250799 Finance Fundamentals

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.
Anti-requisite(s): 25742 Financial Management AND 25799 Financial Management

Description

Cash flow is an important element of most businesses or organisations. This subject offers the leaders of tomorrow a practical introduction to corporate financial decision-making.

Students learn how financial assets are valued and the skills to appraise investment projects and recommend financing strategies. They become familiar with pricing theory, capital structures and working capital management. In doing so, considerations of business structures and regulatory environments will be assessed.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1.	apply time value of money techniques to value financial securities
2.	appraise an investment proposal to make an accept/reject decision
3.	recommend a financing strategy, comparing alternative financing arrangements

Contribution to the development of graduate attributes

This subject contributes to the development of the following graduate attributes:

Intellectual rigour and innovative problem solving
Professional and technical Competence

This subject also contributes specifically to develop the following Program Learning Objective(s):

Integrate advanced skills and knowledge in professional business practice by researching and analysing complex information and concepts to support business decisions in local and international contexts (4.1)

Teaching and learning strategies

This subject is taught fully online. Each week is self-paced, with all material disseminated via the learning management system. Students are expected to complete a range of learning activities throughout the week, which provide opportunities to learn and apply the subject contents. Continual feedback is provided via the learning management system to guide students through these activities. Several online sessions are held to allow students to interact with staff and peers. During these sessions, students can ask questions and give and receive feedback.

Content (topics)

Overview of corporate finance
Financial statements and long-term financial planning
Valuation of future cash flows
Capital budgeting
Risk and return
Cost of capital and long-term financial policy
Short-term financial planning and management

Assessment

Assessment task 1: Deep Dives (Individual)

Objective(s):	This addresses subject learning objective(s): 1 and 3
Weight:	30%
Length:	Each deep dive will require about 2 hours for data collection and analysis and 1 hour to answer the questions
Criteria:	Interpretation and analysis of data Appropriate application of formulas and quantitative techniques Correct and accurate answers to questions

Assessment task 2: Case Study (Individual)

Intent:	Part 1 (25%) Part 2 (25%)
Objective(s):	This addresses subject learning objective(s): 1 and 3
Weight:	50%
Length:	Two 3-page reports (based on templates provided to the students)
Criteria:	Part 1 Interpreting the firm’s financial statements Accurate interpretation of the firm’s financial ratios and sensible inferences based on them Well-justified and reasonable forecast of the firm’s capital requirement for the following year Part 2 Accurate valuation of the firm’s financial securities Understanding the firm’s capital structure Estimating a reasonable WACC for the firm and justifying the estimate

Assessment task 3: Analyst Presentation (Individual)

Objective(s):	This addresses subject learning objective(s): 2
Weight:	20%
Length:	A 10-minute recorded presentation
Criteria:	Identification of the incremental cash flows associated with the project Justification of the assumptions used to estimate the cash flows Interpretation of the NPV and IRR of the project Appropriate sensitivity analysis to assess the dependence of the analysis to assumptions Professionalism of the presentation

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.