Finance assignment
Siti Nazrana 
BX2014JUCS2021SubjectOutline.pdf
2021 Subject Outline
Subject Name Financial Management
Subject Code BX2014
Study Period SP51
Study Mode INTERNAL
Subject Convener A/Prof. Huiping Zhang
Subject Coordinator Dr. Sandra Wallace/Dr. April Ye
Subject Lecturer Dr T Y Thong
We acknowledge the Traditional Owners of the lands and waters where our University is located and actively seek to contribute and support the JCU Reconciliation Statement, which exemplifies respect for Australian Aboriginal and Torres Strait cultures, heritage, knowledge and the valuing of justice and equity for all Australians.
© Copyright 2019
This publication is copyright. Apart from any fair dealing for the purpose of private study, research, criticism, or review as permitted under the Copyright Act, no part may be reproduced by any process or placed in computer memory without written permission.
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Contents
1 Subject Staff Contact Details ........................................................................................................ 2
2 Subject calendar ............................................................................................................................ 3
2.1 Key dates ............................................................................................................................... 5
3 Subject details ................................................................................................................................ 5
3.1 Subject description ................................................................................................................. 5
3.2 Subject learning outcomes ..................................................................................................... 5
3.3 Learning and teaching in this subject...................................................................................... 5
3.4 Student participation requirements ......................................................................................... 7
3.5 Feedback on student learning ................................................................................................ 7
3.6 Subject resources and special requirements .......................................................................... 7
3.7 Student Support ..................................................................................................................... 7
4 Assessment details ......................................................................................................................... 9
4.1 Requirements for successful completion of subject ................................................................ 9
4.2 Assessment tasks .................................................................................................................. 9
4.3 JCU assessment policy ........................................................................................................ 12
4.4 JCU assessment support ..................................................................................................... 12
5 Rubrics ......................................................................................................................................... 13
1 Subject Staff Contact Details
Teaching team
Staff member
Room
Phone
Email Consultation
times*
Subject Convener
A/Prof. Huiping Zhang
Subject Coordinator
Dr Sandra Wallace & Dr April Ye
Lecturer Dr T. Y. C03-06 6709-3725 [email protected] Per appointment
Per email
Tutor Dr T. Y. C03-06 6709-3725 [email protected] Per appointment
Per email
*Other consultation times strictly by appointment only due to COVID-19 measures.
Business Online contact details:
Please email [email protected] for support and assistance with all educational technologies
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2 Subject calendar Please note, the sequence of some topics may change due to staff availability, resourcing, or due to unforeseen circumstances.
Lecture Week Subject activity 1 Subject activity 2 Readings
(Insert relevant activity e.g. (Insert relevant activity e.g. Tutorial/ Lecture/Module) Workshop/Laboratory/Collaborate
session)
Preparation Relationship to Assessment
1
Lecture 1 Overview of fi
