- Class Number 2441
- Term Code 2930
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Prof Takeshi Yamada
- Prof Takeshi Yamada
- Class Dates
- Class Start Date 25/02/2019
- Class End Date 31/05/2019
- Census Date 31/03/2019
- Last Date to Enrol 04/03/2019
This course is an introductory course in financial management. It builds upon the basic concepts introduced in the Foundations of Finance (FINM1001) and stresses the modern fundamentals of corporate financial decision making with special reference to investment, financing and dividend distribution. While building upon introductory courses in accounting, economics and quantitative analysis the course develops distinctive conceptual frameworks and specialised tools for solving real world financial problems at both the individual and corporate level. The course is a blend of theory and practice. While diligent practice will make you competent in financial techniques, a good grasp of theory will help you think systematically about ways to solve a problem for which no existing technique is suitable or available.
Specific topics to be covered include: financial mathematics, security valuation, techniques for capital investment decisions, financial decision making, corporate capital structure, cost of capital, dividend decision and policy, leasing decision and the analysis of mergers and acquisitions.
Upon successful completion, students will have the knowledge and skills to:
- Analyse a range of real-life financial situations using the concepts, frameworks and theories learned throughout the course;
- Be able to solve a number of decision problems including: a. consumption and investment decision under certainty; b. valuation of corporate securities; c. capital budgeting under certainty; d. capital budgeting under uncertainty; e. investment decisions; f. corporate capital structure decisions; g. dividend decisions and policy; h. capital raising decisions; i. leasing decisions; and, j. analysis of takeovers and mergers.
While students are not directly engaged in the research as part of the learning process, the course will cover materials that reflect the cutting-edge research around Corporate Finance. My aim is to integrate and emphasise how academic research can influence industry practice and policy making, through which students would be encouraged to think outside of the box. The course will also include parts which involve students in critical analysis of industry-based problems in valuation, capital budgeting and risk assessments.
Examination Material or equipment
Scientific (or financial) calculator
Students are expected to have access to a copy of the prescribed book for the duration of the semester. The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chifley Library.
Textbook: Corporate Finance (Fourth Edition, Global Edition) by Jonathan Berk and Peter DeMarzo, Pearson
Additional reading materials including journal articles, newspaper articles will be available on WATTLE.
Consultation time will be confirmed at the start of the semester.
General feedback on most matters will be posted on Wattle. Feedback on quizzes will be given in tutorials class with either verbal or written comments.
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.
|Week/Session||Summary of Activities||Assessment|
|1||Introduction (Ch 1, 3) Review of time value of money and interest rates (Ch 4, 5)|
|2||Project evaluation: principles and methods (Ch 7)|
|3||Application of project evaluation methods (Ch 8)||Online quiz 1 (for the content of Week 1,2)|
|4||Pricing of return and risk (Ch 5, 6, 10, 11: Note: Ch 10, 11 is assumed knowledge and will be a review)|
|5||The cost of capital (Ch 12)||Online quiz 2 (for the content of Week 3,4)|
|6||Principles of capital structure and capital structure decisions (Ch 14)|
|7||Principles of capital structure and capital structure decisions (Ch 15, 16)||In-tutorial-class quiz (for the content of Weeks 1-5)|
|8||Dividends and share buyback decisions (Ch 17)|
|9||Equity financing (Ch 23) Debt financing (Ch 24)||Online quiz 3 (for the content of Week 6,7)|
|10||Leasing decisions (Ch 25)|
|11||Mergers and Acquisitions (Ch 28)||Online quiz 4 (for the content of Week 8,9)|
|12||Corporate governance (Ch 29) Review|
Tutorial signup for this course will be done via the Wattle website. Detailed information about signup times will be provided on Wattle or during your first lecture. When tutorials are available for enrolment, follow these steps:
1. Log on to Wattle, and go to the course site
2. Click on the link “Tutorial enrolment”
3. On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter
4. Confirm your choice
If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Online Quiz – 0.5 hour (Weeks 3, 5, 9 and 11)||15 %||11/03/2019||17/03/2019||2|
|In-tutorial-class quiz||20 %||22/05/2019||28/05/2019||2|
|Final Examination – 3 hours (Date: TBA)||65 %||06/06/2019||04/07/2019||1,2|
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
The ANU is using 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. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.
Moderation of Assessment
Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.
See information above.
Assessment Task 1
Learning Outcomes: 2
Online Quiz – 0.5 hour (Weeks 3, 5, 9 and 11)
Four quizzes will be held in the weeks described above. They will go for 30 minutes each and be worth 3.75% each of your final grade. The online quiz uses MyFinanceLab, which you can directly register and access from Wattle. MyFinanceLab also provides self-study sites. You have the option not to use MyFinance Lab. If you wish to opt-out, you will be given a hard-copy version of the quiz. You need to notify me upon enrollment for the course if you choose to opt-out.
Assessment Task 2
Learning Outcomes: 2
The quiz is closed book with formula sheet provided. Duration will be 45 minutes. The venue will be in your tutorial session. A mixture of theory and practical (numerical) questions will be asked. The marking criteria will be based on model solutions and answers prepared by the lecturer.
Assessment Task 3
Learning Outcomes: 1,2
Final Examination – 3 hours (Date: TBA)
Total weighting: 65%.
This is a closed book exam with formula sheet provided. A mixture of theory and practical (numerical) questions will be asked. The exam will cover materials for weeks 1 to 12. Students will be provided with further details regarding the exam as it approaches.
Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.
You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) as submission must be through Turnitin.
For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.
No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.
Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
Extensions and Penalties
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.
Distribution of grades policy
Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.
Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
Support for students
The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
- ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
- ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
- ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
- ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
- ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
- ANUSA supports and represents undergraduate and ANU College students
- PARSA supports and represents postgraduate and research students
Asset pricing and corporate finance, particularly focusing on Asian financial markets and institutions.
Prof Takeshi Yamada