Year
2020
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 completion of this topic, students will be expected to be able to:

  1. Explain techniques and rules in the process of working capital management

  2. Explain the time value of money, calculate future and present value of a cash flow, and value bonds

  3. Analyse the cost of capital, calculate weighted average cost of capital

  4. Discuss the nature of share capital and value shares

  5. Describe and critique the nature of long term investing decisions and capital budgeting process

  6. Discuss dividend theory and policy, optimal capital structure, calculate the degree of operating and financial leverage.