Financial Decision Making - 2016

To enrol in this unit, you must be accepted into a course from the provider. Read before you start
This page is for past year, View 2017 unit details.

Unit summary


  • Level of Study: Postgraduate
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: No
  • Duration: 13 weeks
  • Government loans available: FEE-HELP
  • Availability for 2016: Sess 1
  • Assessment: Assignment (30%) , Invigilated Exam (50%) - Learn more

Unit provided by

2016 Fees
Domestic 2,760.00
International 3,010.00

Financial Decision Making provides you with an introduction to some of the key skills required for good financial management, linking together strategic decision making concepts with day-to-day management decisions. The unit adopts a practical approach using examples taken from Australian companies as well as large international companies. It equips you with techniques and skills that enable you to objectively analyse and evaluate alternatives from a solid theoretical base.

Financial Decision Making is integral to the continued development of every firm in every industry. The effective financial management of firms, large or small, private or publicly listed is paramount for the growth and financial health of any economy. Those imbued with the task of decision making and policy implementation have a responsibility to the firm itself, the employees, the providers of debt capital and the shareholders. Topics covered in this unit embrace the three key decisions confronting business: The Investment Decision; The Financing Decision; and the Dividend Decision.

At the completion of this unit students will be able to:

  1. demonstrate an understanding of fundamental concepts in finance
  2. understand why wealth maximisation is an appropriate corporate goal
  3. understand the issues surrounding agency relationships
  4. assess the impact of interest rates on business decisions
  5. demonstrate an understanding of the concepts of portfolio theory and competence in calculating portfolio returns and risk
  6. understand the applicability of the Capital Asset Pricing Model to share valuation
  7. determine whether shares are under/overvauled
  8. understand and use valuation models for equity, debt instruments and the firm as a whole
  9. understand the advantages and disadvantages of the most commonly used methods of investment evaluation
  10. differentiate between the various costs of capital and calculate these costs
  11. understand the importance of capital structure in decision making
  12. evaluate the profitability of potential investments, using the net present value method
  13. recognise the impact of dividend policy for companies
  14. understand the importance of capital structure in decision making.
  • Assignment (30%)
  • Invigilated Exam (50%)
  • Test — Online (20%)
For more information on invigilated exams see Exams and results

There are no prerequisites for this unit.

  • Broadband access

In order to enrol in this unit, you must be accepted into one of the following courses:

Please visit the course details page and read the Requirements tab for more information about eligibility.

This unit addresses the following topics.

2Time Value Money & Financial Mathematics
3Risk & Rates of Return
4Valuation of Bonds & Shares
5Capital Budgeting; concepts & methods
6Cost of Capital
7Financial Leverage
8Planning the financing mix
9Dividend policy & internal financing

This unit is delivered using the following methods and materials:

Instructional Methods

  • Discussion Forum/Discussion Board
  • Online assignment submission
  • Podcasting/Lecture capture
  • Standard Media
  • Web links

This unit is a core requirement in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a unit.

Click on the titles of the listed books below to find out more:

Required textbooks

  • Financial Decision Making (RMIT Custom Publication)

    By:Code (Petty)

    ISBN: 9781442561854


    Supplier:Go to The Co-op Bookshop

  • Fundamentals of Financial Management


    ISBN: 9781285867977


    Supplier:Go to The Co-op Bookshop

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