University of Technology Sydney

25300 Fundamentals of Business Finance

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 2023 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:


Result type: Grade and marks

There are course requisites for this subject. See access conditions.


The subject introduces and develops the core technical and theoretical concepts of Finance and illustrates their application to practical financial decision-making problems. Two crucial concepts are introduced: (1) the time-value of money (TVM); and (2) financial risk. TVM techniques are applied to the valuation and management of financial instruments, such as annuities, perpetuities and amortising loans, and to financial securities, such as stocks and bonds. Different ways of measuring financial risk are considered and the fundamental relationship between risk and return is demonstrated empirically and explained. TVM and risk analysis techniques are applied to investment and financing decision problems in a Corporate Finance context. In particular, students learn how firms decide which projects to invest in and how they choose to raise the capital to fund those investments.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. describe the principles and objectives of financial decision-making
2. apply time-value of money techniques to the valuation of financial instruments and financial securities
3. demonstrate an understanding of financial risk, its measurement, and its relationship to return
4. evaluate a corporate investment proposal and provide a recommendation to accept or reject it
5. assess a firm’s financing options and propose a strategy for raising capital

Contribution to the development of graduate attributes

The subject contributes to the Bachelor of Business by providing students with an introduction to the core technical and theoretical concepts of finance. It exposes students to the practical issues around optimally allocating resources among competing alternatives. It introduces appropriate tools, techniques and skills to make informed financial decisions. This subject will develop technical skills relevant to making investment and financing decisions, for example, whether a business should invest in a new project or issue additional equity. These technical skills are linked to the Faculty’s graduate attributes that develop intellectual rigour and creative problem-solving, as well as professional and technical competence. Students will apply technical skills during tutorial classes, online quizzes, group case study and final exam.

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

  • Intellectual rigour and innovative problem solving
  • Communication and collaboration
  • Professional and technical competence

This subject also contributes specifically to introduce the learning required to deliver the following Program Learning Objectives:

  • Apply evidence, creativity and critical reasoning to solve business problems (1.1)
  • Demonstrate ability to work independently and with others as a member of a team to achieve an agreed goal (2.2)
  • Apply technical and professional skills to operate effectively in business (4.1)

Teaching and learning strategies

The teaching and learning strategies include blended and active learning strategies. Students are required to develop their knowledge independently prior to attending class, using lecture materials, videos and textbook readings, as well as assigned homework and online multiple-choice questions. This knowledge will enable active and collaborative learning in class. In-class activities include face-to-face instruction, group collaboration and class discussion of homework problems, question sets and tutorial problems.

Students will receive extensive feedback on their performance throughout the semester. This includes automated feedback on online quizzes and written feedback on case study submissions. Students will also receive feedback on their homework and tutorial answers and verbal feedback on their in-class contributions. The learning management system (LMS) will be used to provide feedback, to disseminate relevant information about the subject, and to facilitate online collaboration via the discussion board.

Content (topics)

  • Introduction to finance and the objectives of a firm
  • The time-value of money
  • Valuation of debt and equity securities
  • The risk-return relationship
  • Capital budgeting decisions: evaluation methods, cash flow analysis, incremental cash flows, issues in investment evaluation
  • Financing decisions: sources of finances, financing mix, cost of capital, issues in capital structure choices


Assessment task 1: Online quizzes (Individual)*


This addresses subject learning objective(s):

1, 2 and 3

Weight: 30%

40 minutes

  • Evidence of an understanding of financial decisions and the objectives of a firm
  • Application of TVM techniques solve investment problems and value financial securities
  • Application of asset pricing theory to value securities and determine cost of capital
  • Analysis of the capital structure of a firm
  • Evaluation of proposals for raising capital

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Case Study (Group)


This addresses subject learning objective(s):


Weight: 20%
  • Identification and analysis of cash flows of proposal
  • Application of TVM techniques to cash flows
  • Professional and informative presentation of results and recommendations

Assessment task 3: Exam (Individual)


This addresses subject learning objective(s):

1, 2, 3, 4 and 5

Weight: 50%
  • Evidence of an understanding of the principles of financial decision-making
  • Application of TVM techniques to value securities and solve investment problems
  • Evidence of an understanding of risk and its relationship to return
  • Application of asset pricing models to value risky assets and determine cost of capital
  • Evaluation of investment proposals
  • Analysis of corporate capital structure
  • Evaluation of alternative for raising capital

Minimum requirements

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

Required texts

The lecture/workshop notes/slides/videos, tutorial material and other resources are available on Canvas.

Recommended texts

The following textbooks are optional, you may find them useful, but it is for you to decide whether you purchase them or borrow them from the library. The knowledge and skills that you need to learn and develop is covered sufficiently in the lecture/workshop/tutorial material available on Canvas. If you are the kind of learner that needs the support of the textbook to supplement your learning then use the following textbook:
Essentials of Corporate Finance by Ross, Trayler, Hambusch, Koh, Westerfield and Jordan, 5th Edition, McGraw-Hill, 2019 (referred to as Ross).

Fundamentals of Business Law UTS Custom by Barron, 1st edition, McGraw-Hill, 2015.


Robert Parrino, David S. Kidwell, Hue Hwa Au Yong, Michael Dempsey, Nigel Morkel-Kingsbury, Samson Ekanayake, Jennifer James, James Murray, Fundamentals of Corporate Finance, Australasian 3rd Edition, Wiley, 2018.