18/03/2021 management nance & financial Ch 1 CTCR 1.1, 1.5, 1.6 Introduction (Chapter 1) Mid-term Exam
Ch 16 CTCR 16.2, 16.3 Short-term financial management
Q&P 6, 7, 17 (Chapter 16 & 17)
Ch 17 CTCR 17.1, 17.5, 17.7
2
Lecture 2 Time value of
25/03/2021
money (TVM) Ch 4 CTCR 4.1, 4
Q&P 6, 7, 19, 2
.8, The time value of money Mid-term Exam & Final Exam
4, 26, 27 (Chapter 4)
3
Lecture 3 Discounted cash flows (DCF) Ch 5 CTCR 5.4, 5
01/04/2021 Q&P 12, 13,
.5, 5.9, Discounted ca
21, 37, 39 (Chapter 5)
sh flow valuation Mid-term Exam & Final Exam
4
Lecture 4 Valuing share
08/04/2021
s and bonds Ch 6 CTCR 6.4, 6
Q&P 1, 8, 9,
Ch 7 CTCR 7.1, 7
Q&P 12, 16, 1
.6, 6.8 Interest rates, bill and bond Mid-term & Final Exam
15, 23 valuation (Chapter 6) Equity markets and share valuation
.2 (Chapter 7)
8, 21, 23
5
Lecture 5 Risk and retu
15/04/2021 rn (CAPM) Ch 10 CTCR 10.3, 10.7, Capital markets (Chapter 10) Assignment & Final Exam
Q&P 4, 5, 8 Risk and return (Chapter 11)
Ch 11 CTCR 11.6, 11.8, Q & P 11, 13, 19,
6
Lecture 6 Cost of Capital (WACC) Ch 12 CTCR 12.1, 12.3, 12.8, 12.9, Cost of capital
22/04/2021 Q&P 9, 17, 18
(Chapter 12 Assignment & Final Exam
Recess Week 19/12/2019 – 27/12/2020
7
Lecture 7 Capital budgeting techniques Ch 8 CTCR 8.5, 8.7, 8.12 Net present value and other
29/04/2021 NPV, IRR, Payback Period Q&P 1, 10, 18, 28 investment criteria (Chapter 8) Final Exam
8
Lecture 8 Capital budgeting applications Ch 9 CTCR 9.4, 9
06/05/2021 Q&P 2, 4, 9,
.5, 9.8, Making capital
10, 24 (Chapter 9
investment decisions
Final Exam
9
Lecture 9
20/05/2021
Leverage & capital structure Ch 13 CTCR 13.1, 13.2, 13.8
Q&P 9, 10, 16
Leverage and capital structure
(Chapter 13)
Modigliani & Miller Theorem Final Exam
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10 Lecture 10
27/05/2021
Risk Management Ch 23 CTCR 1,6
Q&P 1, 4, 6
Derivatives
(PDF of Ross Ch 23 on LearnJCU)
Final Exam
07/06/2021 – 18/06//2021
Exam Week
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2.1 Key dates
Key dates Date
Census date 08 April 2021
Last date to withdraw without academic penalty 30 April 2021
Assessment task 1: Online quizzes (10%) Quiz 1: 26 April 2021 – 30 April 2021
Quiz 2: 24 May 2021 – 28 May 2021
Assessment task 2: Mid-term test (20%) 20 May 2021 during lecture time (2-hour online)
Assessment task 3: Business report: WACC (20%) Due 28 May 2021 (Friday) at 5 p.m. (SG time)
Assessment task 4: Examination (50%) Due centrally administered/end-of-study period
Details will be announced in due course
3 Subject details
3.1 Subject description
This subject provides an introduction to the discipline of finance and the practice of corporate financial management. Topics include the time value of money, risk and return, cost of capital, capital structure, capital budgeting and short term financial management.
3.2 Subject learning outcomes
Students who successfully complete this subject will be able to:
SLO1. Appreciate the financial dimensions of corporate, business, and personal investment and financing decisions
SLO2. Analyse and evaluate a range of financial investment options
SLO3. Understand, calculate and apply the cost of capital (WACC)
SLO4. Critical evaluate capital structure alternatives and apply financial decision criteria to financing and dividend decisions
These outcomes will contribute to your overall achievement of course learning outcomes. Your
course learning outcomes can be located in the entry for your course in the electronic JCU Course and Subject Handbook 2019 (click on ‘Course Information’ bar/ select ‘Undergraduate Courses’ or ‘Postgraduate Courses’/ select relevant course/ scroll down to ‘Academic Requirements for Course Completion’, ‘Course learning outcomes’).
3.3 Learning and teaching in this subject
As a first course in finance, this subject emphasises the basic principles of finance and their application
in a dynamic world. Whether you work in the field or not, the principles of finance are a valuable tool in
your active management of your career. Your active participation is crucial to achieving the learning
objectives. Assessment aligns with skills crucial to the practice of finance and focus on the four key
decision areas in finance – investment decisions, financing decision, dividend decisions, and risk
management decisions.
