ECON 2002 Corporate Financial Management

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Credit Points 10

Legacy Code 200488

Coordinator Girijasankar Mallik Opens in new window

Description This unit introduces the fundamental concepts of finance theory and the tools of financial decision making in the context of the Australian institutional environment. These concepts relate primarily to the time value of money, risk and return, capital budgeting and capital structure. The unit's purpose is to develop an understanding of the basic practices of financial management from the perspective of a firm (both large and small). Students examine the investment, financing and dividend decisions of corporations.

School Business

Discipline Economics

Student Contribution Band HECS Band 4 10cp

Check your HECS Band contribution amount via the Fees page.

Level Undergraduate Level 2 subject

Pre-requisite(s) ECON 1006 OR
MATH 1030

Equivalent Subjects ECON 2003 - Financial Management FINC 2001 - Corporate Financial Decision Making

Assumed Knowledge

Introductory economics or microeconomics, basic mathematics and statistics.

Learning Outcomes

On successful completion of this subject, students should be able to:

Explain and analyse the investment, financing and dividend decisions of corporations;
Apply the concept of time value of money to financial decision making;
Have knowledge of the sources of finance, and evaluate their costs in the Australian financial environment;
Evaluate capital-expenditure projects and sources of finance;
Evaluate leasing as an instrument of financing;
Demonstrate the financial techniques used to manage current assets and liabilities;
Assess business risk and apply risk management tools.

Subject Content

- financial mathematics and time value of money
- valuation of Securities
- investment decisions
- financing decisions
- Dividend decisions
- capital markets in Australia
- short term financial management
- futures, options and international financial management
- leasing
- Mergers, acquisitions and corporate analysis

Assessment

The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.

Item	Length	Percent	Threshold	Individual/Group Task
Quiz	120 Minutes	30	N	Individual
Report	1000 words	20	N	Individual
Final Exam	2 hours	50	Y	Individual

Prescribed Texts

Comprehensive lecture notes will be provided for students on vUWS, and students will be referred to a variety of reference materials freely downloadable from the internet or available in the library.

Teaching Periods