Year
2021
Units
4.5
Contact
1 x 1-hour lecture weekly
1 x 2-hour tutorial weekly
Prerequisites
^ = may be enrolled concurrently
1 BUSN1001 - Accounting Principles
1a BUSN1011 - Accounting For Managers
2 ^ BUSN1009 - Quantitative Methods
3 BUSN1015 - Foundations of Finance
Must Satisfy: ((1 or 1a) and 2 and 3)
Enrolment not permitted
BUSN2007 has been successfully completed
Assumed knowledge
Elementary knowledge of economics, financial accounting statements and quantitative methods. Completion of BUSN1013 Economics for Business would be useful.
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 and the financial structure decision.

Educational aims

This topic aims to:

  • Identify the major concepts and analytical tools used in the theory and practice of financial management
  • Explore the role and objectives of financial management and business financial planning
  • Explain and define ratio analysis, working capital management, risk and return, capital budgeting, the capital market, sources of finance, the cost of capital, operating and financial leverage and the financial structure decision
Expected learning outcomes
On completion of this topic you will be expected to be able to:

  1. Distinguish the financial objectives governing an organisation's decisions
  2. Perform financial statements analysis
  3. Forecast future cash flow needs and prepare budgets and pro forma financial statements
  4. Explain the factors influencing the appropriate level of working capital and how to manage cash and marketable securities, accounts receivable and payables
  5. Describe the relationship between risk and return, diversifiable and non-diversifiable risk, and their impact on asset pricing
  6. Explain the importance, role and techniques of capital budgeting
  7. Value long-term debt, preference shares and ordinary shares, and determine the cost of capital
  8. Define and calculate operating, financial and total leverage, and explain the implications for the target capital structure

Key dates and timetable

(1), (2)

Each class is numbered in brackets.
Where more than one class is offered, students normally attend only one.

Classes are held weekly unless otherwise indicated.

FULL

If you are enrolled for this topic, but all classes for one of the activities (eg tutorials) are full,
contact your College Office for assistance. Full classes frequently occur near the start of semester.

Students may still enrol in topics with full classes as more places will be made available as needed.

If this padlock appears next to an activity name (eg Lecture), then class registration is closed for this activity.

Class registration normally closes at the end of week 2 of each semester.

Classes in a stream are grouped so that the same students attend all classes in that stream.
Registration in the stream will result in registration in all classes.
  Unless otherwise advised, classes are not held during semester breaks or on public holidays.