FINM3401 - Sem 2 2013 - St Lucia - InternalPrinted: 13 July 2014, 01:45PM

This printed course profile is valid at the date and time specified above. The course profile may be subject tochange during the semester – the online version is the authoritative version.

1. General Course Information

1.1 Course Details

Course Code: FINM3401 Course Title: Corporate Finance Coordinating Unit: School of BusinessSemester: Semester 2, 2013 Mode: InternalLevel: Undergraduate Location: St LuciaNumber of Units: 2 Contact Hours Per Week: 2L2T Pre-Requisites: BSFN2401 or COMM2501 or FINM2401 Restrictions: Quota: Minimum of 35 enrolments Incompatible: BSFN3401 or 7402 or CO352 or 851 or COMM3502 or 7503 or FINM7402Course Description: In-depth analysis of financial issues confronting most companies. Strong focus onapplication & practical relevance. Topics include valuation & project analysis, real option valuation, capitalraising, financing & dividend policy, risk management & corporate strategy.Assumed Background:Students are expected to have a thorough knowledge of all material covered in an introductory financecourse, or comparable breadth and difficulty to FINM7401 Finance. I emphasise the words "thoroughknowledge" of this material. Students who enrol in Corporate Finance without this knowledge find thecourse extremely difficult and have a significantly lower probability of successful completion.

1.2 Course Introduction

This course covers five major topics in corporate finance:1. transactions (initial public offerings, convertible securities and mergers & acquisitions), 2. capital structure,3. discounted cash flow valuation;4. risk management; and5. real options valuation.

The aim is to provide a deep understanding of the theory that forms the basis of corporate finance andhow this can be applied to "real world" issues.Before attempting this course, students are advised that it is important to complete the appropriateprerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by theSchool of Business, the Faculty of Business, Economics and Law or the University of Queensland forpoor student performance occurring in courses where the appropriate prerequisite(s) has/have notbeen completed, for any reason whatsoever.

Course Changes in Response to Previous Student Feedback

Not Applicable.

1.3 Course Staff

Course Coordinator: Dr Vanitha Ragunathan

1.4 Timetable

Timetables are available on mySI-net.

Additional Timetable InformationIt is important that you sign-up for a lecture and tutorial. Please check si-net for the Lecture andTutorial timetable and sign-up for a lecture and Tutorial that works best for your schedule. Also notethat sign-up is done on a first-come-first-served basis.

2. Aims, Objectives & Graduate Attributes

2.1 Course Aims

This course covers the major topics in Corporate Finance such as Capital Structure, Dividend Policy, RealOptions, and Initial Public Offerings. The aim is to provide a deep understanding of the theory that formsthe basis of corporate finance and how this can be applied to "real world" issues.

2.2 Learning Objectives

After successfully completing this course you should be able to:

1 Analyse whether a proposed corporate transaction is in the best interests of the firm'sshareholders.2 Estimate a firm's weighted average cost of capital under classical and imputation systems;and analyse the relationship between capital structure, the cost of capital and value.3 Perform a discounted cash flow valuation and analyse its sensitivity to alternativeassumptions underlying its cash flows and discount rate.4 Estimate the impact on a firm's cash flows from implementing a risk management policyusing forwards, futures and options contracts; and estimate the intrinsic value of thosecontracts.5 Identify real options which are likely to affect firm value and perform a real options valuation.6 Determine the ways to finance projects

2.3. Graduate Attributes

Successfully completing this course will contribute to the recognition of your attainment of the followingUQ (Undergrad Pass) graduate attributes:

GRADUATE ATTRIBUTE LEARNINGOBJECTIVES

A. IN-DEPTH KNOWLEDGE OF THE FIELD OF STUDY

A1. A comprehensive and well-founded knowledge in the field of study. 1, 2, 3, 4, 5

A4. An understanding of how other disciplines relate to the field ofstudy.

1, 2, 3, 4, 5

A5. An international perspective on the field of study. 1, 2, 3, 4, 5

B. EFFECTIVE COMMUNICATION

B1. The ability to collect, analyse and organise information and ideasand to convey those ideas clearly and fluently, in both written andspoken forms.

1, 2, 3, 4, 5

B2. The ability to interact effectively with others in order to work towardsa common outcome.

B3. The ability to select and use the appropriate level, style and meansof communication.

1, 2, 3, 4, 5

B4. The ability to engage effectively and appropriately with informationand communication technologies.

1, 2, 3, 4, 5

C. INDEPENDENCE AND CREATIVITY

C1. The ability to work and learn independently. 1, 2, 3, 4, 5

C3. The ability to generate ideas and adapt innovatively to changingenvironments.

