maf203 guide_t22015

Faculty of Business and Law

MAF203 Business Finance

Deakin University Unit Guide

Trimester 2, 2015DRAF

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11 June 2015

CONTENTS

WELCOME ........................................................................................................................................................ 2

CONTACT DETAILS ......................................................................................................................................... 2Unit chair .................................................................................................................................................. 2Unit chair details ...................................................................................................................................... 2Other staff ................................................................................................................................................. 2Administrative queries .............................................................................................................................. 3

IMPROVEMENTS IN RESPONSE TO STUDENT FEEDBACK .................................................................... 3

UNIT OVERVIEW ............................................................................................................................................. 3Unit code ................................................................................................................................................... 3Unit title .................................................................................................................................................... 3Contact hours ........................................................................................................................................... 3Study commitment .................................................................................................................................... 4Unit prerequisite(s) .................................................................................................................................. 4Unit corequisite(s) .................................................................................................................................... 4Unit incompatible(s) ................................................................................................................................. 4

DESCRIPTION OF UNIT ................................................................................................................................. 4

ACADEMIC CALENDAR .................................................................................................................................. 4

UNIT TIMELINES ............................................................................................................................................ 4

UNIT LEARNING OUTCOMES ....................................................................................................................... 5

UNIT LEARNING ENVIRONMENT ................................................................................................................ 6

UNIT ASSESSMENT ........................................................................................................................................ 7Overview ................................................................................................................................................... 7Hurdle requirements ................................................................................................................................ 7Summative assessment ............................................................................................................................. 7- Summative assessment task 1 ................................................................................................................ 7- Summative assessment task 2 ................................................................................................................ 8- Summative assessment task 3 ................................................................................................................ 8Note .......................................................................................................................................................... 9Assignment submission ............................................................................................................................. 9

UNIT LEARNING RESOURCES ...................................................................................................................... 9Essential learning resources ..................................................................................................................... 9Recommended learning resources ......................................................................................................... 10DR

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Deakin University, Faculty of Business and LawMAF203 Business Finance - Trimester 2, 2015

11 June 2015 Page 2 of 10

WELCOME

Welcome to MAF203 Business Finance. This is an extremely interesting and rewarding Unit for studentswho are keen to understand how financial decisions are made by business organisations.The theory of finance plays a significant role in effective financial management of firms. Financial managersmust have solid finance foundation to develop sound financial policies to benefit their firm and itsshareholders. This course provides an introduction of key theories and skills required for good financialmanagement. It introduces financial concepts, analytical tools and issues that provide the necessary guidelinesto solve many corporate finance problems. To successfully complete this unit you will need the Unit Guide and the Workshop Program which are availablefor you to download from CloudDeakin website. You will also need the prescribed textbook. The printed bookor e-text can be purchased from the University bookshop. The textbook will also give you the access to iStudy,an interactive learning tool. There are a 2-hour lecture and a 1 hour workshop each week. The workshopcovers material from the previous weeks lecture. However, please note that workshops start in week 1. Thefirst workshop serves as an introduction of some important material from MAF101. In addition, you areencouraged to purchase a finance calculator (e.g., Sharp EL738 or Sharp EL-735S), which will be useful forthis subject as well as other finance subjects. There are three assessments in this Unit: online multiple choice test, group assignment and the finalexamination.It is important to note that Business Finance is taught on the assumption that students have an understandingof the basic concepts, principles and analytic techniques found in MAF101.If you need any assistance on any academic matter related to this unit, please do not hesitate to contact yourlecturer or the unit chair. You will find their contact details in the unit guide. Please note it is absolutely essential that you have the prescribed textbook and a financial calculator beforethe commencement of the trimester.We wish you all the best.MAF203 Teaching Team.

CONTACT DETAILS

Unit chair

S Deb (Trimester 1), D Doan (Trimester 2)

Unit chair details

Unit Chair Name Dr. Daisy Doan

School Department of Finance

Faculty Business and Law

Campus Melbourne Burwood Campus

Email [email protected]

Phone +61 (03) 92446563 +61 3 9244 6633

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Other staff

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Burwood TeachingStaff

Samson Ekanayake

Campus Melbourne Burwood Campus


Phone +61 3 92446563 +61 3 92446563

Geelong TeachingStaff

Stephen Williams

Campus Geelong Waterfront Campus


Phone +61 3 5227 2126 +61 3 5227 2126

Geelong TeachingStaff

Rebecca Ratcliffe

Campus Warrnambool Campus


Phone TBA

Administrative queries

Enquiries can be made via email to:

Faculty of Business and Law - student advisersTel 03 9244 6555Email [email protected]

IMPROVEMENTS IN RESPONSE TO STUDENT FEEDBACK

Towards the end of the teaching period you will be emailed a link to the Student Evaluation of Teaching andUnits (SETU) survey for this unit. I encourage you to complete this as the results are used to help assesscurriculum, teaching and assessment directions in this unit.The following aspects of the unit have been introduced or enhanced in response to feedback from studentswho have undertaken this unit in previous Trimesters:Videos, highlighting the important issues and concepts in each topic, are made available on CloudDeakin.

