UnitLevel 2Undergraduate

BFF2140 Business finance

Faculty of Business and Economics

BFF2140 Business finance is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2027 in Semester 1 and Semester 2 at Caulfield. It needs ECB1101, ECC1000, ECF1100, ECW1101 or ECX2953 and unlocks 16 units, leading on to 23 units in all.

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

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Requisites

Before BFF2140

Prerequisites

Pass these before you enrol.

One of

Prohibitions

You can't enrol if you have passed any of these.

One of

After BFF2140

16 units list BFF2140 as a prerequisite or corequisite.

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Enrolment rules

To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 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 this 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 you gain the necessary skill set for making value-changing financial decisions to maximise firm value.

Offerings in 2027

Teaching period	Campus	Mode
First semester	Caulfield	Flexible
Second semester	Caulfield	Flexible

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
apply different valuation techniques based on time value of money on equity and debt instruments
2
evaluate investment decisions for domestic and international projects using tools based on the time value of money
3
explain portfolio theory and show how the theory can be extended to price risky assets
4
develop the skills to estimate the appropriate cost of capital for investment appraisal purposes
5
evaluate firm capital structure and payout policy.

Workload and teaching

Tutorials24 hours
Seminars12 hours
Teaching approachActive learning
Teaching approachProblem-based 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.

This unit includes problem-based learning approaches, where you engage in research, integrate theory and practice and apply knowledge and skills to develop viable solutions in response to a problem or set of problems.

Learning resources

Required resources

Berk, J., DeMarzo, P., Harford, J., Ford, G., Mollica, V. and Finch, N. (2018). Fundamentals of Corporate Finance (3rd edition) Pearson Australia, Frenchs Forest, NSW.

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

BFF2140 is part of 5 areas of study in the 2027 handbook.

Contacts

Chief Examiners: Dr Joshua Shemesh; Mr Simon Yap

Common questions

What are the prerequisites for BFF2140?

You need ECB1101, ECC1000, ECF1100, ECW1101 or ECX2953 before you enrol. Enrolment rules also apply.

What can I take after BFF2140?

BFF2140 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 BFF2140 offered?

In 2027, BFF2140 runs in Semester 1 and Semester 2 at Caulfield.

How much work is BFF2140?

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

Does BFF2140 have an exam?

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

Which majors and minors include BFF2140?

BFF2140 is part of Accounting; Banking and finance; Business analytics and statistics; and Financial econometrics.

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
Handbook years: 2020 2021 2022 2023 2024 2025 20262027