1, 2, 3, 4, 5

C4. The ability to identify problems, create solutions, innovate andimprove current practices.

1, 2, 3, 4, 5

D. CRITICAL JUDGEMENT

D1. The ability to define and analyse problems. 1, 2, 3, 4, 5

D2. The ability to apply critical reasoning to issues through independentthought and informed judgement.

1, 2, 3, 4, 5

D3. The ability to evaluate opinions, make decisions and to reflectcritically on the justifications for decisions.

1, 2, 3, 4, 5

E. ETHICAL AND SOCIAL UNDERSTANDING

E1. An understanding of social and civic responsibility.

E2. An appreciation of the philosophical and social contexts of adiscipline.

1, 2, 3, 4, 5

E4. A knowledge and respect of ethics and ethical standards in relationto a major area of study.

1, 2, 3, 4, 5

E5. A knowledge of other cultures and times and an appreciation ofcultural diversity.

3. Learning Resources

3.1 Required Resources

Jonathan Berk and Peter DeMarzo - Corporate Finance, 3rd edition, Pearson.

Additional readings, notes, problems and spreadsheets will be posted to the course website.

3.2 Recommended Resources

Not applicable.

3.3 University Learning Resources

Access to required and recommended resources, plus past central exam papers, is available at the UQLibrary website (http://library.uq.edu.au/search/r?SEARCH=FINM3401).

The University offers a range of resources and services to support student learning. Details areavailable on the myServices website (https://student.my.uq.edu.au/).

3.4 School of Business Learning Resources

Not applicable.

3.5 Other Learning Resources & Information

All courses are supported by the UQ Learning Management System, Blackboard Learn, which providesan interactive environment for the students and teachers. This is accessible via PC or Mac or Mobile(Apps) environment. To log on to Blackboard click here: https://learn.uq.edu.au. As Blackboard is aweb‐based application, you will need a recently‐released browser for your computer. Blackboardrecommends that you use one of the following:

Internet Explorer 8 or laterFirefox 3.6 or laterSafari 4 or later

The latest browsers are available online from the UQconnect website athttp://uqconnect.net/helpdesk/downloads or on the free CDs available from Ask I.T. and UQconnectdesks. Contact Ask I.T. on (07) 3365 8811 http://www.library.uq.edu.au/ask‐it or UQconnect on (07)3365 6000.

4. Teaching & Learning Activities

4.1 Learning Activities

Date Lecture Other Activities

22 Jul -28 Jul

Mon - FriReview of Capital Budgeting: Valuing

projects when capital structure is irrelevant1.Introduction to Corporate Valuation

2.Estimating Free CashflowsLearning Objectives: 1

Readings/Ref: Book (Chapter 4 andsections 22.5-6);

29 Jul -4 Aug

Mon - FriCost of Capital: Estimating Cost of Capital

when capital structure is irrelevant1.Choosing the correct risk free rate2.Calculating the correct project beta

3.Calculating the correct market price of riskLearning Objectives: 2

Readings/Ref: Book (Chapter 12 andsections 5.3 and 8.1);

5 Aug -11 Aug

Mon - FriFinancial Options: 1. Introduction to

Derivatives2. The Basics of Option Pricing

Learning Objectives: 4, 5Readings/Ref: Book (Chapter 20, Section

21.2);

12 Aug -18 Aug

Mon - FriInvestment projects as real options:Asset Options and the Proper Use of NPV

Learning Objectives: 5Readings/Ref: Book (Chapters 22);

19 Aug -25 Aug

Mon - FriCapital Structure Irrevance: 1. The

financial structure of the firm2. Modigliani & Miller Irrelevance Proposition

Learning Objectives: 6Readings/Ref: Book (Chapters 14);

Mon - FriCapital structure in a world with Taxes:

26 Aug -1 Sep

The role of debt and taxesLearning Objectives: 6

Readings/Ref: Book (Chapter 15);

2 Sep -8 Sep

Mon - FriCapital structure in an Imperfect World:Capital structure with the costs of financial

distress and asymmetric informationLearning Objectives: 6

Readings/Ref: Book (Chapter 16);

Mon - FriMid-Semester Test (Exam): The mid-

semester test will cover all material from thelectures on Capital Budgeting, Options (andReal Options) and the first lecture on Capital

Structure (i.e. Lectures 1 TO 5).

