- Class Number 3287
- Term Code 3130
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Jo Drienko
- Dr Jo Drienko
- Dr Michael Roper
- Class Dates
- Class Start Date 22/02/2021
- Class End Date 28/05/2021
- Census Date 31/03/2021
- Last Date to Enrol 01/03/2021
This course is designed to familiarise Master of Business Administration students with the components of the financial system as well as to introduce them to the three basic ideas underpinning finance: the time value of money; diversification; and, arbitrage. The aim of the course is to provide Master of Business Administration students with introductory exposure to financial transactions, institutions and markets including money markets, stock markets, foreign exchange, derivative markets and contracts. It provides students with a solid foundation of finance knowledge for a senior management career.
Upon successful completion, students will have the knowledge and skills to:
- Describe financial transactions, institutions and markets, including money markets, stock markets, foreign exchange, derivatives markets and contracts.
- Explain the ideas behind the time value of money.
- Discuss the concept of diversification, including the risk and return relationship.
- Gauge the value of cash flows relating to a number of financial instruments as well as diverse projects under consideration by the firm.
- Evaluate optimal weights for a portfolio comprising of multiple financial assets.
- Integrate tailored derivative contracts for risk management purposes using the concepts of arbitrage.
- Source financial evidence and data to inform management practice and ethical decision-making.
Students undertaking this course will be taught fundamental skills in Finance that will be applied to real life applications. Students will also be shown how these techniques are applied to research today.
Additional Course Costs
The only additional course costs are a calculator.
Examination Material or equipment
The final exam will contain material from the entire semester. You will require reliable assess to Wattle and a calculator for the duration of the online quizzes and the online exam.
No required textbook.
Titman, S., Martin, T., Keown, A., and J. Martin, Financial Management: Principles and Applications, 8th Edition, Pearson Education, 2019.
Note that the textbook readings from this recommended resource are optional. In addition, this textbook is available to students as a 2 hour loan from the ANU library, and an e-book can be accessed from: https://library.anu.edu.au/record=b5640022.
Students will be given feedback in the following forms in this course:
- Interactions with lecturer and tutor(s) in consultations and live tutorials/workshops/lectures.
- Through assessments where the lecturer and tutors will provide specific feedback.
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.
You final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by that formulate, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed or be the same as the scaled mark of that student), and may result in a score that is either higher or lower than the raw mark calculated.
Support for Students
The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/
If necessary, the lecturer and tutor(s) for this course will contact students on their official ANU student email address. Information about your enrollment and fees from the Registrar and Student Services' office will also be sent to this email address. Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations.
As a further academic integrity control, students may be selected for a 15 minutes individual oral examination of their written assessment submissions.
Any student identified, either during the current semester or in retrospect, as having used ghost-writing services will be investigated under the University's Academic Misconduct Rule.
|Week/Session||Summary of Activities||Assessment|
|1||Topic: Course Admin and an Intro to Financial Mathematics Activity: Lecture, Workshops Reading: Lecture Notes 1|
|2||Topic: Time Value of Money – Valuing Shares Activity: Lecture, Workshops Reading: Lecture Notes 2|
|3||Topic: Time Value of Money – Valuing Debt Instruments Activity: Lecture, Workshops Reading: Lecture Notes 3|
|4||Topic: Time Value of Money – Making Investment Decisions Activity: Lecture, Workshops Reading: Lecture Notes 4||Quiz 1|
|5||Topic: Diversification – Defining Risk and Understanding its Relationship with Return Activity: Lecture, Workshop Reading: Lecture Notes 5||Quiz 2|
|6||Topic: Diversification – Portfolio Theory Activity: Lecture, Workshop Reading: Lecture Notes 6|
|7||Topic: Diversification – The Capital Asset Pricing Model (CAPM), the Required Rate of Return for Risk and the Cost of Capital Activity: Lecture, Workshops Reading: Lecture Notes 7||Quiz 3|
|8||Topic: Arbitrage – Forwards and Futures Activity: On-campus Workshop Reading: Lecture Notes, Workshop Notes|
|9||Topic: Arbitrage – Option Contracts Activity: On-campus Workshop Reading: Lecture Notes, Workshop Notes|
|10||Topic: Takeovers – Definitions and Examples Activity: On-campus Workshop Reading: Lecture Notes, Workshop Notes, Additional Readings|
|11||Topic: Takeovers – Takeovers in Australia Activity: On-campus Workshop Reading: Lecture Notes, Workshop Notes, Additional Readings||Individual Assignment|
|12||Topic: Takeovers – Case Study Activity: On-campus Workshop Reading: Lecture Notes, Workshop Notes, Additional Readings|
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Wattle Quizzes||15 %||19/03/2021||30/04/2021||1,2,3,4,5|
|Individual Assignment||35 %||21/05/2021||28/05/2021||1,2,3,4,5|
|Final Examination||50 %||03/06/2021||01/07/2021||1,2,3,4,5,6,7|
* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details
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 Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.
