Year
2019
Units
4.5
Contact
1 x 2-hour lecture weekly
1 x 1-hour on-line tutorial weekly
Prerequisites
1 of BUSN2007, BUSN2037
Enrolment not permitted
BUSN3004 has been successfully completed
Course context
Bachelor of Commerce
Topic description
This topic is concerned with the theory and practice of financial management of business corporations. The concepts and issues introduced in BUSN2037 Financial Management will be extended to consider investment, financing and valuation decisions of the firm at a more advanced level, and also interactions between these decisions. A number of more applied topics will also be covered including real options, corporate acquisitions, corporate restructuring, and corporate governance.
Educational aims
This topic aims to introduce students to the important theoretical foundations and principles that underpin modern corporate finance practice. It also aims to develop an understanding of the relationship between corporate finance theory and practice and effective and responsible governance, decision making and business objectives.
Expected learning outcomes
On completion of this topic students will be expected to be able to:

  1. Identify and evaluate the role of risk in determining project cost of capital.

  2. Evaluate investment decisions under uncertainty using a range of evaluation methods such as sensitivity analysis and decision trees analysis

  3. Apply real options analysis and credit risk analysis

  4. Describe and apply the main techniques for risk management using financial instruments

  5. Describe the theories and applications surrounding a merger or a takeover and the similarities and differences

  6. Identify the various types of corporate restructuring transactions

  7. Explain the significance of agency problems and corporate governance and contrast different corporate governance regimes around the world.