |
Week 1 |
Seminar |
The time value of money Learning outcomes: L01, L02 |
Tutorial |
The time value of money Learning outcomes: L01, L02 |
|
Week 2 |
Seminar |
Bond valuation and credit ratings Learning outcomes: L01, L02 |
Tutorial |
Bond valuation and credit ratings Learning outcomes: L01, L02 |
|
Week 3 |
Seminar |
Stock valuation Learning outcomes: L01, L02 |
Tutorial |
Tutorial Learning outcomes: L01, L02 |
|
Week 4 |
Seminar |
New project evaluation I Learning outcomes: L03 |
Tutorial |
New project evaluation I Learning outcomes: L03 |
|
Week 5 |
Seminar |
New project evaluation II Learning outcomes: L03 |
Tutorial |
New project evaluation II Learning outcomes: L03 |
|
Week 6 |
Seminar |
Oral presentation Learning outcomes: L01, L02 |
Tutorial |
Oral presentation Learning outcomes: L01, L02 |
|
Week 7 |
Seminar |
Portfolio diversification Learning outcomes: L04 |
Tutorial |
Portfolio diversification Learning outcomes: L04 |
|
Week 8 |
Seminar |
Capital asset pricing model Learning outcomes: L04 |
Tutorial |
Capital asset pricing model Learning outcomes: L04 |
|
Week 9 |
Seminar |
Capital Structure Learning outcomes: L02, L04 |
Tutorial |
Capital structure and Group assignment - help session Learning outcomes: L02, L04 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester break |
Week 10 |
Seminar |
Group Assignment Learning outcomes: L01, L02, L03, L04, L05 |
Tutorial |
Group Assignment - Help Session Learning outcomes: L01, L02, L03, L04, L05 |
|
Week 11 |
Seminar |
The weighted-average cost of capital Learning outcomes: L03 |
Tutorial |
The weighted-average cost of capital Learning outcomes: L03 |
|
Week 12 |
Seminar |
Derivatives and risk management Learning outcomes: L02, L04 |
Tutorial |
Derivatives and risk management Note: The tutorial scheduled for 17 October will move to 18 October. See Blackboard for more information. Learning outcomes: L02, L04 |
|
Week 13 |
Seminar |
Course review Learning outcomes: L01, L02, L03, L04 |
Tutorial |
Course review Learning outcomes: L01, L02, L03, 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.