FINAN506-20B (HAM)

Corporate Finance

15 Points

Edit Header Content
Division of Management
School of Accounting, Finance and Economics

Staff

Edit Staff Content

Convenor(s)

Geeta Duppati

Geeta Duppati
9255
MSB.2.29
See Moodle
geeta.duppati@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)

: clive.wilkinson@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.
Edit Staff Content

Paper Description

Edit Paper Description Content

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 the firm get the long-term financing to pay for the investment? How will the firm manage the everyday financial activities? The paper will also cover the effects of biases and heuristics on financial management decisions.

Edit Paper Description Content

Paper Structure

Edit Paper Structure Content

Activities
1 : Read teaching materials and other relevant resources
2: Complete assignments
3 : Participate in-Zoom discussions - the timings of these sessions will be decided following email discussions with the students.

Edit Paper Structure Content

Learning Outcomes

Edit Learning Outcomes Content

Students who successfully complete the paper should be able to:

  • Learning Outcome 1
    Discuss and explain how agency theory pervades decision making in corporate finance (LO1).
    Linked to the following assessments:
  • Learning Outcome 2
    Identify the difference between bonds and stocks. Gaining insights into the bond features. Explain and show how
    stock prices affect dividend growth (LO2).
    Linked to the following assessments:
  • Learning Outcome 3
      Conceptually understand, the Capital Budgeting Techniques and Analysing and Evaluating Projects (LO3).
    Linked to the following assessments:
  • Learning Outcome 4
    • Understand how to determine a firm’s cost of equity capital, cost of debt and overall cost of capital (LO4) and
    • Explain the effects of financial leverage on cash flows and the cost of equity (LO4)
    Linked to the following assessments:
  • Learning Outcome 5
    Will be able to illustrate the effect of leverage on risk and return and discuss optimal capital structure (LO5)
    Linked to the following assessments:
  • Learning Outcome 6
    Explain dividend policy and demonstrate the relationship between dividend policy and stock value and Short term Finance and Planning (LO6).
    Linked to the following assessments:
Edit Learning Outcomes Content
Edit Learning Outcomes Content

Assessment

Edit Assessments Content

The assessments are individually worked components.

It is very important to keep track of the hours suggested as necessary for the various components of this Paper, including assessments. The standard of competency expected to be demonstrated through each assessment is closely related to what an average student can achieve in the hours indicated.

In practical terms, this means that a short response is unlikely to indicate hours of research going into the preparation of an answer. Similarly, up-to-date media-based examples (real-world business examples) are essential to demonstrate an in-depth understanding of concepts and techniques.

Edit Additional Assessment Information Content

Assessment Components

Edit Assessments Content

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. Individual Assignment 1
7 Aug 2020
5:00 PM
20
  • Online: Submit through Moodle
2. Individual Assignment 2
11 Sep 2020
5:00 PM
25
  • Online: Submit through Moodle
3. Individual Assignment 3
2 Oct 2020
5:00 PM
25
  • Online: Submit through Moodle
4. Individual Assignment 4 (Project)
26 Oct 2020
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
Edit Assessments Content

Required and Recommended Readings

Edit Required Readings Content

Required Readings

Edit Required Readings Content

Textbook: Fundamentals of Corporate Finance by Ross, Westerfield, and Jordan. Standard 12th Edition

Edit Required Readings Content

Recommended Readings

Edit Recommended Readings Content
Edit Recommended Readings Content

Other Resources

Edit Other Resources Content
Links to useful online resources will be notified from time to time through Announcements.
Edit Other Resources Content

Online Support

Edit Online Support Content

PowerPoint presentations, Panopto recording of lectures, short Panopto briefings on useful issues and other useful resources will be available online and announced through Announcements.

Edit Online Support Content

Workload

Edit Workload Content

The course has:

1. 24 (2X12) contact hours (lectures and tutorials)

2. 36 (3X12) hours to read chapters assigned

3. 3 hours to work on zoom sessions

4. 4 hours to prepare for Individual Assignment 1

5. 5 hours to prepare for Individual Assignment 2

6. 5 hours to prepare for Individual Assignment 3

7. 8 hours to prepare for Individual Assignment 4

Edit Workload Content

Linkages to Other Papers

Edit Linkages Content

Prerequisite(s)

Acceptance into the Master of Applied Finance programme.

Corequisite(s)

Equivalent(s)

Restriction(s)

Edit Linkages Content