Year
2016
Units
4.5
Contact
1 x 1.5-hour tutorial weekly
1 x 2-hour seminar weekly
Prerequisites
BUSN9226 - Accounting for Managers
Enrolment not permitted
BUSN9202 has been successfully completed
Assumed knowledge
BUSN9233 (BUSN9208) Data Analysis for Decision Making and BUSN9230 (BUSN9205) Economics for Business
Course context
Master of Business Administration; Graduate Diploma in Business Administration; Graduate Certificate in Business Administration
Topic description
This topic introduces students to the major concepts and analytical tools used in the theory and practice of financial management. The topic will cover the role and objectives of financial management, business financial planning and ratio analysis, working capital management, risk and return, capital budgeting, the capital market, sources of finance, the cost of capital, operating and financial leverage, the financial structure decision and the dividend decision.
Educational aims
This topic aims to:
  • identify the major concepts and analytical tools used in the theory and practice of financial management
  • examine the role and objectives of sound financial planning and management in business organisations.
Expected learning outcomes
On successful completion of this topic, students will be able to:
  1. Perform financial statement analysis
  2. Describe the procedures for assessing and measuring the risk of investment assets
  3. Value long-term debt (bonds/debentures), preference shares and ordinary shares
  4. Apply capital budgeting techniques in capital investment decisions
  5. Determine the cost of capital of a firm
  6. Define and calculate operating, financial and total leverage, and understand their implications for the target capital structure of a firm
  7. Discuss the importance of managing working capital
  8. Work collaboratively to conduct research and present the findings in report format.