Corporate Finance

Unit code: BAO2001 | Study level: Undergraduate
Credit points
12
(Generally, 1 credit = 10 hours of classes and independent study.)
Location
City Campus
VU Sydney
Prerequisites
BAO1000 - Financial Literacy and Decision Making
Does not apply to students completing; BBLC Bachelor of Commerce (Applied Finance)/Bachelor of Laws,
(Or equivalent to be determined by unit coordinator)
Overview
Enquire

Overview

Develop the skills to make financial decisions with a view to maximising firm value, in the Corporate Finance unit.

Financial decisions made in the context of world financial markets often impact shareholder wealth. This unit will help you understand how you can positively influence the outcome of these decisions.

With an emphasis on digital technology, you will be introduced to:

  • time value of money
  • the application of valuation of debt and equity securities
  • risk and return to asset pricing.

You will investigate capital budgeting decision-making, focusing on:

  • the calculation of the cost of capital
  • capital structure decisions in imperfect markets and its impact on firm value
  • dividend policy decisions from a tax and information perspective.

Learning Outcomes

On successful completion of this unit, students will be able to:

  1. Systematically analyse the financial decision process and interpret information and data in relation to Australian and global financial markets;
  2. Investigate the theoretical and practical developments in corporate finance in a dynamic, global context;
  3. Individually and collaboratively compute and interpret corporate financial data and concepts and make financial decisions and recommendations based on the financial results;
  4. Apply techniques solving corporate finance problems incorporating the use of digital technologies where appropriate; and
  5. Investigate the impact of financing and dividend proposals that a firm may face and evaluate their impact on firm value.

Assessment

For Melbourne campuses

Assessment type: Test
|
Grade: 10%
In-class test: theory and practical - short answer and multiple choice
Assessment type: Report
|
Grade: 20%
Report on risk assessment and asset pricing (Group)
Assessment type: Case Study
|
Grade: 20%
Time value, debt and equity valuation (Group)
Assessment type: Test
|
Grade: 50%
In-class theory and practical questions

Financial calculators may be used in the final test.

Other locations

For students studying at Central University of Finance and Economics, Henan University, Liaoning University
Assessment type: Test
|
Grade: 10%
In-class test: theory and practical - short answer and multiple choice
Assessment type: Report
|
Grade: 20%
Report on risk assessment and asset pricing (Group)
Assessment type: Case Study
|
Grade: 20%
Debt and equity valuation (Group)
Assessment type: Examination
|
Grade: 50%
Final examination: Theory and practical questions
Financial calculators may be used in the final examination.

Required reading

Students will have access to required readings via VU Collaborate and are not required to purchase the listed textbook.

Finance essentials.
Kidwell, D.S., Brimble, M., Mazzola, P., Morkel-Kingsbury, N., & James, J. (2018).| John Wiley & Sons.

As part of a course

This unit is studied as part of the following course(s):

Bachelor of Accounting
BBAQ | Bachelor degree | Duration: 3 years
Bachelor of Laws (Honours)/Bachelor of Commerce (Applied Finance)
LHLC | Bachelor honours degree | Duration: 5 years

Refer to the course page for information on how to apply for the course. VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.

Search for units, majors & minors