Course Catalogue

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Financial Management aims to provide students with a thorough understanding of the theory and practice governing corporate financial management. Learning is facilitated through lectures, seminars, assignments and newspaper articles. Examples and exercises from corporations will be used to illustrate financial concepts and foster learning through experimentation and practice.

Lectures: 2 hrs x 20 weeks

Seminars: 1hr x 8 weeks (4x Semester 1, 4x Semester 2)

Please refer to MyCampus for timetable

Entry to an Honours programme in Business and Management or a GPA of 12 in the level 2 courses listed below for students taking an Honours programme in another subject:
• MGT2010 Business Decision Analysis
• MGT2011 Fundamentals of Human Resource Management
• MGT2012 Services and Operations Management
• MGT2014 Entrepreneurship

None

Reassessments are normally available for all courses, except those which contribute to the Honours classification. For non Honours courses, students are offered reassessment in all or any of the components of assessment if the satisfactory (threshold) grade for the overall course is not achieved at the first attempt. This is normally grade D3 for undergraduate students and grade C3 for postgraduate students. Exceptionally it may not be possible to offer reassessment of some coursework items, in which case the mark achieved at the first attempt will be counted towards the final course grade. Any such exceptions for this course are described below. 

Financial Management aims to provide students with a thorough understanding of the theory and practice governing corporate financial management. The course aims to introduce students to fundamental concepts in finance and increase financial literacy covering the investment decision, the financing decision and the payout decision. To make sure these decisions are taken efficiently and effectively, managers need the guidance of finance theory as well as empirical evidence. This course introduces some of the key concepts of modern finance, capital structure theories including portfolio theory and the capital asset pricing model, and agency theory. The course also introduces students to an analysis of security valuation (of bonds and equity), capital appraisal methods, and cost of capital analysis, beyond others.

By the end of the course, students should be able to:

1. Analyse and assess the core functions of financial management, and evaluate the complexity of financial decision-making in various business settings.

2. Interpret and apply the present value principle in a range of financial contexts and utilize advanced investment appraisal techniques to evaluate various investment decision-making.

3. Examine the role of capital markets in financial decision-making and apply different methods used to value debt and equity instruments.

4. Explain and analyse the significance of the relationship between risk and return, and apply this understanding to real-world corporate environments.

5. Evaluate and compare different capital structure theories, both in the context of perfect capital markets and under market imperfections, and formulate reasoned judgments about their practical implications.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.