25558 Issues in Corporate Finance
Warning: The information on this page is indicative. The subject outline for a particular semester, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
UTS: Business: FinanceCredit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): 25557 Corporate Finance: Theory and Practice
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Handbook description
This subject explores advanced topics in corporate finance. Specific issues covered include the impact of taxation, agency conflicts and option pricing theory on corporate financial decisions; new-start valuation and financing; takeovers, mergers and acquisitions; and corporate restructuring.
Subject objectives
| 1. | appraise the effects of taxation on corporate financing and investment decisions |
|---|---|
| 2. | discuss the implications of option pricing theory and agency theory for corporate financial policy |
| 3. | explain the issues for valuation and financing of new and existing businesses |
| 4. | evaluate alternative strategies for corporate restructuring. |
Contribution to the development of graduate attributes
This subject builds on the foundation knowledge in finance and introduces students to advanced topics in corporate finance. It provides an overview of contemporary theories and examines their implications for corporate finance policy. Empirical evidence are analysed to gain an appreciation of issues in corporate finance decisions.
Teaching and learning strategies
The course will be taught using a combination of lectures and workshops. Both printed and electronic learning materials are available. Lecture materials are reinforced through discussion of tutorial questions.
Content
- Taxation, tax regimes and implications for financial decisions.
- Investment appraisals and option pricing theory
- Agency theory, stakeholders and financial choices
- Innovations in financing techniques
- Valuation and financing of new business
- Mergers and acquisitions
- Corporate restructuring.
Assessment
Assessment task 1: Assignment (Group)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 20 |
Assessment task 2: Mid-Semester Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 4 |
|---|---|
| Weight: | 25 |
Assessment task 3: Final Examination (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 55 |
Minimum requirements
To pass this subject an overall grade of 50% or more is required.
Required texts
Berk, Jonathan and Demarzo, Peter, Corporate Finance, 2nd 2010 edition, Pearson Global Edition, isbn 9780137067350.
Recommended texts
Brealey, R., Myers, S., Partington, G., and Robinson, D., Principles of Corporate Finance, 1st Australian edition, McGraw-Hill/Irwin, 2000
References
Faculty of Business (2006), Guide to Writing Assignments (available through UTSOnline or at www.business.uts.edu.au/resources/guide.html)
Lecture overheadsCopies of the lecture overheads will also be available in Powerpoint and posted on UTSOnline.
Students may either review the notes using electronic devices, like the iPad, or print the slides in their preferred format.
Note that the subject slides are not a substitute for the recommended textbook.
A sample mid-semester exam with solution will be available on UTSOnline. Final exam will be similar to the mid semester in structure. No sample final exam will be provided.
Other resources
In this subject UTSOnline is used for communicating information and for facilitating discussions.
UTSOnline will be used to support your studies as follows:
- Announcements about this subject will be posted regularly by the subject coordinator
- To provide electronic copies of subject materials such as subject outline, lecture notes, PowerPoint slides and subject documents
- To provide links to other digital resources and websites
- To talk with other students about your studies and share resources or ideas
- To post students' marks to the gradebook
