20742 Financial Management
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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 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Anti-requisite(s): 250799 Finance Fundamentals AND 25742 Financial Management AND 25746 Financial Management: Concepts and Applications AND 25799 Financial Management
Description
This subject aims to introduce students to finance and helps them acquire the basic analytical skills required to make informed financial decisions. Topics include the goals of financial management, introduction to security market regulation, ethics and the firms investment and financing decisions. Working capital management and international aspects of financial management are also introduced.
Subject learning objectives (SLOs)
| 1. | demonstrate an understanding of the principles and objectives of financial decision-making |
|---|---|
| 2. | assess ethical problems and issues of social responsibility in a corporate setting |
| 3. | apply time value of money techniques to financial decision-making problems |
| 4. | assess a firm’s long-term financing options, and advise its managers on how to raise capital |
| 5. | evaluate corporate investment proposals, and recommend whether they should be accepted or rejected |
Contribution to the development of graduate attributes
The subject lays out the foundations of finance with a particular emphasis on financial decisions taken by firms. The course covers all major areas of finance which will assist both finance specialists and others to understand financing and investment decisions. It develops a framework for these decisions including risk assessment, law and ethical issues in finance.
This subject contributes to the development of the following graduate attribute(s):
- Social responsibility and cultural awareness
- Professional and technical competence
This subject develops the following program learning objective(s) for the Master of Finance and Master of Financial Analysis
- Critically appraise and apply sustainability principles to decisions in business situations (3.1)
- Evaluate practices of Indigenous businesses, their partners and financial innovations that are relevant to Indigenous organisations and people (3.2)
-
Apply ethical principles in professional financial practice (4.1)
Teaching and learning strategies
The subject will be taught using a weekly three hour seminar format. Readings will be provided for all topics and videos for some topics to enable on-line learning activities prior to coming to class. These are timetabled in the Program and are available via the UTS learning management system. This will enable practice oriented collaborative learning activities to be able to be undertaken in class. These will include (but are not limited to) discussion and anlaysis of ethical case studies, risk analysis, financing and investment decisions. Students will also participate in similar individual activities in class. Every class will be supplemented with both printed and electronic learning materials and resources. The UTS learning management system will be used to share this and all other information and enable interaction between staff and students outside of class time via the discussion board. Students will use appropriate computer software such as spreadsheets and word processors to complete assigned tasks. Assessments for this subject include active collaborative (group) learning which will be undertaken outside class time. Additional resources will be available for students to assist them in how to work effectively in groups. Self-learn questions are set for students to do outside class time which will enable formative individual feedback throughout the semester.
Content (topics)
1. Introduction to finance, the goals of finance and agency problems
2. Financial securities, debt and equity
3. The role of law and ethics in finance
4. Financial mathematics and asset valuation
5. Risk, asset selection and capital budgeting
6. Cost of capital and capital structure
7. Working capital management and Financial leases
8. International finance
Assessment
Assessment task 1: Online Quizzes (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 5 |
|---|---|
| Weight: | 20% |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Financial News Report (Individual)
| Objective(s): | This addresses subject learning objective(s): 2 |
|---|---|
| Weight: | 10% |
Assessment task 3: Case Study (Group)
| Objective(s): | This addresses subject learning objective(s): 4 |
|---|---|
| Weight: | 20% |
Assessment task 4: Final Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 3, 4 and 5 |
|---|---|
| Weight: | 50% |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Ross, Trayler, Koh, Hambusch, Glover, Westerfield, Jordan; Fundamentals of Corporate Finance, 8th Australian Edition, McGraw-Hill 2021
Other resources
A scientific calculator