UnitLevel 2Undergraduate

BFX2140 Corporate finance 1

Faculty of Business and Economics

BFX2140 Corporate finance 1 is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics. It isn't offered in 2021. It needs ECF1100, ECW1101, ECC1000 or ECB1101 and unlocks 16 units, leading on to 25 units in all.

Credit points
6
Offered in 2021
Other periods
Caulfield
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

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 periodCampusMode
October 12 week teaching periodCaulfieldOn campus

Assessment

  • Within semester assessment
    50%
  • ExaminationThreshold hurdle
    50%

Learning outcomes

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

  1. 1

    evaluate investment options and value of equity and debt instruments

  2. 2

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

  3. 3

    estimate the appropriate cost of capital for investment appraisal purposes

  4. 4

    analyse issues determining capital structure and dividend policy

  5. 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

  • Tutorials20 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.

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

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

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

BFX2140 is part of 11 areas of study in the 2021 handbook.

Contacts

Chief Examiners
Mr Simon Yap

Common questions

What are the prerequisites for BFX2140?

You need ECF1100, ECW1101, ECC1000 or ECB1101 before you enrol.

What can I take after BFX2140?

BFX2140 is a prerequisite or corequisite for 16 units, including ACX3150, BFB3121, BFC2751, BFC3140, BFC3170 and BFC3240. Those lead on to 25 units in all.

When is BFX2140 offered?

BFX2140 has no offerings listed in the 2021 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 1 other task.

Which majors and minors include BFX2140?

BFX2140 is part of Accounting; Actuarial studies; Banking and finance; Finance; and Finance and economics, and 2 other areas of study.

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
Not available
Handbook years
2021202220232024202520262027