CO FINS1613 Semester 2
CO FINS1613 Semester 2
CO FINS1613 Semester 2
Course Outline
1. Course Details
Summary of Course
The course is worth 6 units of credit. There are 3 contact hours per week. This is an introductory
corporate finance course that looks at the essential aspects of financial decision-making in firms. The
course revolves around analysing (i) how businesses decide which projects to pursue and (ii) how
businesses raise capital to fund projects and distribute profits to owners.
The course begins by examining the different ways companies can be structured and the types of
corporate ownership that exist. Next, the principles of financial mathematics are introduced. Students
develop a financial mathematics toolkit that is useful in later courses, learning how to value the types of
financing available to a firm (primarily equity and debt capital). Specific attention is placed on the
relationships among value, risk, and time.
The course then examines how financial managers should decide which projects to pursue. Net present
value is introduced as a tool to help managers make decisions, and its strength over other decision
methods is emphasised. Then, students learn how to determine the financial cash flows generated by a
project. This discussion emphasises the importance of cash flows to firm value and the difference
between cash flows and accounting measures of firm performance.
The course then shifts to an examination of firms from the perspective of financial markets. Students
learn how financial markets determine the overall cost of capital for a firm, using portfolio theory to
examine the relationship between expected risk and returns in financial investments. Dividend payouts
and the choices between debt and equity financing are also covered.
The presentation of topics ensures that students recognize the relationship between firms and financial
markets. The course illustrates (i) how a firm’s selection of projects affects the cashflows it distributes to
investors and (ii) how the cashflows received by investors influence their valuation of the firm and feed
back to the firm’s project selection decision.
The course develops distinct conceptual frameworks and specialised tools for solving real-world financial
problems. Illustrations from real-life corporate practices highlight the importance and relevance of
financial management to the realisation of personal and corporate financial objectives. Examples include
project valuation and selection, personal financial planning, funds management, capital raisings, portfolio
selection of financial securities, private equity, public floats, and the pricing of assets in the stock market.
CLOs also contribute to your achievement of the Program Learning Outcomes (PLOs), which are
developed across the duration of a program for all coursework students in the Business School. More
information on PLOs is available under Policies and Support . PLOs are, in turn, directly linked to UNSW
graduate capabilities and the aspiration to develop “globally focussed graduates who are rigorous
scholars, capable of leadership and professional practice in an international community”.
The following table shows how the CLOs for this course relate to the overall PLOs and indicates where
each CLO and PLO is assessed:
Lectures develop both theoretical and practical knowledge of course topics, with an emphasis placed on
explaining fundamental concepts. Example problems are used to ensure students can apply their
understanding. When possible, we will seek to incorporate current events and topical research.
Each tutorial will require solutions to assigned problems consisting of questions related to the previous
week’s lecture topic. The homework helps ensure students learn key concepts and aides the tutor in
identifying areas where students require more direct instruction. Additional ungraded questions may be
used to illustrate complex application of course materials. Any additional questions will be distributed
through the Tutorial section of the course website.
Students will be receive continuous feedback on their progress throughout the semester through the early
assessment quiz, tutorial sessions, and the midterm exam. In addition, students will be graded on both
individual participation during the tutorials, as well as on their performance on the final exam.
Students are strongly encouraged to devote regular study time to this course. In addition to reviewing
lecture and tutorial materials and set readings, students may use the Peer Assisted Support Scheme
(PASS).
4. Assessment
Formal Requirements
In order to pass this course, you must:
achieve a composite mark of at least 50 out of 100;
achieve a satisfactory result on any essential assessment components; and
meet any additional requirements described in the Assessment Summary section.
Assessment Summary
As a student at UNSW you are expected to display academic integrity in your work and interactions.
Where a student breaches the UNSW Student Code with respect to academic integrity, the University may
take disciplinary action under the Student Misconduct Procedure.
To assist you in understanding what academic integrity means, and how to ensure that you do comply
with the UNSW Student Code, it is strongly recommended that you complete the Working with Academic
Integrity module before submitting your first assessment task. It is a free, online self-paced Moodle
module that should take about one hour to complete.
Assessment Summary
You should complete the Working with Academic Integrity module before submitting any written
assessment by the due date. Non-compliance with the UNSW Student Code may result in disciplinary
action.
Tutorial Component
You must enroll in a tutorial session and attend the session in which you are enrolled. MyUNSW will be
available until the end of the first week of lectures to enable changes, additions, and deletions. After the
first week, changes will ONLY be made for documented University conflicts, and approval is needed from
the lecturer-in-charge.
Your tutorial grade is based on your participation and contribution. Tutorials are designed to complement
the lecture material and involve small group discussions. Active participation is STRONGLY encouraged.
Tutorials help students (i) extend their understanding of finance principles and (ii) develop problem
solving techniques.
Tutorial Participation:
You are required to attend at least 80% of the tutorials. If you must miss a tutorial, please email your
tutor. No credit will be given for participation at tutorials other than that in which you are enrolled.
