This course examines the economic principles that determine the allocation of resources through time in market economies. It uses supply and demand relationships to value capital assets (or projects more generally). There is a detailed treatment of the effects of risk and taxes on capital asset prices, and the Modigliani-Miller financial policy irrelevance theorems are derived and examined in detail.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
By taking this course students will:
- be exposed to the classical finance model that underpins modern finance;
- understand how securities are priced and affected by the institutional arrangements in securities markets,
- including taxes and other government regulations, and the role played by time, uncertainty, information and inflation;
- know the role played by arbitrage in finance markets and its impact on security prices;
- understand how security prices are determined in the Capital Asset Pricing Model, and the role played by the assumptions in the model;
- know the assumptions behind the the Modigliani and Miller (M-M) financial policy irrelevance theorems as basis for understanding the factors that determine the debt-equity and dividend policy choices of firms.
Other Information
See the course outline on the College courses page. Outlines are uploaded as they become available.
Indicative Assessment
Two examinable tutorials will be held during the semester, they are both fully redeemable. The first one, which can contribute 10 per cent to the final grade, will be held just prior to the mid-semester break, while the second one, which can contribute 15 per cent, will be completed just after the mid-semester break. The dates will be set two weeks in advance and will be announced in lectures and posted on WATTLE. A three (3) hour exam is held at the end of semester.
The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Workload
Two lectures per week with tutorials
Requisite and Incompatibility
Preliminary Reading
Hirschleifer, J., Price Theory and Applications (2nd Edition), 1980 - Chapter 16.
A combination of material is drawn from books, journals and lecture handouts.
Fees
Tuition fees are for the academic year indicated at the top of the page.
If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Students continuing in their current program of study will have their tuition fees indexed annually from the year in which you commenced your program. Further information for domestic and international students about tuition and other fees can be found at Fees.
- Student Contribution Band:
- 3
- Unit value:
- 6 units
If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees. Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee | Description |
|---|---|---|
| 1994-2003 | $2922 | |
| 2014 | $3246 | |
| 2013 | $3240 | |
| 2012 | $3240 | |
| 2011 | $3240 | |
| 2010 | $3240 | |
| 2009 | $3240 | |
| 2008 | $3240 | |
| 2007 | $3240 | |
| 2006 | $3240 | |
| 2005 | $3234 | |
| 2004 | $3234 |
- International fee paying students
| Year | Fee |
|---|---|
| 1994-2003 | $2922 |
| 2014 | $3762 |
| 2013 | $3756 |
| 2012 | $3756 |
| 2011 | $3756 |
| 2010 | $3750 |
| 2009 | $3426 |
| 2008 | $3426 |
| 2007 | $3426 |
| 2006 | $3288 |
| 2005 | $3234 |
| 2004 | $3234 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
Second Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 9381 | 18 Jul 2016 | 29 Jul 2016 | 31 Aug 2016 | 28 Oct 2016 | In Person | N/A |