Postgraduate RMI-MPAC70-2019

Financial Decision Making

Zero in on the key investment, financing and dividend decisions that managers make. Note the advantages and disadvantages of the sector’s most popular investment evaluation methods. Learn from real case studies about businesses’ financial decisions.

2019

Student rating

Study method

100% online

Available loans

FEE-HELP

Assessments

Subjects may require attendance

Prior study

Not required

Australia's largest dual-sector institute, offering both TAFE and higher education, RMIT University proudly delivers work-related education and practical research relevant to current business and community needs. More than 60,000 students study with RMIT, and many of their degrees are available through Open Universities Australia.

Subject details

What you'll learn

On successful completion of this subject you will be able to:

CLO1: Appraise financial decision-making theories and practices and apply them to real world financing decisions
CLO2: Identify appropriate models to value equity, debt, capital and the firm as a whole.
CLO3: Compare the advantages and disadvantages of the most commonly used methods to evaluate investment strategy.
CLO4: Differentiate between the various costs of capital and calculate these costs.
CLO5: Assess the significance of capital structure and examine its importance in decision making.
CLO6: Identify the impact of dividend policy (as it applies to firms) and prescribe ways to overcome shareholders’ diverse requirements.
CLO7: Describe the importance of liquidity management in the context of the risk return trade-off together with operational strategies.

Topics covered

- Introduction and overview of financial Management
- Valuation of Financial Assets & Time Value of Money
- Risk & Return - Capital Market Theory
- Debt and Share Valuation
- Capital Budgeting
- Cost of capital
- Capital structure policy
- Dividend policy
- Working capital management
Study resources
- Instructional methods
  - Discussion forum/Discussion Board
  - Online assignment submission
  - Online Quizzes/Tests
- Online materials
  - Printable format materials
  - Online Assessment

Entry requirements

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

Core

RMI-PAC-MAS-2019
RMI-PAC-GCE-2019
RMI-CPA-MAS-2019

Elective

OUA-PSU-GCE-2019
UNE-PRO-GCE-2019

Special requirements

No special requirements

Description

This subject provides you with the key knowledge and skills required for financial management linking together strategic decision making concepts with day-to-day management decisions. The subject 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.

This subject embraces the three key decisions confronting business: The Investment Decision, The Financing Decision and The Working Capital Decision.

Assessments

Invigilated Exam - Linked CLOs: 1 - 7 (50%)
Mid-Session Test - Linked CLOs: 1, 2, 3 (20%)
Assignment - Linked CLOs: 1, 2, 3, 6 (30%)

Textbooks

Related degrees

postgraduate RMI-PAC-MAS-2019

Master of Professional Accounting

postgraduate RMI-PAC-GCE-2019

Graduate Certificate in Professional Accounting

postgraduate RMI-CPA-MAS-2019

Master of Professional Accounting CPA Australia Extension

postgraduate OUA-PSU-GCE-2019

Postgraduate Single Subjects

postgraduate UNE-PRO-GCE-2019

Graduate Certificate in Professional Practice