UnitLevel 2Undergraduate

BFB2140 Business finance

Faculty of Business and Economics

BFB2140 Business finance is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2027 in Semester 1 at Peninsula. It needs ECB1101, ECC1000, ECF1100 or ECW1101 and unlocks 16 units, leading on to 23 units in all.

Credit points
6
Offered in 2027
Semester 1
Peninsula
Assessment
Exam 50%
and 2 other tasks
Workload
144 hours
per semester

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Requisites

Enrolment rules

To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 11 level.  You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study.  You should self-assess your maths competency prior to enrolling in this unit.

Equivalent units

The same content under another code. Only one of them counts.

Overview

The aim of the unit is to introduce you to the theory and application of why and how value enhancing corporate financial decisions are made and implemented. With the emphasis on publicly listed companies, topics covered include: the corporate objective of management; investment evaluation models; valuation of equity and debt instruments; sources and types of funding; issues in risk and return; portfolio theory; asset pricing models; issues in capital structure and dividend policy; and the efficiency of capital markets. The unit is designed to ensure that you gain the necessary skill set for making value-changing financial decisions to maximise firm value.

Offerings in 2027

Teaching periodCampusMode
First semesterPeninsulaOn campus

Assessment

  • Exercise
    35%
  • Demonstration
    15%
  • Examination
    50%

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Learning outcomes

When you finish this unit, you should be able to:

  1. 1

    apply different valuation techniques based on time value of money on equity and debt instruments

  2. 2

    evaluate investment decisions for domestic and international projects using tools based on the time value of money

  3. 3

    explain portfolio theory and show how the theory can be extended to price risky assets

  4. 4

    develop the skills to estimate the appropriate cost of capital for investment appraisal purposes

  5. 5

    evaluate firm capital structure and payout policy.

Workload and teaching

  • Tutorials24 hours
  • Seminars12 hours
  • Teaching approachActive learning

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities.

Learning resources

Technology resources

There may be an additional cost associated with purchasing a physical and/or virtual calculator. Specific details will be provided in the Learning Management System by commencement of Orientation week.

Where it fits

BFB2140 is part of 1 area of study in the 2027 handbook.

Contacts

Chief Examiners
Tony Nguyen

Common questions

What are the prerequisites for BFB2140?

You need ECB1101, ECC1000, ECF1100 or ECW1101 before you enrol. Enrolment rules also apply.

What can I take after BFB2140?

BFB2140 is a prerequisite or corequisite for 16 units, including BFC2751, BFC3140, BFC3170, BFC3240, BFC3241 and BFC3341. Those lead on to 23 units in all.

When is BFB2140 offered?

In 2027, BFB2140 runs in Semester 1 at Peninsula.

How much work is BFB2140?

The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.

Does BFB2140 have an exam?

Yes. The exam is worth 50% of the final mark, alongside 2 other tasks.

Which majors and minors include BFB2140?

BFB2140 is part of Finance and economics.

More details

Credit points
6
Level
2
Study level
Undergraduate
Faculty
Faculty of Business and Economics
Organisational unit
Department of Banking and Finance
Type
Coursework
EFTSL
0.125
Student contribution
SCA Band 4
Study abroad
Available