FINAN305-23A (HAM)

Financial Management 2

15 Points

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Division of Management
School of Accounting, Finance and Economics

Staff

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Convenor(s)

Greg Hou

Greg Hou
9402
MSB.3.25
See Moodle
greg.hou@waikato.ac.nz

Lecturer(s)

Administrator(s)

: denise.martin@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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What this paper is about

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This paper is one step further of FINAN200. The objective of this paper is to develop an understanding of some advanced issues financial managers face. Towards the end of this paper students will be familiar with working capital management i.e., financial planning and short-term finance and decisions that involve financing those investments (financial leverage and capital structure policy, payout policy), while touching on related issues in short-term financial planning and management and topics in corporate finance and behavioral finance (such as international corporate finance, behavioral finance, and mergers and acquisitions).

This paper also examines how managers should make investment, financing, and dividend decisions that enhance stockholders’ investment value and why management often doesn’t make decisions that increase shareholder value.

The issues we consider are applicable to those planning to work in: Corporate Finance (CFO, Treasury, and Financial Analysis), Investment Banking, Private Equity, Venture Capital understanding financial decision-making and how to communicate in the language of finance is also useful for those planning to work in strategy, operations, marketing, and consulting.
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How this paper will be taught

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As mentioned earlier, this paper builds on FINAN200. It examines a firm's Dividend and Payout Policy, Short-Term Financial Management, and Cash Management. It also covers a few advanced topics like international corporate finance, behavioral finance, and mergers and acquisitions.

The main activities of this paper include:

1. On-campus and Zoom lectures

2. On-campus and Zoom tutorial activities

3. Online tests

4. Group assignment

5. Student consultation

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Required Readings

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There is no required textbook for this paper. But there is a textbook highly recommended and essential : Ross, Westfield, and Jordan (2022). Fundamentals of Corporate Finance, 13th Edition, McGraw-Hill Education.
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You will need to have

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Recommended Readings

For more information about the highly recommended textbook, optional textbook, papers as well as other useful resources, refer to the Waikato Reading List of this paper which is available in Moodle.

Other Resources

Refer to the Moodle for the detailed list of suggested readings.

Online Supports

All the available resources about this paper will be available in Moodle. The online resources may be updated where necessary.

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Learning Outcomes

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Students who successfully complete the course should be able to:

  • Optimise cash holdings, collection and disbursements
    (LO3)
    Linked to the following assessments:
    • Test 2 (2)
    • Test 3 (3)
  • Use interest rate theory and institutional knowledge to develop strategies for trading of foreign exchange using spot and/or forward rates
    (LO4)
    Linked to the following assessments:
    • Test 3 (3)
  • Evaluate dividend payout policies
    (LO1)
    Linked to the following assessments:
    • Test 1 (1)
  • Determine optimal capital structure for a firm having evaluate the effects of leverage on risk and return and other relevant factors
    (LO2)
    Linked to the following assessments:
    • Test 2 (2)
  • Evaluate mergers and acquisitions and methods to fund a merger or acquisition
    (LO6)
    Linked to the following assessments:
    • Group Assignment (4)
  • Identify biases, framing effects and heuristics relating to the effects of irrational behaviour on corporate decision-making processes
    (LO5)
    Linked to the following assessments:
    • Test 3 (3)
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Assessments

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How you will be assessed

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Internal Assessments are by the components as listed below. Note there is no examination for this paper.
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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
24 Mar 2023
6:00 PM
20
  • Online: Submit through Moodle
2. Test 2
27 Apr 2023
3:00 PM
20
  • Online: Submit through Moodle
3. Test 3
2 Jun 2023
2:00 PM
30
  • Online: Submit through Moodle
4. Group Assignment
11 Jun 2023
5:00 PM
30
  • 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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