The experience of many students is that a weekly commitment to study is the only way to attain the
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learning outcomes. One possible way to maintain your study effort is:
Read the text chapter(s) – work the examples in the text as you read
Listen to the lecture (face to face or recorded). Do not skip lectures because you may be able to
view the recordings. The first four weeks of the subject are foundations for the later material and a
failure to gain and understanding of this material will prevent your ability to master the rest of the
subject.
Attempt the LearnJCU quiz (once)
Prepare solutions to the set questions / participate in the weekly learning activities
Attend the tutorial & workshop / join the online tutorial
Review the tutorial / solutions & attempt previous exam questions on the topic without reference
to your notes
Reflect on your application of what you have learned to the assignment issues
Lectures
Lectures provide the theory of financial decisions needed to solve financial problems. They also highlight the options available in applying the theory to practical situations.
Tutorials/Workshops
The tutorials and workshops have two important roles. First, they reinforce the theories presented in the lectures by providing practical applications to typical financial problems. Second, they provide building blocks, alternatives, and directions for the group project. You cannot expect to cram for this subject, it builds on the prior weeks so a failure to attend class is, in financial terms, a waste of money.
Please note that the regular tutorials will be held in the week of the in-class test.
Key subject activities Time Day & Date Room/Location
Lecture 09:00 – 11:50 Thursday Online BB Collaborate
Tutorial A (BX2014-TA) 12:00 – 13:50 Thursday Online
BB Collaborate
Tutorial E (BX2014-TE)
15:00 – 16:50
Thursday A1-03
Financial Lab
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3.4 Student participation requirements
The JCU Learning, Teaching and Assessment Policy (4.3) indicates that, “a 3 credit point subject will require a 130 hour work load of study-related participation including class attendance over the duration of the study period, irrespective of mode of delivery”. This work load comprises timetabled hours and other attendance requirements, as well as personal study hours, including completion of online
learning activities and assessment requirements. Note that “attendance at specified classes will be a mandatory requirement for satisfactory completion of some subjects” (Learning, Teaching and Assessment Policy, 5.10); and that additional hours may be required per week for those students in need of English language, numeracy or other learning support.
3.5 Feedback on student learning
Formal feedback will be provided in respect of the mid-semester test and assignment will be provided in the form of results for the in-class test and business report within 21 days of submission. Informal feedback is also provided during tutorials.
3.6 Subject resources and special requirements
All subject readings and resources, including journal articles, book chapters, websites, videos, print and eTextbooks, are available to view online from your Readings list via your LearnJCU subject site. Textbooks listed in your Readings list include links to Co-op Bookshop purchasing details and library
holdings. The JCU Library has limited print copies of prescribed textbooks for two-day loans, and options for viewing available eTextbooks online.
Additionally, you can find the most appropriate library subject resources, including dedicated discipline libguides, relevant databases and access to library services and staff through the Your Library tool, in
your LearnJCU subject site.
Prescribed Text
Ross, S. Trayler, R., Van De Venter, G.,Bird, R., Westerfield, R. W. &Jordan, B. D. (2017) Essentials of Corporate Finance (4th Edition). McGraw Hill.
Textbooks are available to purchase online through The Co-op Bookshop. The JCU Library has limited copies of all prescribed textbooks available for 2 day loans.
Further Reading
David, S. Kidwell, Mark Brimble, Paul Mazzola, Nigel Morkel-Kingsbury, and Jenny James (2018) Finance Essentials, John Wiley and Sons, Australia.
3.7 Student Support
Business Online responds to requests for assistance with all learning technology and associated
issues. Support is provided for LearnJCU, Pebble Pad, Blackboard Collaborate, recording presentations, Respondus LockDown Browser and Monitor, online exams, and other learning technologies. Help and Support is available 7 days a week, 8.30am - 8.00pm weekdays and emails checked by 3.00pm weekends. Contact: [email protected]
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For more student support services and related information look for Student Support Services in the Help and Support menu item on all CBLG LearnJCU subject sites.
