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.
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
16 units list BFX2140 as a prerequisite or corequisite.
- ACX3150Financial analysis and valuationNo reviews yet
- BFB3121Investments and portfolio managementNo reviews yet
- BFC2751Derivatives 1No reviews yet
- BFC3140Corporate finance 2No reviews yet
- BFC3170Management of financial intermediariesNo reviews yet
- BFC3240International financeNo reviews yet
- BFC3241Equities and investment analysisNo reviews yet
- BFC3341Debt markets and fixed income securitiesNo reviews yet
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- BFC3540Modelling in financeNo reviews yet
- BFF3121Investments and portfolio managementNo reviews yet
- BFF3140Corporate finance 2No reviews yet
- BFF3231International financeNo reviews yet
- BFF3351Investment bankingNo reviews yet
- BFF3751Derivatives 1No reviews yet
- BFX3355Property investmentNo reviews yet
- BFX3871International study program in banking and 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 2021
| Teaching period | Campus | Mode |
|---|---|---|
| October 12 week teaching period | Caulfield | On campus |
Assessment
- Within semester assessment50%
- ExaminationThreshold hurdle50%
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
- 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.
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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.