25742 Financial Management

Subject level: Postgraduate

Handbook description

This subject provides participants with an understanding of the tools and techniques used in financial decision making. It is concerned with the investment and financing decisions of the firm and provides a basis for subsequent integrative management subjects. It examines also the key areas of financial decision making such as risk and diversification, capital budgeting, cost of capital, short-term financing leasing and foreign exchange.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Understand the role of accounting and financial information in the financial decisions such as what assets should a company buy? Should the company raise finance through debt or equity?
2. Use analytical techniques to making informed financial management decisions
3. Understand some of the theoretical and practical difficulties of the analytical techniques used in the financial decision making process

Contribution to graduate profile

This subject contributes to the degree by exposing students to the core principles of financial management. This is important since financial mismanagement is a leading reason for business failure. An understanding of financial management principles, is an essential ingredient in the development of a broad appreciation of business practices sought in a Masters program.

Teaching and learning strategies

The subject will be taught using a combination of lectures and workshops. These classes will be supplemented with both printed and electronic learning materials and resources. The UTS web-based communication tool (Blackboard Course Information) will be used to share information and encourage interaction between staff and students. Students will also use appropriate computer software such as spreadsheets and word processors to complete assigned tasks.

Content

This subject contributes to the degree by exposing students to the core principles of financial management. This is important since financial mismanagement is a leading reason for business failure. An understanding of financial management principles, is an essential ingredient in the development of a broad appreciation of business practices sought in a Masters program.

Indicative references

Ross, Thompson, Christensen, Westerfield, Jordan; (2001), Fundamentals of Corporate Finance, Second Australian Edition, McGraw-Hill/Irwin, Sydney

Aungles, S.B. and Parker, S.R. (1998), Work: Organisations and Change, Allen and Unwin, Sydney.

Bishop, S.R, Crapp, H.R, Faff, R.W, and Twite, G.J; (2000), Corporate Finance, 4th Ed Prentice Hall, Sydney

Brealey, R.A. and Myers, S.C; (2003), Principles of Corporate Finance, 7th Ed McGraw-Hill, New York.

Brealey, R.A, Myers, S.C, Partington, G, Robinson, D; (2000), Principles of Corporate Finance, 1st Australian Edition, McGraw-Hill, Sydney.

Gitman, L.J and Madura, J; (2001) Introduction to Finance, 1st Edition, Addison Wesley Longman, New York.

Person, G, Brown, R, Easton, S, Howard, P, (2002) Business Finance, 8th Edition, McGraw-Hill, Sydney