Get down to the business of financial processes, practices and decision-making. Test the strengths and limits of financial models for valuing debt. Consider interest rate principles. Solidify your understanding of the financial markets.
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At the completion of this subject students will be able to:
- explain models for valuing debt and equity instruments, and their limitations
- appraise methods for evaluating investment decisions
- demonstrate the rationale for using various forms of funds and their implications for the value of the firm
- appraise the conflicting requirements of investment, retention of profits and returns to owners in an international context
- The Role of Financial Management and the Tax Environment
- The Time Value of Money and Interest Rate Principles
- Multiple Cash Flows and Valuation Principles
- Risk and Rates of Return
- Valuation of Bonds and Shares
- Cost of Capital
- Capital Budgeting - Investment Criteria (NPV)
- Capital Budgeting - Investment Criteria (Other Investment Criteria)
- Capital Budgeting Project Cash Flow
- Risk in Capital Budgeting
You should not enrol in this subject if you have successfully completed any of the following subject(s) because they are considered academically equivalent:
- CUR-BAN23-Introduction to Finance Principles
- USA-ACG32 (Not currently available)
You must have successfully completed the following subject(s) before starting this subject:and one of
- GRF-AFE135-Business Data Analysis
- SWI-STA10003-Foundations of Statistics
- GRF-AFE134 (Not currently available)
No additional requirements
To explore the processes, practices and decision outcomes associated with investment and financing decisions made within businesses, and to equip students to undertake investment and financing analysis.
This subject includes material covering: the financial environment and the role of finance in business: financial objectives of firms, financial mathematics, cash flow, time value of money; financial markets and sources of finance; investment evaluation: net present value and other criteria; risk and uncertainty in capital investment decisions; capital structure and cost of capital: intermediate and long term funding; debt valuation; equity models, dividend valuation, capital asset pricing model; weighted average cost of capital; capital structure and the value of the firm; leverage.
- 2000 words (45%)
- Invigilated Exam - 3 hours (55%)