UNIT OVERVIEW

Unit code

MAF203

Unit title

Business Finance

Contact hours

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Campus: 1 x 2 hour class and 1 x 1 hour seminar per weekCloud (online): Learning experiences are via CloudDeakin

Study commitment

Students will on average spend 150 hours over the trimester undertaking the teaching, learning andassessment activities for this unit. This will include 3 face-to-face contact hours per week (1 x 2-hour lectureand 1 x 1-hour workshop) and online and other problem-based exercises.

Unit prerequisite(s)

MAF101

Unit corequisite(s)

Nil

Unit incompatible(s)

Nil

DESCRIPTION OF UNIT

The focus of the unit is the finance function of a typical firm. The finance manager's role in financial decisionsis emphasised. Topics include: valuation concepts; risk and rates of return; capital budgeting and projectevaluation; working capital management; capital structure; cost of capital; and dividend policy.

ACADEMIC CALENDAR

Trimester 2 teaching period begins Monday 13 July 2015Intra-trimester break Monday 10 August to Sunday 16 August 2015Teaching period ends Friday 2 October 2015Study period Monday 5 to Friday 9 October 2015Examinations begin Monday 12 October 2015Examinations end Friday 23 October 2015Inter-trimester break Monday 26 October to Friday 6 November 2015Results released Friday 6 November 2015

UNIT TIMELINES

UNIT PLANNER and LECTURE SCHEDULEThe following table lists the dates of lectures, topics and other activities in the unit week-by-week during thetrimester.It is a guide only and there may be variations in order to accommodate any special needs of the class, publicholidays or other circumstances.

Week Commencing Topic Special learning activitiesAssessment duedate

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1 13 July 1

Financial manager of thecompanyReading: chapter 1 of theprescribed textbook.

2 20 July 2Discounted cash flows andvaluationReading: chapters 5 and 6.

3 27 July 3Risk and returnReading: chapter 7.

4 3 August 4 &5

Topic 4: Bond valuation and thestructure of interest ratesReading: chapters 2, 5 and 8. Topic 5: Share valuationReading: chapter 9.

5 17 August 6Fundamentals of capitalbudgetingReading: Chapter 10.

6 24 August 7 & 8

Topic 7:Cash flows and capitalbudgetingReading: chapter 11.Topic 8: Project economics andcapital budgeting Reading:chapter 12.

CloudDeakin onlinetest covers topics 1to 6.The test opens at9.00 am Friday 28thAugust and closes at9pm Sunday 30thAugust.

7 31 August 9The cost of capitalReading: chapter 13.

8 7 September 10Working capital management Reading: chapter 14.

9 14 September 11 & 12

Topic 11: Capital financingReading: chapter 15.Topic 12: Capital structure policyReading: chapter 16.

Group AssignmentDue at 5pm on Friday, 18thSeptember.(To be submitted onCloudDeakin- No printor e-mail submission)

10 21 September 13Dividends and dividend policyReading: chapter 17.

11 28 September 14 Revision

UNIT LEARNING OUTCOMES

The Unit Learning Outcomes (ULOs) listed below describe what you are expected to have achieved oncompletion of this unit. Each ULO relates to one or more of the Deakin Graduate Learning Outcomes (GLOs)which describe the knowledge and capabilities you should acquire and be able to apply and demonstrate at thecompletion of your course (see below). Not all of the GLOs are developed and assessed in every unit.

ULO: At the completion of this unit studentscan:

The ULO relates to thefollowing DGLO/s:

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ULO: At the completion of this unit studentscan:

The ULO relates to thefollowing DGLO/s:

ULO1Comprehend conceptual foundation forfinancial decision-making in a typicalbusiness firm.

DGLO1: Discipline-specificknowledge and capabilities

ULO2Evaluate risk-return trade-off in firm'sfinancial decisions.

DGLO4: Critical thinking

ULO3

Apply relevant analytical techniques forvaluation of bond and share, short-term andlong-term investment and financing decisionsand working capital management.

DGLO4:Critical thinkingDGLO5: Problem solving

ULO4

Analyse implications of alternative methods ofcapital financing and of alternative capitalstructures to cost of capital and value of afirm.

DGLO1: Discipline-specificknowledge and capabilities.DGLO4: Critical thinking

ULO5Analyse theory and practice of dividendpolicy.

