BFS2780 Corporate finance A
Faculty of Business and Economics
BFS2780 Corporate finance A 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 South Africa. It needs ACS1000 and unlocks 1 unit.
- Credit points
- 6
- Offered in 2021
- Semester 1, Semester 2
- South Africa
- Assessment
- Exam 60%
- and 3 other tasks
- Workload
- 144 hours
- per semester
This is the 2021 handbook entry. See the 2022 entry.
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Requisites
Before BFS2780
Prerequisites
Pass these before you enrol.
After BFS2780
1 unit list BFS2780 as a prerequisite or corequisite.
Overview
This unit introduces the principles of financial management, strategy and risk management. The unit addresses the following fundamental areas: Development, evaluation and management of strategy, risk management, introduction to corporate finance and financial management; an introduction to working with financial statements; the principles of time value of money and valuation of future cash flows; interest rates and bond valuations, share valuations, net present value and investment criteria; an introduction to capital budgeting principles and its relationship with the future cash flow valuation.
Offerings in 2021
| Teaching period | Campus | Mode |
|---|---|---|
| First semester - South Africa | South Africa | On campus |
| Second semester - South Africa | South Africa | On campus |
Assessment
- Within semester assessment15%
- Within semester assessment15%
- Objective tests and homework10%
- ExaminationThreshold hurdle60%
Learning outcomes
When you finish this unit, you should be able to:
- 1
explain the purpose of financial management and corporate finance
- 2
apply analysis techniques to financial information and interpret the results
- 3
explain and apply the principles of time value of money to rank investment projects and value stocks and bonds
- 4
explain and apply, at an introductory level, valuation techniques relating to equity instruments
- 5
explain and apply techniques in capital investment decisions
- 6
identify aspects broader than only financial aspects (such as environmental, social, economic and governance) in decision making
- 7
apply critical thinking, problem solving and presentation skills to activities dealing with corporate finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFS2780.
Workload and teaching
- Tutorials12 hours
- Lectures24 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.
This unit will be taught by making use of a two-hour lecture each week, plus a separate one-hour tutorial each week for 12 weeks. Students will be expected to prepare for classes and may be tested on their preparation either before the class commences (through Moodle tests and assignments) or during class time.
Lectures will cover significant points relating to the topics (please refer to the detailed unit schedule), and may be used to cover a number of set problems. It is not intended that the lectures will cover every aspect of the topic, but rather that the lectures will provide a framework of the important theoretical concepts and practical issues. It is against this background that students are expected to attend lectures and participate actively. Students should spend additional private study time on the references indicated in the unit guide or on the unit website. Lectures are not a substitute for reading or independent learning and reflection. In general, you are expected to spend two to three hours of self-directed study (as a minimum!) for each hour in class.
Tutorials will be used to solve set problems and to allow students to raise and discuss relevant issues and areas of concern. Attendance at tutorials and performance in written work are regarded as important and are strongly recommended. Tutorial and class registers will be kept. Active class participation will be taken into account when calculating the in-semester mark.
To ensure a high probability of successfully completing this unit, students need to approach the subject in a systematic way. This should involve at least the following:
- Reading the prescribed material prior to the lecturing session;
- Preparing solutions to the set problems well in advance;
- Attending lectures and tutorials, and actively participating in both;
- Reviewing material from other references/resources from time to time; and
- Attempting all the set problems (from tutorial classes and question banks to be made available on Moodle) prior to the semester tests and examinations.
Learning resources
Required resources
The textbook prescribed for this course is Financial Management, Correia et al, 8th edition (ISBN number 978-1-4851-0277-9). You are also most welcome to purchase the 9th edition of the same text book (ISBN number 978-1-4851-2957-8).
Technology resources
You may use any non-programmable financial calculator, but the recommended calculator is the HP10bII+ calculator.
Contacts
- Chief Examiners
- Mr Carel Snyman
- Ms Michelle Vermeulen
Common questions
What are the prerequisites for BFS2780?
You need ACS1000 before you enrol.
What can I take after BFS2780?
BFS2780 is a prerequisite or corequisite for 1 unit, including BFS3790.
When is BFS2780 offered?
In 2021, BFS2780 runs in Semester 1 and Semester 2 at South Africa.
How much work is BFS2780?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFS2780 have an exam?
Yes. The exam is worth 60% of the final mark, alongside 3 other tasks.