FINAN101-22VB (VTN)

Introduction to Finance

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Lecturer(s)

Administrator(s)

: denise.martin@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

: trang.phan@waikato.ac.nz
: xuan.ngo@waikato.ac.nz

Student Representative(s)

Lab Technician(s)

Librarian(s)

: yilan.chen@waikato.ac.nz

You can contact staff by:

  • Calling +64 7 838 4466 select option 1, then enter the extension.
  • Extensions starting with 4, 5, 9 or 3 can also be direct dialled:
    • For extensions starting with 4: dial +64 7 838 extension.
    • For extensions starting with 5: dial +64 7 858 extension.
    • For extensions starting with 9: dial +64 7 837 extension.
    • For extensions starting with 3: dial +64 7 2620 + the last 3 digits of the extension e.g. 3123 = +64 7 262 0123.
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Paper Description

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This paper introduces the basic concepts of finance. Return and risk are the two key parameters that underpin all financial decisions. The roles played by financial institutions, markets, various types of financial securities, the needs of individuals and corporations, and how the financial decisions are made are explored in this paper. Finance decisions permeate all aspects of business decisions and provide the dollar rationale for choices and evaluation of outcomes. In addition, this paper introduces you to the four aspects of finance i.e., financial institutions, financial tools, investments, and corporate finance.

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Paper Structure

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Lectures

- Includes questioning students in a way that helps them evaluate their own thought processes by probing the thinking behind their statements and questions. Also includes asking students different types of questions: knowledge questions, comprehension questions, analysis questions, synthesis questions, evaluation questions.

- Students use knowledge, concepts, and skills relevant to a course to solve realistic business problems.

- Students work together in teams, collaborating to complete a problem or project.

- Provide a discussion of main concepts and issues relating to specific topics. Practical examples from the financial media are often discussed within the framework of topics covered. It is important to have pre-read the set reading for the topic.

- Accomplishment of tasks needed by the community combined with intentional learning goals, conscious reflection, and critical analysis.

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Learning Outcomes

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Students who successfully complete the paper should be able to:

  • Explain the opportunities and constraints facing business managers and investors and how business managers and investors participate in capital markets. [LO1]
    Linked to the following assessments:
  • Understand the Time Line of Money and Discounted Cash Flow. [LO2]
    Linked to the following assessments:
  • Analyse investor decision-making pertaining to asset valuation (bond and share) and determining trading strategies. [LO3]
    Linked to the following assessments:
  • Understand capital budgeting, capital structure and working capital management for financial decisions in financial management. [LO4]
    Linked to the following assessments:
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Assessment

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Assessment components are listed below.
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Assessment Components

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The internal assessment/exam ratio (as stated in the University Calendar) is 50:50. There is no final exam. The final exam makes up 50% of the overall mark.

The internal assessment/exam ratio (as stated in the University Calendar) is 50:50 or 0:0, whichever is more favourable for the student. The final exam makes up either 50% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Quiz 1
15 Aug 2022
10:59 PM
5
  • Online: Submit through Moodle
2. Quiz 2
29 Aug 2022
10:59 PM
5
  • Online: Submit through Moodle
3. Midterm test
19 Sep 2022
2:00 PM
25
  • In Class: In Test
4. Quiz 3
4 Oct 2022
12:59 AM
5
  • Online: Submit through Moodle
5. Quiz 4
25 Oct 2022
12:59 AM
5
  • Online: Submit through Moodle
6. Final test
15 Nov 2022
12:59 AM
30
  • In Class: In Test
7. Group - Assignment
12 Sep 2022
No set time
25
  • Online: Submit through Moodle
Assessment Total:     100    
Failing to complete a compulsory assessment component of a paper will result in an IC grade
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Required and Recommended Readings

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Required Readings

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Textbook: Finance Essentials, 1st Edition (2018) by Kidwell, Brimble, Mazzola, Morkel-Kingsbury, James

Australian edition John Wiley & Sons Australia, Ltd 2018

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Recommended Readings

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Reading list,

https://rl.talis.com/3/waikato/lists/F9A1CB5C-DF10-6CA1-D47F-D6FFC12BC3B7.html?lang=en-US&login=1

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Online Support

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Lecture slides, tutorial resources, and related teaching materials will be available through Moodle.

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Workload

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The course has 36 (3 X 12) contact hours (lectures and tutorials). The rest of the 150 hours expected workload in this 15-point paper can be distributed as follows: 20 hours to complete the Assignment, 35 hours to prepare for and attend the Midterm Test, and 59 hours to prepare for and attend the Final Exam.

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Linkages to Other Papers

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There is a significant interrelationship between finance and non-finance areas. First, finance and accounting are related since accounting information is needed for financial decisions. Second, finance and economics are related because economic activity and policy affect financial 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 the 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 is related to finance.

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