BUS203 Business Finance

Unit outline

Important Update: Our aim is to provide you with an optimal learning experience, regardless of how this unit is delivered. Teaching will be delivered in line with the most current COVID Safe health guidelines.  This may include a mix of online and face-to-face.  Please check the learning management system for announcements and updates. Thank you for your flexibility and commitment to studying with Sydney Institute of Higher Education. 
Enrolment modes: Year 2, Semester 1
Credit point(s): 12.5
EFTSL value: 0.125
Prerequisite: Nil
Typical study commitment: Students will on average spend 10 hours per week over the teaching period undertaking the teaching, learning and assessment activities for this unit.
Scheduled learning activities: 4 timetabled hours per week, 6 personal study hours per week

Unit description 

This unit introduces students to the introductory concepts and theories of business finance. Students will be able to define a range of finance terminologies and apply their mathematical skills to solve simple financial problems. By the completion of the unit, students are expected to have a general understanding of the Australian and international financial markets, the role of organisational treasuries, and how to deploy and raise capital, and make investment choices.


Unit learning outcomes (ULO)   

 
On the successful completion of this units student will be able to:
ULO1 Define key terminologies in business finance and understand the rationale behind the financial formulae.
ULO2 Explain the relationship between risk and return using the CAPM model and understand the portfolio theory.
ULO3 Use spreadsheets or a financial calculator to carry out financial mathematical calculations.
ULO4 Apply budgeting and investment techniques to evaluate and compare projects.
ULO5 Use financial theories to understand capital structure and dividend policy of an organisation.

Topics to be included in the unit

1. The time value of money
2. Investment decision rules
3. Valuing bonds
4. Valuing stocks 
5. Risk and return
6. Optimal portfolio
7. The capital asset pricing model (CAPM)
8. Capital structure
9. Cost of capital
10. Market efficiency
11. Dividend policy
12. Futures and options

Assessment

Assessment Description Grading and weighting
(% total mark for unit)
Indicative due week 
Assessment 1: Mid-Semester Exam 30% Mid-semester exam week 
Assessment 2: Group Assignment 20% 10
Assessment 3: Final Exam 50% Final exam week

The assessment due weeks provided may change. Your lecturer will clarify the exact assessment requirements, including the due date, at the start of the teaching period.