4 Assessment details
4.1 Requirements for successful completion of subject
Achieve an overall percentage of 50% or more;
Submit a credible attempt at all assessment items within this subject. Students who have completed less than 100% of the assessment will be subject to review by the College Assessment Committee which could result in an ‘X’ grade (Fail (did not sit for exam/s or did not complete at least 80% of assessment requirements or deferred exam not granted)
Demonstrate regular attendance and engagement with the content of this subject in accordance with student participation requirements as outlined above, including but not limited to any mandatory face to face attendance or online session participatory attendance.
Hurdle subjects
In order to pass a Hurdle subject, as well as achieving the above-listed three dot points, you must also:
• Obtain an average of at least 50% over all supervised/invigilated individual assessment components within the subject
THIS SUBJECT IS A HURDLE SUBJECT
4.2 Assessment tasks
ASSESSMENT TASK 1: ONLINE QUIZZES
SLO 1. Appreciate the financial dimensions of corporate, business, and
personal investment and financing decisions
SLO 2. Analyse and evaluate a range of financial investment options
Aligned professional standards/ competencies
Apply the time value of money. Bond and stock valuations. Risk and return (CAPM)
Group or individual Individual
Weighting Online quiz1: 5%
Online quiz 2: 5%
Due date Quiz 1: 26 April 2021 – 30 April 2021
Quiz 2: 24 May 2021 – 28 May 2021
ASSESSMENT TASK 1: DESCRIPTION
The aim of this assessment is to measure the student’s understanding of topics 1-5 and 6-9 in Quiz 1 and Quiz 2, respectively.
Instructions: Please attend the lecture room at the scheduled lecture time
Useful Information:
The examination comprises both written and computational questions and covers content from topic 1 to 5 inclusive
Submission:
1. These quizzes are submitted online
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Return of assessment:
The marks of these quizzes will be available online through LearnJCU after completing these quizzes.
ASSESSMENT TASK 2: MID-TERM TEST
SLO 1. Appreciate the financial dimensions of corporate, business, and
personal investment and financing decisions
SLO 2. Analyse and evaluate a range of financial investment options
Aligned professional standards/ competencies
Apply the mathematics of finance and financial theories
Quantitative and qualitative structured questions
Group or individual Individual
Weighting 20%
Due date 20 May 2021 during lecture time (2-hour online)
ASSESSMENT TASK 1: DESCRIPTION
The aim of this assessment is to measure the student’s understanding of topics 1-5.
Instructions: Please attend the lecture room at the scheduled lecture time
Useful Information:
The examination comprises both written and computational questions and covers content from topic 1 to 5 inclusive
Submission:
1. This test is submitted online in SP53, 2020.
2. This test will be scheduled online in the event of special events, i.e. COVID-19, announced by the university
Return of assessment:
The marked assessment and feedback will be available online through LearnJCU no later than 21 days after the due date.
ASSESSMENT TASK 3: BUSINESS REPORT – ANALYTICAL
Aligned subject learning outcomes
SLO 3. Understand, calculate and apply the cost of capital (WACC)
SLO 4. Critical evaluate capital structure alternatives and apply financial decision criteria to financing and dividend decisions
Aligned professional standards/ competencies
Discuss how organisations are financed
Discuss how organisations make investment and distribution Decisions
Identify and explain basic financial risks and risk management concepts
Group or individual Individual
Weighting 20%
Due date Due in Week 10, 28 May 2021 (Friday) at 5 p.m. (SG time)
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ASSESSMENT TASK 3: DESCRIPTION
The aim of this assessment is to collaboratively analyse a publically listed Company and generate a business report (1500 word) that recommends and justifies an appropriate weighted average cost of capital (WACC, Topic 7).
