FIN516 Corporate Finance (8)

CSU Discipline Area: Economics and Finance (ECFIN)

Duration: One session

Abstract:

This subject explores the key financial decisions faced by businesses in a modern economy. These decisions relate to funding business operations, evaluating investment proposals and the distribution of profits to providers of funds. It provides the basis concepts and theory for further studies in finance.

+ Subject Availability Modes and Locations

Session 1
Internal	CSU Study Centre Melbourne
Internal	CSU Study Centre Sydney
Distance	Bathurst
Session 3
Distance	Bathurst

Continuing students should consult the SAL for current offering details: FIN516

Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Enrolment restrictions:

Not available to students who have completed ACC515 , FIN510 or FIN571

Objectives:

Upon successful completion of this subject, students should:

be able to explain the scope of the finance function and its role in corporate management;
be able to explain relevant finance theory that will assist in the evaluation of investment, financing and dividend policies of firms through critical analysis and evaluation;
be able to apply acquired skills in the identification and analysis of financial problems;
be able to communicate and analyse financial data at an appropriate level for post-graduate finance students.

Syllabus:

The subject will cover the following topics:

Introduction: distinguish between different types of business structures and identify the major corporate financial decisions and corporate objectives.
Time Value of Money: present and future values including application to the valuation of debt and equity securities.
Investment Evaluation Methods/Capital Budgeting: use of a number of accepted analytical techniques to evaluate capital investment projects.
Capital Investment Decisions and Risk Analysis: interest rate risk and the term structure of interest rates.
Risk and return: measurement of risk and return including portfolio theory and the Capital Asset Pricing Model.
Cost of Capital: estimation of individual sources of finance and the weighted average cost of capital.
Capital Structure: capital structure theories and concepts, and factors which influence a firm?s financing strategies.
Long term debt and leasing: evaluation of leasing vs other debt sources.
Dividend Policy: evaluation of theories relating dividend policy to share price and the cost of capital.

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