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.The impact of liquidity on our understanding of financial economics will also be discussed.
Upon successful completion, students will have the knowledge and skills to:
- define the classical finance model that underpins modern finance;
- apply economic concepts to solve for choices made by consumers and asset holders;
- assess the economic efficiency of market outcomes for different market structures, in the presence of market frictions and/or government intervention;
- compare and contrast the information needed for markets to price different types of assets effectively;
- Assessment will consist of a Final Exam, mid-semester exam(s) and in-class quizzes, or some combination thereof. See Class Summary for details. (100) [LO 1,2,3,4]
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130 hours in total over the semester consisting of lectures, tutorials/workshops and private study time.
Requisite and Incompatibility
See Class Summary
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you 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). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
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Offerings, Dates and Class Summary Links
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Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
|Class number||Class start date||Last day to enrol||Census date||Class end date||Mode Of Delivery||Class Summary|
|6278||24 Jul 2023||31 Jul 2023||31 Aug 2023||27 Oct 2023||In Person||N/A|