25742 Financial Management
UTS: Business: Finance and EconomicsCredit points: 6 cp
Subject level: Postgraduate
Result Type: Grade and marksHandbook 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:
- 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?
- use analytical techniques to making informed financial management decisions
- 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.
Assessment
Assessment item 1: Mid Semester exam (Individual)
| Objective(s): | 1, 2, 3 |
| Weighting: | 30% |
| Task: | The mid semester exam is designed to assess students' understanding of the theories and concepts to demonstrate that students have met objectives. |
Assessment item 2: Assignment (Group)
| Objective(s): | 1 to 3 |
| Weighting: | 20% |
| Task: | This will assess students' understanding of the concepts of capital budgeting in a practical application of the investment decision in finance. It will also allow students to demonstrate that they can use both spreadsheets and word processing packages to tackle practical valuation problems. |
Assessment item 3: Final Exam (Individual)
| Objective(s): | 1 to 3 |
| Weighting: | 50% |
| Task: | This exam, consisting of multiple choice and short answer questions, will test students' understanding of the theory and their ability to apply the theory to financial management decisions. |
Required text(s)
Ross, Thompson, Christensen, Westerfield, Jordan; Fundamentals of Corporate Finance, Fourth Australian Edition, McGraw-Hill/Irwin 2007
Indicative references
Lecture notes: A FM resources book is provided in the first lecture. This book has copies of the lecture power point slides, a trial final exam with formula sheet and solutions to the self learn tutorial questions. Students should acquaint themselves with Faculty of Business Guide to Writing Assignments in preparation for the case study submission.
