FINAN200-21A (TGA)

Financial Management 1

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Samir Harith

Samir Harith
7706
MSB.3.08
See Moodle
samir.harith@waikato.ac.nz

Lecturer(s)

Samir Harith

Samir Harith
7706
MSB.3.08
See Moodle
samir.harith@waikato.ac.nz

Administrator(s)

: uwt@waikato.ac.nz

Placement/WIL Coordinator(s)

Tutor(s)

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 covers capital budgeting, capital structure and working capital management. Three key important questions are answered in this course: What long-term investments should the firm take on? Where will we get the long-term financing to pay for the investment? How will we manage the everyday financial activities of the firm?

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Paper Structure

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Lectures

Provide quick access to the whys and how of dealing with the three most important questions in finance: Capital Budgeting, Capital Structure and Working Capital Management. Provide easy-to-understand information, including equations and examples that can be quickly applied to most problems of corporate finance.

Tutorials

Tutorials will consist of interactive sessions where students are taught how to use Excel to solve financial calculations.

Mobile Phones and Cross ChatsAs a courtesy to others, students are strongly urged not to disrupt lecture sessions by using the mobile phones and cross chatting during these sessions. Students are advised to disable their mobile phones during lectures.

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Learning Outcomes

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Students who successfully complete the paper should be able to:

  • Learning Outcome 1: Understand capital budgeting.

    Identify the difference between accounting income and cash flow. Realise how to determine a firm’s cash flows. Be aware of where to find the information to calculate cash flow.

    Linked to the following assessments:
  • Learning Outcome 2: Evaluate risk and return.

    Understand how to calculate risk and return and the relation between them. Develop the security market line with an intuitive approach that bypasses much of the usual portfolio theory. Realise the CAPM model and discuss beta estimation.

    Linked to the following assessments:
  • Learning Outcome 3: Determine cost of capital and long term financial policies.
    Understand how to determine a firm's cost of equity capital, cost of debt & overall cost of capital. Examine different ways in which firms actually raise capital.
    Linked to the following assessments:
  • Learning Outcome 4: Working Capital Management
    Understand the requirements of working capital and the sources of short-term finance for use in working capital.
    Linked to the following assessments:
  • Learning Outcome 5: Capital Structure
    Identify the different components of capital structure and the relationship between assets, liabilities and equity. Understand the difference between debt and equity finance.
    Linked to the following assessments:
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Assessment

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Assessment is by the components as listed below.

Please note that all assessment is internally assessed 100:0. There is no Final Exam for the paper

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Assessment Components

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The internal assessment/exam ratio (as stated in the University Calendar) is 100:0. There is no final exam. The final exam makes up 0% of the overall mark.

The internal assessment/exam ratio (as stated in the University Calendar) is 100:0 or 0:0, whichever is more favourable for the student. The final exam makes up either 0% or 0% of the overall mark.

Component DescriptionDue Date TimePercentage of overall markSubmission MethodCompulsory
1. Test 1
12 Apr 2021
No set time
10
  • Online: Submit through Moodle
2. Assignment 1
16 Apr 2021
5:00 PM
10
  • Online: Submit through Moodle
3. Moodle Discussion - 10 best of 11
5
  • Online: Moodle Forum Discussion
4. End of Term Debate
31 May 2021
5:00 PM
20
  • Other: Debate will be conducted in the Lecture Theatre
5. Online Quizzes
5
  • Online: Submit through Moodle
6. Practical Case Assignment
4 Jun 2021
5:00 PM
10
  • Online: Submit through Moodle
7. Final Test
40
✔
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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Corporate Finance, Stephen ROSS, Randolph WESTERFIELD, Bradford JORDAN, 12th Edition

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Online Support

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Lecture slides, tutorial resources and related teaching materials will be available in 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: 12 hrs to complete the Moodle discussions, 20 hours to complete the assignments, 24 hours to prepare for and attend the test and 58 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 finance decision. 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 bonus must be coordinated with finance. Finance and information system are related because finance decisions rely on information. Last but not least, there are four ps of marketing, product, price, place and promotion. Clearly, the price and promotion, e.g., advisement are related to finance.
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Prerequisite(s)

Prerequisite papers: FINA201 or FINAN101

Corequisite(s)

Equivalent(s)

Restriction(s)

Restricted papers: FINA311, FINA510

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