Details: The early assessment examination is a 30 minute examination (no reading time) covering the
earlier topics of the course. It consists of questions and problems in a multiple-choice format. The main
purpose of this exam is to ensure an early assessment/feedback in this course prior to the August 31
Census Date.
Details: The midterm examination is a 2.0-hour closed book examination (no reading time) covering the
1st ½ of the semester (textbook readings, lecture notes and other assigned readings). It consists of
questions and problems in a multiple-choice format.
Date: The final exam is centrally scheduled by the university to occur during UNSW’s Final Exam period,
which is from 2 to 20 Nov. UNSW policy expects you to be available during this entire period. The date of
the final exam is determined by the university during the semester.
Details: The final examination is a 2.0-hour closed book examination (no reading time) covering the 2nd ½
of the semester (textbook readings, lecture notes and other assigned readings). It consists of questions
and problems in a multiple-choice format.
Assessment Feedback
Feedback on student performance from formative and summative assessment tasks will be provided to
Late Submission
For information on Special Consideration please refer to the course Policies and Support .
The School of Banking and Finance supports the concept to leave the course lecturer-in-charge
to stipulate a penalty of 0 to 10% of the percentage weight of the assessment component or part
thereof per day. Details of such penalties will be available on the course Moodle page.
Applications for extension are restricted to cases of serious illness, bereavement or
misadventure and students must provide documentary evidence. Decisions on such
applications will be based on policies that are consistent with the policies adopted by UNSW
Business School for such cases.
Quality Assurance
The Business School is actively monitoring student learning and quality of the student experience in all its
programs. A random selection of completed assessment tasks may be used for quality assurance, such
as to determine the extent to which program learning goals are being achieved. The information is
required for accreditation purposes, and aggregated findings will be used to inform changes aimed at
improving the quality of Business School programs. All material used for such processes will be treated
as confidential.
5. Course Resources
Essentials of Corporate Finance (4rd Australian and New Zealand edition), by Stephen A. Ross, Rowan
Traylor, Gerhard Van de Vender, Ron Bird, Randolph W. Westerfield and Bradford D. Jordan, McGraw Hill
Irwin, 2017. ISBN #: 9781743760956. The textbook can be purchased from the UNSW bookshop.
Alternatively, students can purchase the eBook version of the textbook.
Regulators
Australian Securities & Investments Commission www.asic.gov.au
U.S. Securities Exchange Commission www.sec.gov
Securities Exchanges
Australian Securities Exchange www.asx.com.au
New York Stock Exchange www.nyse.com
Chicago Board of Trade www.cbot.com
Chicago Mercantile Exchange www.cme.com
General Finance Resources:
7. Course Schedule
Week 1: 23 July
Topic
Assessment/Other
Ch. 1
Week 2: 30 July
Topic
Financial Mathematics
Assessment/Other
Ch. 4, 5
Week 3: 6 August
Topic
Assessment/Other
Ch. 6
Week 4: 13 August
Topic
Assessment/Other
Week 5: 20 August
Topic
Assessment/Other
Ch 8
Week 6: 27 August
Topic
Assessment/Other
Ch. 2, 9
Week 7: 3 September
Topic
Assessment/Other
Ch. 10
Week 8: 10 September
Topic
Assessment/Other
Ch. 11
Week 9: 17 September
Topic
Assessment/Other
Ch. 12
Topic
Capital Structure
Assessment/Other
Ch. 13
Topic
Dividend Policy
Assessment/Other
Ch. 14
Topic
Raising Capital
Assessment/Other
Ch. 15
8. Policies
Information about UNSW Business School protocols, University policies, student responsibilities and
education quality and support.
Program Learning Outcomes
PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each
Business School program. They articulate what you should know and be able to do upon successful
completion of your degree.
Upon graduation, you should have a high level of specialised business knowledge and capacity for
responsible business thinking, underpinned by ethical professional practice. You should be able to
harness, manage and communicate business information effectively and work collaboratively with
others. You should be an experienced problem-solver and critical thinker, with a global perspective,
cultural competence and the potential for innovative leadership.
All UNSW programs and courses are designed to assess the attainment of program and/or course level
learning outcomes, as required by the UNSW Assessment Design Procedure . It is important that you
become familiar with the Business School PLOs, as they constitute the framework which informs and
shapes the components and assessments of the courses within your program of study.
Students will make informed and effective selection and application of knowledge in a discipline or
profession, in the contexts of local and global business.
Students will define and address business problems, and propose effective evidence-based solutions,
through the application of rigorous analysis and critical thinking.
Students will harness, manage and communicate business information effectively using multiple forms
of communication across different channels.
PLO 4: Teamwork
Students will interact and collaborate effectively with others to achieve a common business purpose or
fulfil a common business project, and reflect critically on the process and the outcomes.
Students will develop and be committed to responsible business thinking and approaches, which are
underpinned by ethical professional practice and sustainability considerations.
Students will be aware of business systems in the wider world and actively committed to recognise and
respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact,
communicate and work effectively in diverse environments.
Students will develop the capacity to take initiative, encourage forward thinking and bring about
innovation, while effectively influencing others to achieve desired results.
