Introduction to Finance
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This paper introduces the three core areas of finance -- financial management, investments, and capital markets and institutions. The paper also examines applications of corporate finance concepts to personal finance.
Provide quick access to the whys and hows of dealing with the questions in finance. Provide easy-to-understand information, including equations and examples that can be quickly applied to the problems of finance.
The PowerPoint slides are uploaded onto Moodle for students to download before the lecture. The slides with notes will also be uploaded to Moodle after each lecture. I hope the slides with notes may save student time in copying my notes, so they can concentrate on understanding the course materials during the lectures.
All students should attend one tutorial (two hours) per week.
The PowerPoint slides are uploaded onto Moodle for students to download before the tutorials. The slides with answers will also be uploaded to Moodle after each tutorial.
Mobile Phones and Cross Chats
As a courtesy to others, students are strongly urged not to disrupt lecture sessions by using mobile phones and cross chatting during these sessions. Students are advised to disable their mobile phones during lectures.
Students who successfully complete the course should be able to:
- Explain the opportunities and constraints facing business managers and investors and how business managers and investors participate in capital markets. [L1]
- Define the concepts of valuation, liquidity and risk-return relationships and employ these concepts to analyse business/investment/personal finance decisions [L2]
- Analyse investor decision-making pertaining to asset valuation and determining trading strategies. [L3]
- Define capital budgeting and employ the concept to analyse business/investment/personal finance decisions. [L4]
During the semester, we will run FOUR spot quizzes in lectures and/or tutorials. These quizzes will provide you feedback on how you are going, and give you the opportunity to practice multiple choice questions from the same test bank that we choose questions from for the test and final test.Each quiz will be just five minutes long, and consist of four (or five) multiple choice questions which may be on any topic covered up until the time of the quiz. Each spot quiz that you complete will be worth extra credit for the Test or Final Test (1 quiz = 2 extra marks; Two quizzes for Test/Final Test. Note: The maximum score of the test and Final Test is 100%). In order to earn the extra credit, you must be in class at the time when the quiz is undertaken (The time for the quiz is random and no opportunity to apply for the make-ups). The answer for the quiz will be uploaded to Moodle (also discussed in lectures or tutorials if time is allowed).Content/Foundational Skill
Both critical-thinking and problem-solving questions will be included in the assignments, test, and Final Test.
The critical-thinking questions (i.e., short essay questions) will be evaluated by Communication Skills, Professionalism and Innovation. There is an expectation that students demonstrate academic integrity when they attempt the assignments in this paper. Moreover, referencing academic research articles to answer the questions will be rewarded in term of marks (But referencing non-academic websites, such as Investopedia, will not have a reward), which could motivate students achieving effective academic reading. The critical-thinking questions also allow for the evaluation of effective academic reading by students as their answers will demonstrate their understanding of the concepts explored in the paper. And the short essay questions require students to demonstrate their business writing ability.
For the problem-solving questions (i.e., calculation questions), students are required to show all their workings. These questions require students to perform calculations on data and then to demonstrate their understandings of the numbers calculated, and thus equip students with numeracy skills/using data.
The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam.
|Percentage of overall mark
28 Jan 2019
4 Feb 2019
|3. Final Test
12 Feb 2019
Required and Recommended Readings
Textbook: Finance Essentials, 1st Edition (2018) by Kidwell, Brimble, Mazzola, Morkel-Kingsbury, James
Australian edition John Wiley & Sons Australia, Ltd 2018
Fundamentals of Corporate Finance 11ED, Ross et al.
Lecture slides, tutorial resources and related teaching materials will be available in Moodle.
The course has 20 (4 X 5) contact hours (lectures and tutorials). The rest of the 150 hours expected workload in this 15-point paper can be distributed as follows: 30 hours to complete the Assignment, 40 hours to prepare for and attend the Test and 60 hours to prepare for and attend the Final Test.
Linkages to Other Papers
There is a significant interrelationship between finance and non-finance areas. First, finance and accounting are related since accounting information is needed for finance decisions. Second, finance and economics are related because economic activity and policy affect finance decisions, and vice versa. Finance and management are related because the management decisions, such as setting salary, hiring new staff and paying bonuses must be coordinated with finance. Finance and information systems are related because finance decisions rely on information. Last but not least, there are the four p's of marketing, product, price, place and promotion. Clearly, the price and promotion, e.g., advisement are related to finance.