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FIN516 Corporate Finance (8)

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 basic concepts and theory for further studies in finance.

+ Subject Availability Modes and Location

Session 1
OnlineBathurst Campus
On CampusCSU Study Centre Melbourne
On CampusCSU Study Centre Sydney
Session 3
OnlineBathurst Campus
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.

Subject information

Duration Grading System School:
One sessionHD/FLSchool of Accounting and Finance

Enrolment restrictions

Not available to students who have completed ACC515, FIN510 or FIN571
Incompatible subject(s)Related subject(s)
ACC515 FIN510 FIN571 FIN571 There is substantial overlap in content
FIN510 There is substantial overlap in content
ACC515 There is substantial overlap in content

Learning Outcomes

Upon successful completion of this subject, students should:
  • be able to assess critically the scope of the finance function and its role in corporate management;
  • be able to synthesise relevant finance theories 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 evaluation of financial data to enable informed decision making;
  • 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;
  • 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, as well as factors which influence the financing strategies of businesses;
  • Dividend policy: evaluation of theories relating dividend policy to share price and the cost of capital.

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The information contained in the 2018 CSU Handbook was accurate at the date of publication: 18 October 2017. The University reserves the right to vary the information at any time without notice.