Instructions
1. This is an individual assignment.
2. Select and analyse a publicly listed company on either the Australia Stock Exchange or the Singapore Stock Exchange.
3. Prepare an individual analytical report by completing the following tasks
a. Search for data and financial information e.g. the firm’s beta and the current risk free rate. Access to this type of data and information is obtained through the JCU library website. Review the
i. Bloomberg Terminal at JCUS Financial Lab
ii. Reserve Bank of Australia rba.gov.au – go to the statistics link (top right hand side, click and choose Interest Rates under the Economic and Statistics Section).
iii. Reference all information and the date of access as part of your referencing section in the report.
4. Calculate the Weighted Average Cost of Capital using an appropriate technique.
5. Explain your calculations and the judgements you made in arriving at your answer.
6. Calculate gearing ratios and describe any difficulties in doing so.
7. Analyse your findings with reference to capital structure theory.
8. Provide a recommendation to the Board on the firm’s current capital structure.
9. Provide a reflection on your work and your report. In undertaking your reflection you should consider the following (Hint it is helpful to keep notes on your sources of information in addition to the ones you chose).
a. What weights should you use when calculating the WACC, market value weights or accounting book values? To do this find the market value of equity (no. of shares times the share price) and the market value of financial debt (if no traded debt you may need to use accounting book values) then compare the weight calculations with those calculated using book values (shareholder funds plus total financial debt). Do they differ and what would you use?
b. What risk free rate would you use – 30 day, 3 month, 6 month 1 year, 3 year, 10 year, of 30 year? Would it make a difference?
c. Should you use a published beta such as that available on the Morning Star Data Base (DatAnalysis in the Library), calculate the beta yourself (you can get share prices and market indexes from Yahoo Finance), or pay someone to do it for you?
d. Do you calculate a return on the market or use the spread between the market and the risk free rate (6% to 8% premium according to research)?
e. Do you use the debt expense as per the accounts or some indicator rate?
Submission:
1. Upload your group Report to the assessment Task 3 dropbox on your LearnJCU subject site. Only one report needs be submitted per group and all group members must be listed on the report and their assigned group number identified.
2. Please ensure the format requirements below are met.
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a. The report shall be submitted on white paper, double spaced and be printed on ONE side of the page only
b. The paper size shall be A4 and may not be scented
c. The report shall be in Arial Font, size 11 pt and black colour
d. The report shall have a 3cm margin on the left hand side, 2.5 cm margin on the right hand side
e. The report shall have a 2.5 cm top margin and a 2.5 cm bottom margin.
f. The maximum word length is 1,500 words. This is ABSOLUTE. The word length of the report shall be shown at the bottom of the report.
g. The report shall be submitted with the approved CLBG cover sheet on the front.
h. The report is due at 5.00 pm on the due date.
i. Due to the nature of the assignment, all references to scholarly articles are required
j. Failure to comply with any of these requirements will result in a zero grade being awarded.
Return of assessment:
The marked assessment and feedback will be available online through LearnJCU no later than 21 days after the due date.
ASSESSMENT TASK 3 RUBRIC: See Section 5 Rubrics
ASSESSMENT TASK 4: EXAMINATION
Aligned subject learning outcomes
SLO 1. Appreciate the financial dimensions of corporate, business, and personal investment and financing decisions
SLO 2. Analyse and evaluate a range of financial investment options
SLO 3. Understand, calculate and apply the cost of capital
SLO 4. Evaluate capital structure alternatives and apply financial decision criteria to financing and dividend decisions
Aligned professional standards/ competencies
Apply the mathematics of finance
Describe the role of the finance and treasury function in an organisation
Discuss how organisations are financed
Explain the theory of capital markets
Discuss how organisations make investment and distribution decisions
Identify and explain basic financial risks and risk management concepts
Group or individual Individual
Weighting 50%
Due date In final examination period (TBA)
ASSESSMENT TASK 4: DESCRIPTION
The aim of this assessment is to measure student understanding of topics 6-12. Note that topics 1-5 will be regarded as assumed knowledge.