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.
Course content delivery will take the form of pre-recorded weekly lectures (available via echo360 on Wattle), pre-recorded weekly workshops (available via echo360 on Wattle) and additional on-campus (weekly) workshops (starting in week 2), delivered in dual-delivery format (on campus, streamed live through Zoom and recorded).
Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information.
Assessment Task 1
Learning Outcomes: 1,2,3,4,5
Three online (Wattle) quizzes (each with 20 minutes of writing time) will be conducted throughout the semester to enable students to receive feedback on their learning and understanding of the material. These quizzes will run according to the schedule in the "Class Structure and Content" section of this summary (unless otherwise stated by the lecturer). The content for the quizzes will be limited to the required material for the topic on which the tutorial is held (i.e. previous week’s lecture and workshop material). Every 20-minute quiz will run on Friday of each quiz week over a 60-minute window. The marked quizzes and the solutions will be provided during the following week on Wattle. Each quiz is worth 5% of the overall course grade. In total, the quizzes are worth 15% of the overall course grade. Details pertaining to the submission of quiz answers as well as a practice quiz (worth 0%) will be provided on Wattle and discussed during the first lecture.
Assessment Task 2
Learning Outcomes: 1,2,3,4,5
The assignment, to be completed individually in Excel (with explanatory notes provided throughout the spreadsheet), asks students to produce a valuation of a firm with multiple business units. The students will be required to build and submit a company valuation model based on projected cash flows. The assignment will be submitted online via Turnitin on Wattle (please keep a copy of the assignment for your records). Details of the assignment as well as the associated marking rubric will be provided to the students via Wattle by the end of week four. The due date of the assignment is Friday, May 21 (i.e., end of week 11) at 5:00pm (Canberra-time) and is worth 35% of the overall course grade.
Assessment Task 3
Learning Outcomes: 1,2,3,4,5,6,7
The final examination will be open-book and based on all the content covered throughout the duration of the semester. The final examination is worth 50% of the overall course grade and will be conducted over Wattle. The exam will include a mixture of theoretical and numerical questions. Students will be provided with further details regarding the exam as it approaches (no later than week 10).
Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.
The ANU commits to assisting all members of our community to 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 be familiar with the academic integrity principle and Academic Misconduct Rule, 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 Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.
The assignment must be submitted as an electronic file(s) to the appropriate Turnitin activity on the course Wattle site. You will be required to sign a declaration, in the form of a cover sheet, as part of the submission of your assignment. Please keep a copy of the assignment and the signed cover sheet, for your records.
Hardcopy submissions will not be used in this course.
No late submission of assessment tasks will be permitted. If an assessment task is not submitted by the due date and time, 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. Extensions may be granted 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
Analyst Forecasting, Market Efficiency, Dividend Smoothing
Dr Jo Drienko
Dr Jo Drienko