These PLOs relate to undergraduate and postgraduate coursework programs. Separate PLOs for
honours and postgraduate research programs are included under 'Related Documents'.
Business School course outlines provide detailed information for students on how the course learning
outcomes, learning activities, and assessment/s contribute to the development of Program Learning
Outcomes.
Global citizens who are culturally adept and PLO 1: Business knowledge
capable of respecting diversity and acting in a PLO 2: Problem solving
socially just and responsible way. PLO 3: Business communication
PLO 4: Teamwork
PLO 5: Responsible business practice
PLO 6: Global and cultural competence
While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also
provide you with a great deal of choice and flexibility. The Business School strongly advises you to
choose a range of courses that assist your development against the seven PLOs and four graduate
capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio
as evidence in employment applications as well as a reference for work or further study. For support
The definition of academic misconduct is broad. It covers practices such as cheating, copying and
using another person’s work without appropriate acknowledgement. Incidents of academic misconduct
may have serious consequences for students.
Plagiarism
UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding
plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your
own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of
plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct
Registers.
Below are examples of plagiarism including self-plagiarism: Copying: Using the same or very
similar words to the original text or idea without acknowledging the source or using quotation
marks. This includes copying materials, ideas or concepts from a book, article, report or other
written document, presentation, composition, artwork, design, drawing, circuitry, computer
program or software, website, internet, other electronic resource, or another person's
assignment, without appropriate acknowledgement of authorship.
Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original
structure and/or progression of ideas of the original, and information without acknowledgement. This
also applies in presentations where someone paraphrases another’s ideas or words without credit and
to piecing together quotes and paraphrases into a new whole, without appropriate referencing.
Collusion: Presenting work as independent work when it has been produced in whole or part in
collusion with other people. Collusion includes:
Students providing their work to another student before the due date, or for the purpose of them
plagiarising at any time
Paying another person to perform an academic task and passing it off as your own
Stealing or acquiring another person’s academic work and copying it
Offering to complete another person’s work or seeking payment for completing academic work
Collusion should not be confused with academic collaboration (i.e., shared contribution towards a
group task).
Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary'
source from which knowledge of them has been obtained.
Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work
and presents it as new findings without referencing the earlier work, either in its entirety or partially.
Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research
findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a
Cheating
The University also regards cheating as a form of academic misconduct. Cheating is knowingly
submitting the work of others as their own and includes contract cheating (work produced by an
external agent or third party that is submitted under the pretences of being a student’s original piece of
work). Cheating is not acceptable at UNSW.
If you need to revise or clarify any terms associated with academic integrity you should explore the
'Working with Academic Integrity' self-paced lessons available at: https://student.unsw.edu.au/aim .
For UNSW policies, penalties, and information to help you avoid plagiarism see: https://
student.unsw.edu.au/plagiarism as well as the guidelines in the online ELISE tutorials for all new UNSW
students: http://subjectguides.library.unsw.edu.au/elise . For information on student conduct see:
https://student.unsw.edu.au/conduct .
For information on how to acknowledge your sources and reference correctly, see: https://
student.unsw.edu.au/referencing . If you are unsure what referencing style to use in this course, you
should ask the lecturer in charge.
Information and policies on these topics can be found on the 'Managing your Program' website .
Workload
It is expected that you will spend at least nine to ten hours per week studying for a course except for
Summer Term courses which have a minimum weekly workload of eighteen to twenty hours . This time
should be made up of reading, research, working on exercises and problems, online activities and
attending classes. In periods where you need to complete assignments or prepare for examinations, the
workload may be greater. Over-commitment has been a cause of failure for many students. You should
take the required workload into account when planning how to balance study with employment and
other activities.
We strongly encourage you to connect with your Moodle course websites in the first week of semester .
Local and international research indicates that students who engage early and often with their course
website are more likely to pass their course.
Attendance
Your regular and punctual attendance at lectures and seminars or in online learning activities is
expected in this course. The Business School reserves the right to refuse final assessment to those
students who attend less than 80% of scheduled classes where attendance and participation is required
as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).
Keeping Informed
You should take note of all announcements made in lectures, tutorials or on the course web site. From
time to time, the University will send important announcements to your university e-mail address
without providing you with a paper copy. You will be deemed to have received this information. It is also
your responsibility to keep the University informed of all changes to your contact details.
Special Consideration
You must submit all assignments and attend all examinations scheduled for your course. You can apply
for special consideration when illness or other circumstances beyond your control, interfere with your
performance in a specific assessment task or tasks. Special Consideration is primarily intended to
provide you with an extra opportunity to demonstrate the level of performance of which you are
capable.
General information on special consideration for undergraduate and postgraduate courses can be
found in the Assessment Implementation Procedure and the Current Students page .
The Supplementary Exam Protocol for Business School students is available at: http://
www.business.unsw.edu.au/suppexamprotocol
For special consideration for assessments other than the final exam refer to the ‘Assessment Section’
in your course outline .
Given individual schools within the Faculty may set up a local process for viewing final exam scripts, it
is important that you check with your School whether they have any additional information on this
process. Please note that this information might also be included in your course outline.
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