Instructions:
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1. Attend examination as scheduled
Useful Information:
Submission: At conclusion of exam
Return of assessment: End of semester exams remain the property of the university
4.3 JCU assessment policy
Please see the Learn Student Guide web page for general advice on plagiarism, referencing and examinations. Here, you can also access individual and group assessment task cover sheets. Note that cover sheets are only required for hard copy submissions.
Subject Outline Part B offers important information about Referencing and Plagiarism, Submission and Return of Assessment. Please refer to Subject Outline Part B in the ‘Subject Outline’ menu item on your LearnJCU subject site.
4.4 JCU assessment support
Please see the Current Students web page for links to all student resources and support services to optimise your academic and personal success.
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5 Rubrics
ASSESSMENT TASK 2: CRITERIA SHEET
CLO 11 Identify and learning opportunities and self-improvements
Not yet proficient N
Pass level P C
Competent D HD
Critical thinking
Unable to distinguish between practical choices when for the majority of options available in calculating a WACC
Able to use theory to distinguish between some practical choices but does not display an in- depth understanding of the theory available in calculating a WACC
Able to use theory to distinguish between practical choices when for the majority of options available in calculating a WACC
Self-
Awareness
Demonstrates interest in and engagement with their own experiences as a learner.
Makes assessments of their own capabilities and performance that demonstrate some accuracy.
Identifies both areas of accomplishment and areas for further improvement in relation to their own knowledge, skill development and personal approaches to learning and development.
Demonstrates accurate judgement of capabilities and performance to recognise key areas for success in both professional and personal well- being.
Reflection
Reviews past experiences to describe and interpret experiences with some depth.
Demonstrates some level of contemplation as to how the new insights may be applied in the future.
Reviews past experiences to interpret and evaluate experiences in depth.
Demonstrates sound level of contemplation as to how the new insights may be applied in the future.
Review prior learning in depth, revealing fully clarified meanings. Demonstrating a synthesis of life experiences resulting in a deep understanding of oneself and others and an ability to flex, adapt, and accommodate oneself to others and extant situations.
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CLO 6 Convey information clearly and fluently, in high quality written form appropriate for their audience Not yet proficient
N Pass level
P C Competent
D HD
Context of and Purpose for Writing
Includes considerations of audience, focus, purpose and the
circumstances surrounding the
writing task
Demonstrates a basic understanding of context, audience, focus and purpose of assigned task (e.g.: displays a basic awareness of audience’s requirements /expectations).
Demonstrates a sound understanding of context, audience, focus and purpose of assigned task (e.g.: displays awareness and reasonable alignment with audience, purpose and context).
Demonstrates a high level understanding of context, audience, focus and purpose of assigned task (e.g.: displays alignment with audience, purpose and context).
Content Development Logical flow, critical analysis, clear &
relevant outcomes; concise and cohesive
Demonstrates basic ability to organise content in a logical, concise and cohesive manner with basic critical analysis, and outcomes supported with evidence.
Demonstrates sound ability to organise content in a logical, concise and cohesive manner with sound critical analysis, and outcomes supported with clear evidence
Demonstrates a high level of ability to organise content in a logical, concise and cohesive manner with high level critical analysis, and outcomes supported with quality evidence
Control of Syntax and Mechanics
Sentence construction; grammar; punctuation & spelling
Uses appropriate language that generally conveys meaning to the readers, although writing may include some errors.
Uses appropriate language that conveys meaning to readers with clarity and minimal errors.
Uses appropriate language at a high level that conveys meaning to readers with clarity, and is virtually error- free.
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Subject outline preparation
This subject outline has been prepared by Ian Burnett/Ray McNamara for the College of Business Law and Governance Division of Tropical Environments and Societies James Cook University. Updated 30/1/2019
Q1. This subject is offered across more than one campus and/or mode and/or teaching period within the one calendar year.
Yes
☒ No ☐
Q2. If yes (Q1), the design of all offerings of this subject ensure the same learning outcomes and assessment types and weightings.
Yes
☒ No ☐
Subject outline reviewer
Name Colleen Hodgins
Position CBLG CDPO
Date reviewed 2/2/2019
