UnitLevel 2Undergraduate

BFF2140 Corporate finance 1

Faculty of Business and Economics

BFF2140 Corporate finance 1 is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2021 in Semester 1 and Semester 2 at Caulfield and City (Melbourne). It needs ECB1101, ECF1100, ECW1101 or ECC1000 and unlocks 19 units, leading on to 27 units in all.

Credit points: 6
Offered in 2021: Semester 1, Semester 2; Caulfield, City (Melbourne)
Assessment: Exam 50%; and 1 other task
Workload: 144 hours; per semester

This is the 2021 handbook entry. See the 2027 entry.

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Requisites

Before BFF2140

Prohibitions

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

One of

Prerequisites

Pass these before you enrol.

One of

After BFF2140

19 units list BFF2140 as a prerequisite or corequisite.

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Enrolment rules

Trimester A, Trimester B, and Trimester C City location offerings for this unit are only available for Bachelor of International Business and associated double degree students.

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 2021

Teaching period	Campus	Mode
First semester	Caulfield	On campus
Second semester	Caulfield	On campus
Trimester A	City (Melbourne)	On campus
Trimester B	City (Melbourne)	On campus
Trimester C	City (Melbourne)	On campus

Assessment

Within semester assessment
50%
ExaminationThreshold hurdle
50%

Learning outcomes

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

1
evaluate investment options and value of equity and debt instruments
2
explain portfolio theory and show how the theory can be extended to price risky assets
3
estimate the appropriate cost of capital for investment appraisal purposes
4
analyse issues determining capital structure and dividend policy
5
apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with corporate finance, and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF2140.

Workload and teaching

Tutorials12 hours
Tutorials20 hours
Lectures24 hours
Workshops30 hours
Workshops33 hours
Teaching approachActive learning
Teaching approachPeer assisted 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. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

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.

Note that while a financial calculator is no longer required in examinations, the material will still follow the use of HP10bII+.

Recommended resources

City campus:
Berk, J., DeMarzo, P., Harford, J., Ford, G., Mollica, V. and Finch, N. (2017). Fundamentals of Corporate Finance (3rd edition) Pearson Australia, Frenchs Forest, NSW.

Technology resources

The only Faculty approved calculators permitted in tests and examinations for all Australian campuses and locations is the HP10bII+ or Casio FX82 (any suffix).

Where it fits

BFF2140 is part of 5 areas of study in the 2021 handbook.

Contacts

Unit Coordinators: Dr Nafisa Ovi
Chief Examiners: Professor Robert Brooks; Dr Joshua Shemesh

Common questions

What are the prerequisites for BFF2140?

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

What can I take after BFF2140?

BFF2140 is a prerequisite or corequisite for 19 units, including ACX3150, BFB3121, BFC2751, BFC3140, BFC3170 and BFC3240. Those lead on to 27 units in all.

When is BFF2140 offered?

In 2021, BFF2140 runs in Semester 1 and Semester 2 at Caulfield and City (Melbourne).

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 1 other task.

Which majors and minors include BFF2140?

BFF2140 is part of Banking and finance; Financial econometrics; and International business.

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: 202020212022 2023 2024 2025 2026 2027