Units
Advanced Managerial Finance
Unit code: EFN412
Contact hours: 3 per week
Credit points: 12
Information about fees and unit costs
This unit expands on material introduced and developed in EFN406 Managerial Finance. Its objective is to examine the key decisions made by corporate financial managers (that is the investment, financing and dividend decisions). Topics include: the financing decision & capital structure, debt versus equity, lease versus debt, term structure versus default structure of interest rates; the dividend decision & dividends versus capital gains, franked versus unfranked income; firm valuation, free cash flow model; evaluation of takeovers; Risk and Return & diversification, the CAPM model, its practical application and its relationship to efficient market hypothesis; forwards, futures, options, warrants, convertibles and risk management using financial derivatives.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 1 | Yes |
| 2013 Semester 2 | Yes |
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
An intermediate level postgraduate unit in Finance which extends the study of financial management introduced in Managerial Finance. It provides an in depth analysis of the financial management of a business organisation and develops further the framework necessary for the analysis of other and more advanced aspects of domestic and international business finance. With the growing sophistication of global financial markets, this unit provides an excellent base for students wishing to pursue a career in the field.
Aims
The aim of this unit is help students take the knowledge and theoretical framework developed in prior finance units and apply them to the solution of practical problems in the field of finance.
Objectives
Course Learning Goals (Postgraduate)
The QUT Business School has established the Assurance of Learning (AoL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:
Have knowledge and skills pertinent to a particular discipline (KS)
1.1 Well-researched knowledge and critical understanding applied to issues at the forefront of a specialised discipline area
1.2 Ability to select and use effectively a range of tools and technologies to locate and/or generate information appropriate to the disciplinary context
Be critical thinkers and effective problem solvers (CTA)
2.1 Apply logical, critical and creative thinking and judgement to generate appropriate solutions to problems in the disciplinary context
Be professional communicators in an intercultural context (PC)
3.1 Ability to create and present professional documents and/or reports using high levels of analysis/synthesis/evaluation for a range of contexts and audiences
3.2 Ability to orally communicate and justify ideas and information, at a professional level, for a variety of contexts and audiences, including peers and discipline specialists
Be able to work effectively in a Team Environment (TW)
4.1 Operate effectively and with flexibility to achieve common goals in collaborative settings, using a range of skills, including leadership, negotiation, reflection, proactivity and support for team members
Have a Social and Ethical Understanding (SEU)
5.1 Apply knowledge of the ethical, social and cultural dimensions relevant to business situations, including appropriate standards or codes of practice, to provide courses of action
Unit Objectives
On completion of this unit students should be able to:
1. Understand and quantify the concepts of risk and diversification
2. Understand and apply the CAPM to solving finance problems
3. Evaluate capital structure issues
4. Solve a lease versus borrow decision
5. Understand how default risk and term to maturity impact on interest rates
6. Evaluate dividend decisions and understand dividend imputation systems
7. Perform valuations of investments using both multiplier and cash flow approaches
8. Understand the issues surrounding takeovers
9. Comprehend the nature of forwards, futures, options, warrants, and convertibles
10. Plan and develop financial risk management strategies
The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.
Content
Approaches to Teaching and Learning
This unit has a formal class contact time in lectures and tutorials of approximately three hours (lecture two hours, tutorial one hour). In addition a student should expect to devote, on average, nine further hours per week on self-study and assignments. The nine non-formal hours should be seen as a guide only, and not to be regarded as a restriction on the hours devoted to the unit.
Resources such as copies of overheads for each lecture topic, weekly reading and tutorial guides, assignments and solutions are provided on the unit Blackboard site at < http://blackboard.qut.edu.au >. Students will need their student number and password.
Students are expected to read the relevant material (textbook and notes), do the self-study questions provided and to review the lecture slides before attending the lecture. A weekly reading and tutorial guide can be found on the Blackboard site. The reading guide indicates the material students should concentrate on; which material should be read lightly and which material should be studied in depth. Also included in the weekly guide are a number of self-study questions with solutions. These form an important part of the work in this unit and are a good indicator of possible examination questions.
Solutions to the weekly self study questions will be provided in the weekly reading and tutorial guide and these will be discussed in the tutorial. Nevertheless, students should study this material before attending the tutorial, so that effective use can be made of the time allocated to solve difficulties and discuss further issues. It is not the purpose of the tutorial to work through each question from scratch, but rather to resolve any problems or difficulties that arise from the week's work.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Blackboard site.
Assessment
Students will receive feedback in various forms throughout the semester which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
- Direct: to individual students, either in written form or in consultation
- Indirect: to the whole class
Assessment name:
Mid-semester Examination
Description:
The mid-semester exam will cover topics 1 - 5 inclusive. It is a closed book multiple choice exam.
Length/Duration: 1 hour + 15 minutes perusal
Formative or Summative: Formative and Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1)
Weight:
20%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Week 7
Assessment name:
Group Assignment
Description:
The group assignment will cover topics 1 - 5 inclusive
Formative or Summative:Formative and Summative
Relates to objectives:
: Unit objectives: 1, 2, 3, 4, 5 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1)
Weight:
20%
Internal or external:
Internal
Group or individual:
Group
Due date:
Week 8
Assessment name:
End of Semester Examination
Description:
The final exam will cover all topics but with emphasis on topics 6 through 11 inclusive. The final paper will consist of short answer questions. It is closed book exam.
Length/Duration: 2 hours + 10 minutes perusal
Formative or Summative: Summative
Relates to objectives:
Unit objectives: 6, 7, 8, 9, 10 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1), SEU (5.1)
Weight:
60%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Central Exam Period
Academic Honesty
QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.
A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.
Resource materials
Prescribed Text
Peirson G., Brown R., Easton S., Howard P. & Pinder S. (2012) Business Finance. (11th edn.). McGraw Hill.
Suggested Supplementary Textbooks (Optional)
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2007) Fundamentals of Corporate Finance. (4th edn.). McGraw Hill.
or
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2004) Fundamentals of Corporate Finance. (3rd edn.). McGraw Hill.
Other Resources
Additional references and resources, including lecture overheads, additional notes, weekly reading and tutorial guides, assignments and solutions can also be found at the unit's Blackboard site: https://blackboard.qut.edu.au/.
There are several other suitable texts that you may wish to use. Two are listed below:
Bishop, S.R., Faff, R.W., Oliver, B., & Twite, T. G. (2004) Corporate Finance. (5th edn.). Prentice Hall.
Brealey, R., Myers S., Partington G., & Robinson D. (2000) Principles of Corporate Finance. McGraw Hill.
Risk assessment statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.
Last modified: 13-Feb-2013
