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  • BA301 - Introduction to Finance

BA301 - Introduction to Finance

Credit Points: 15

Prerequisite: BB108 Business Statistics

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a third-year Core Unit in the Bachelor of Business, major in Accounting. This foundation finance unit introduces students to the basic concepts of corporate finance. It examines the techniques that financial managers use in decision-making, particularly in the key areas of the capital budgeting decision (capital investment analysis) and the financing decision (how activities and projects will be funded). The unit links the mathematics of finance and discounted cash flows to finance theory, valuation and investment analysis.

The unit topics include:

  1. Introduction to finance
  2. Working capital management
  3. Time value of money and valuation of cash flows
  4. Risk and return, securities valuation
  5. Capital budgeting
  6. Operating leverage
  7. Cost of capital
  8. Capital structure and dividend policy

Learning Outcomes and Assessment Details

Learning Outcomes

At the completion of this unit students should be able to:

  1. Appreciate the role of corporate finance
  2. Understand the importance of the time value of money when evaluating economic decisions
  3. Communicate corporate finance information in a variety of business decision making contexts
  4. Acquire conceptual knowledge through theory and problem solving, and evaluate the effectiveness of various corporate finance practices
  5. Apply finance knowledge to real problems in business and in personal financial decision-making

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour

Assessment

Assessment Task
Learning Outcomes Assessed
Weighting
Contribution in classa-e*10%
Mid-Semester Testa,b,c*15%
Group assignment (written report)b,e*25%
Final Exam (3 hours)b-e*50%
Total 100%

*refer to learning outcomes above.

Textbook and Reference Materials

Textbook

Adam, C., Gunasingham, B., Graham, J., Smart, S., (2017). Introduction to Corporate Finance, 2nd edition.US: Cengage Learning


Reference Reading

  • Ross, S., Trayler, R., Bird, R., Westerfield, R., & Jordan, B., (2014). Essentials of Corporate Finance, 3rd edition. Australian Emphasis, North Ryde, NSW: McGraw-Hill.
  • Besley, S., & Brigham, E.F., (2015). Principles of Finance, 6th edition. US: Cengage Learning.
  • Berk, J., DeMarzo, P., Harford, J., Ford, G., Mollica, V. & Finch, N., (2014). Fundamentals of Corporate Finance, 2nd edition. Sydney: Pearson Education.
  • Pierson, G., Brown, R., Easton, S., Howard, P., & Pinder, S., (2011). Business Finance, 11th edition. Australia: McGraw-Hill.

Graduate Attributes

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicateIndependent and Lifelong LearningEthicsAnalytical and Problem Solving Cultural and Global AwarenessTeam workSpecialist knowledge of a field of study
       

Legend

Colour coding    

Extent covered

                               The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
 The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
 The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
 The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
 The standard  is not considered, there is no theory or practice or activities associated with this standard

 

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