Principles of Finance - 2017

To enrol in this unit, you must be accepted into a course from the provider. Read before you start

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
  • Availability for 2017: Sess 1 , Sess 3
  • Assessment: Assessment - Linked CLOs: 1, 2, 3 (20%) , Essay - Linked CLOs: 1, 2, 3, 4 (30%) - Learn more

Unit provided by

2017 Fees
Domestic 4,080.00
International 4,330.00

This unit was previously known as Financial Economics.

This unit is designed to familiarise students with the components of the financial system in the context of the risk-return paradigm. It covers the concepts of time value of money, financial instruments, basic asset valuation, currency exchange rates, and derivative instruments (futures and options). The aim of the unit is to provide the fundamental theoretical aspects of finance and a solid foundation for later studies.

On successful completion of this unit you will:

  1. CLO1: Be able to recognise the scope and limitations of finance theory in seeking an understanding of financial markets and financial behaviour
  2. CLO2: Be able to understand the tools available to analysts seeking to identify the market valuation of bonds and shares, and will understand the potential of accounting statements in informing the analyst’s assessment of the firm’s financial status and viability
  3. CLO3: Be able to recognise the dynamic of debt financing in leading to “bubbles and bursts” in the economy and the stock markets
  4. CLO4: Possess a clear understanding of the essential forces that influence a currency’s exchange rate
  5. CLO5: Understand the basics of derivative instruments (futures and options) and how they can be used to hedge currency exchange risk.
  • Assessment — Linked CLOs: 1, 2, 3 (20%)
  • Essay — Linked CLOs: 1, 2, 3, 4 (30%)
  • Invigilated Exam — Linked CLOs: 1, 2, 3, 4, 5 (50%)
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.

2A short history of stock markets
3The time value of money
4Market debt, interest rates and valuation
5Portfolio theory and the valuation of equity shares
6Market efficiency, the CAPM and the cost of equity capital
7Accounting statements and ratio analysis
8Risk and financial leverage
9Currency exchange rates
10Derivative instruments: futures and options
11Hedging currency risk with derivative instruments
12Course review

This unit is delivered using the following methods and materials:

Instructional Methods

  • Discussion Forum/Discussion Board
  • Online assignment submission
  • Web links

Online materials

  • Audio/Video - Streaming
  • FAQs
  • Printable format materials
  • Quizzes
  • Resources and 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.

Textbook information for this unit is currently being updated and will be available soon. Please check back regularly for updates. Alternatively, visit the The Co-op website and enter the unit details to search for available textbooks.

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