DGLO1: Discipline-specificknowledge and capabilities.DGLO4: Critical thinking

Deakin Graduate Learning Outcomes (GLOs) are systematically integrated into courses by contextualisingthem as Course Learning Outcomes (CLOs) which are then mapped to the units of study that make up thecourse. Up to six Unit Learning Outcomes (ULOs) are developed and assessed for each unit that describe whatstudents are expected to have achieved on successful completion of the unit. All ULOs should be assessed viasummative assessment. For more information about the development of CLOs and ULOs see the Guide toCourse Enhancementat: http://www.deakin.edu.au/learning/designing-assessing-and-evaluating-learning/enhancing-courses. GLO1 Discipline-specific knowledge and capabilities:

appropriate to the level of study related to adiscipline or profession

GLO5 Problem solving: creating solutions to authentic(real world and ill-defined) problems

GLO2 Communication: using oral, written andinterpersonal communication to inform,motivate and effect change

GLO6 Self-management: working and learningindependently, and taking responsibility forpersonal actions

GLO3 Digital literacy: using technologies to find,use and disseminate information

GLO7 Teamwork: working and learning with othersfrom different disciplines and backgrounds

GLO4 Critical thinking: evaluating information usingcritical and analytical thinking and judgment

GLO8 Global citizenship: engaging ethically andproductively in the professional context andwith diverse communities and cultures in aglobal context

UNIT LEARNING ENVIRONMENT

Learning approach and activitiesThis unit comprises 2 hours of lectures and a 1-hour workshop per week. Teaching methods will be based oncollaborative learning. All students have access to communicate electronically with staff and fellow students.The text book is the first hand resource for this unit and provides extensive supporting materials. This iswhere most of the workshop questions are taken from. Extended use of online facilities including CloudDeakin will be applied for teaching and further discussions. Online teaching methods require Internet access andonline communication via CloudDeakin. All students are expected to participate in and contribute toclass-room/CloudDeakin-based discussions.CloudDeakinStudents should constantly refer to the MAF203 - Business Finance CloudDeakin venue to find specificinformation with regard to the Unit. The workshop program will be provided on CloudDeakin at the beginning

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of the trimester. This unit utilises CloudDeakin for communication, posting notices and for providing learningresources. CloudDeakin is an integral part of the unit and therefore students are expected to access the unit site frequently. Weekly lecture slides, video recordings giving an overview and highlighting the issuescovered in each topic, suggested answers to the workshop questions and other relevant material will be postedin CloudDeakin. Lectures will be audio streamed to all students through the iLecture facility (Echo) viaCloudDeakin.Students are highly recommended to read the relevant chapters in the Prescribed Text Book andshort videos available on CloudDeakin before attending the lectures and workshops.Students are encouraged to use the iStudy which comes wit the textbook and the Quizzes providedon CloudDeakin This Unit moves very quickly through a large body of material and knowledge in a progressive manner (i.e., ina sequential, cumulative manner). Therefore, it is essential to complete the assigned readings, watch thevideos and prepare for workshop questions on a weekly basis. Students who do not spend at least 9 hours(including 3 contact hours) per week on this unit starting from week 1, may find it difficult to successfullycomplete this Unit.

UNIT ASSESSMENT

Overview

Assessment 1 Cloud (Online) Test 10%Assessment 2 (group of 3-4 students) Assignment 3000 words 30%Examination 2 hours 60%Hurdle requirement achieve at least 50% of the marks available on the examination

Hurdle requirements

Brief summary of hurdle requirement Rationale

50% of the marks allocated for the finalexamination

The hurdle requirement in the unit will ensure students meetthe learning objectives and are assessed on their own merit inthe final examination.

Summative assessment

This information must be consistent with the Handbook entry.

- Summative assessment task 1

Summative Assessment Task 1

Brief description of assessment taskThe online test is of 1 hour duration. The test opens at 9.00 am Friday 28th August and closes at9pm Sunday 30th August.

Detail of student output The test covers topics 1 to 6. This is an open-book test

Weight (% total mark for unit)

10%

Unit Learning Outcome(s) assessed ULOs: 1, 2 and 3.

Deakin Graduate Learning Outcome(s)assessed

DGLO1 - Discipline specific knowledge and capabilitiesDGL05- Problem Solving

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What early feedback will student get,how and when?

After the test results are released, students will be providedwith sample answers

Due date and form of submission Online submission via CloudDeakin between 9.00 am Friday28th August and 9pm Sunday 30th August.


Summative assessment Task 2

Brief description of assessment taskAssignment (Group of 3 to 4 students)Word limit: 3000 words

Detail of student output A well presented report of maximum 3000 words


30%

Unit Learning Outcome(s) assessed ULO1, ULO2, and ULO3

Deakin Graduate LearningOutcome(s) (GLO) assessed

GLO1: Discipline-specific knowledge and capabilities. GLO 4: Critical thinking-ability of the students is tested with thisassessment task.GLO7:Teamwork: the assessment component examines thestudent's ability to work in a team from different disciplines andbackgrounds.GLO8: Global citizenship: engage ethically and professionally incompleting the assessment task.

