BFX2140 Corporate finance
Faculty of Business and Economics
BFX2140 Corporate finance is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics. It isn't offered in 2027. It needs ECB1101, ECC1000, ECF1100, ECW1101 or ECX2953 and unlocks 12 units, leading on to 21 units in all.
- Credit points
- 6
- Offered in 2027
- Not offered
- Assessment
- Exam 50%
- and 2 other tasks
- Workload
- 144 hours
- per semester
Reviews
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Requisites
Before BFX2140
Prerequisites
Pass these before you enrol.
Prohibitions
You can't enrol if you have passed any of these.
After BFX2140
12 units list BFX2140 as a prerequisite or corequisite.
- BFC2751Derivatives No reviews yet
- BFC3140Advanced corporate financeNo reviews yet
- BFC3170Financial intermediationNo reviews yet
- BFC3241InvestmentsNo reviews yet
- BFC3341Fixed income analysisNo reviews yet
- BFC3540Modelling in financeNo reviews yet
- BFF3121Investments and portfolio managementNo reviews yet
- BFF3140Advanced business financeNo reviews yet
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
The 2027 handbook lists no offerings for BFX2140.
Assessment
- Exercise35%
- Demonstration15%
- Examination50%
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
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
- Seminars8 hours
- Tutorials24 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
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.
Common questions
What are the prerequisites for BFX2140?
You need ECB1101, ECC1000, ECF1100, ECW1101 or ECX2953 before you enrol.
What can I take after BFX2140?
BFX2140 is a prerequisite or corequisite for 12 units, including BFC2751, BFC3140, BFC3170, BFC3241, BFC3341 and BFC3540. Those lead on to 21 units in all.
When is BFX2140 offered?
BFX2140 has no offerings listed in the 2027 handbook.
How much work is BFX2140?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFX2140 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 2 other tasks.