What early feedback will student get,how and when?

Students will be given timely feedback through a Rubric system.Detail descriptions on the feedback will be placed on CloudDeakin.

Due date and form of submission

Group assignment due at 5pm on Friday, 18th September (Melbourne Time). Assignments should be uploaded on CloudDeakin. No e-mail orpostal submission is accepted.


Summative assessment task 3Final Exam

Brief description of assessmenttask

The final examination is a closed book. Students are allowed to bringalong a financial calculator in the examination hall. Further detailson the nature and content coverage of the exam will be provided indue course on CloudDeakin.

Detail of student output This is a 2-hour examination


60%

Unit Learning Outcome(s)assessed

ULO1, ULO2, ULO3, ULO4 and ULO5.

Deakin Graduate LearningOutcome(s) (GLO) assessed

DGLO1 - Discipline specific knowledge and capabilitiesDGLO4 - Critical ThinkingDGL05 - Problem Solving

What early feedback will studentget, how and when?

The results of the final examination will be released as per Deakinuniversity result release schedule.

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Due date and form of submissionStudents are required to check the Trimester 2, 2015 examinationtime table to find out the final examination date of this unit.

Note

Full details of assessment tasks will normally be published in CloudDeakin by the week before the beginning oftrimester.

Assignment submission

You must keep a backup copy of every assignment you submit, until the marked assignment hasbeen returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backupcopy.Any work you submit may be checked by electronic or other means for the purposes of detectingcollusion and/or plagiarism.When you are required to submit an assignment through CloudDeakin, you will receive an email toyour Deakin email address confirming that it has been submitted. You should check that you can seeyour assignment in the Submissions view of the Assignment folder after upload, and check for, andkeep, the email receipt for the submission

UNIT LEARNING RESOURCES

Essential learning resources

Fundamentals of Corporate Finance (Australian 2nd Edition) by Parrino, Kidwell, Au Yong, Demsey,Morkel-Kingsbury, Ekanayake, Kofoed and Murray. Published in 2014 by John Wiley & SonsISBN 9781118378076

LEARNING RESOURCESPrescribed textbook(s) and other resources which you must acquire or to which you must haveaccessFundamentals of Corporate Finance (Australian 2nd Edition) by Parrino, Kidwell, Au Yong, Demsey,Morkel-Kingsbury, Ekanayake, Kofoed and Murray. Published in 2014 by John Wiley & Sons ISBN 9781118378076You may acquire either the printed (hard copy) or the e-text version of the textbook via DUSABookshop. The e-text can also be downloaded from www.wiley.com (Please make sure you downloadthe Australian 2nd Edition). The e-text is much cheaper than the printed textbook.You will also get access to the iStudy package (version 2) when you buy the textbook. Theinteractive iStudy contains a range of modules, problems, and videos to enhance studentunderstanding of key concepts.DUSA Bookshop:

ph 1800 686 681 1800 686 681 FREE (freecall) email to [email protected] or order online from the DUSA Bookshop web site at http://www.dusabookshop.com.auFinancial Calculator:We strongly encourage you to use a financial calculator in this unit. The textbook and lecturedemonstrations of relevant financial calculations will be based on Sharp EL 735S. Using a financialcalculator may save your time when doing calculations in the Test and the Final Examination.Learning resources provided by the University

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11 June 2015 Page 10 of 10

The learning resources listed in the table below are provided to you online via CloudDeakin.Resource DescriptionWeekly lecture recordings Echo recordingsWorkshop program and suggestedsolutions

Suggested solutions will be uploaded only after the completion of therelevant workshop session.

Introductory videosConcept Videos

Video recordings highlighting the important issues and areas in eachtopicVideo recordings explaining some of the important concepts of the Unit

Selected Material Any other current and relevant videos/articles (or links to such material)which will enhance students broader understanding of the topics.

Further essential resources which you must acquire or to which you must have accessYou will require online access. University specifications for online communication and computer standardsare listed in the University Handbooks.

Recommended learning resources

The Deakin Software Library provides students with access to software that you may need or find useful foryour study at Deakin.The Deakin Learning ToolKit is a CD-Rom containing a number of resources such as:

Web browsers and other softwarel

information about the Libraryl

Other Resources Read Financial news papers available in the Library, e.g., The Financial ReviewJournals

Financial Analysts Journall

Business Review Weeklyl

Personal Investmentl

Australian Financial Reviewl

Internet sites

Aust Financial Markets Association: www.afma.com.aul

Australian Stock Exchange: www.asx.com.aul

AFR Trading Room: www.tradingroom.com.aul

Security Brokers www.comsec.com.aul

CNN Financial news www.money.cnn.coml

Finance executives website: www3.cfo.comlDR

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