Note: The test will be held on one of threesaturdays (31/08; 7/09; 14/09) set aside bythe University for Mid-Semester tests. So,

the date is tentative at this stage. There willbe NO lecture in the week of the mid-

semester test.Learning Objectives: 1, 2, 5, 6

9 Sep -15 Sep

Mon - FriPayout Policy: 1. Modigliani-Miller on

Dividends; 2. Role of Taxes; 3.Manager’s incentives for setting dividends;

4.Dividends as Signals of Firms Prospects;and

5. The Dividend Imputation SystemLearning Objectives: 2, 6

Readings/Ref: Book (Chapter 17);

23 Sep -29 Sep

Mon - FriGuest Lecture: The guest lecturer is Ms.

Prue Mackenzie of Aurizon Holdings.Learning Objectives: 6

Readings/Ref: Book (Chapters 15, 26, 23and 24);

7 Oct -13 Oct

Mon - FriRaising Capital I: This lecture will focus onthe ways in which a firm can raise financing

for projects.Learning Objectives: 6

Readings/Ref: Book (Chapter 23 and 24);Learning Objectives: 6

Readings/Ref: Book (TBD);

14 Oct -20 Oct

Mon - FriRaising Capital II:: This lecture is on theways in which a firm can raise financing for

projects. The lecture will focus onConvertible Secutities.Learning Objectives: 6

Readings/Ref: Book (TBD);Learning Objectives: 1

Readings/Ref: Book (Chapter 28);

21 Oct -27 Oct

Mon - FriReview Lecture: Course Overview

4.2 Other Teaching and Learning Activities Information

Tutorial/Small Group SessionsTutorials/Small group sessions in this course are conducted each week commencing in Teaching Week2. Class sizes are limited. Times and registration for these sessions are available through mySI-Net.You must sign on for your preferred session electronically. Should you experience problems, pleasecontact the teaching staff in Teaching Week 1. Once you are included in a group, you should attend thatgroup only each week. Changes will be permitted only in exceptional circumstances, and only afterdiscussion with teaching staff. It is the Course Coordinator's expectation that tutorials in this course will

be conducted in a professional and conscientious manner.

ConsultationTeaching staff are there to assist you. Staff members have set consultation times during which you maysee them without making an appointment. Consultation times for staff are posted on the coursewebsite and on individual staff member's doors. Consultation outside of these times is by appointmentonly. If you have questions or points that require clarification, you may visit during consultation times.If staff members are unavailable, leave a message with your name and telephone number or sendthem an email. Where applicable, you may also use the course's online Discussions to seek assistancefrom both your peers and staff. Messages will be posted on this medium regularly and you must takethe time to read these each week. All content related discussions (ie announcements about the course)will take place in the Main topic that is a public forum that everyone in the course is able to access andread.

AdministrationAll content related questions and specific questions re the administration of this course should, in thefirst instance be directed to the tutor/s involved in delivery of the course. Content matters that cannotbe dealt with by the tutor should then be referred to the course co-ordinator. General administrativequestions (for example centrally timetabled exams, room venues, etc) may be addressed to the UQBusiness School Office on Level 2 Colin Clark Building, St Lucia Campus.

5. Assessment

5.1 Assessment Summary

This is a summary of the assessment in the course. For detailed information on each assessment, see5.5 Assessment Detail below.

Assessment Task Due Date Weighting LearningObjectives

Exam - Mid Semester OutsideScheduled Class

Mid-semester exam

TBA - August 31st, Sept 7thor 14th September 35% 1, 2, 3, 4, 5

Exam - during Exam Period(Central)

Final examExamination Period 65% 1, 2, 3, 4, 5, 6

5.2 Course Grading

Grade X: No assessable work received.

Grade 1, Fail: Fails to demonstrate most or all of the basic requirements of the course: -

Grade 2, Fail: Demonstrates clear deficiencies in understanding and applying fundamental concepts;communicates information or ideas in ways that are frequently incomplete or confusing and give littleattention to the conventions of the discipline: -

Grade 3, Fail: Demonstrates superficial or partial or faulty understanding of the fundamental conceptsof the field of study and limited ability to apply these concepts; presents undeveloped or inappropriate orunsupported arguments; communicates information or ideas with lack of clarity and inconsistentadherence to the conventions of the discipline: -

Grade 4, Pass: Demonstrates adequate understanding and application of the fundamental concepts ofthe field of study; develops routine arguments or decisions and provides acceptable justification;communicates information and ideas adequately in terms of the conventions of the discipline: -

Grade 5, Credit: Demonstrates substantial understanding of fundamental concepts of the field of studyand ability to apply these concepts in a variety of contexts; develops or adapts convincing argumentsand provides coherent justification; communicates information and ideas clearly and fluently in terms of

the conventions of the discipline: -

Grade 6, Distinction: As for 5, with frequent evidence of originality in defining and analysing issues orproblems and in creating solutions; uses a level, style and means of communication appropriate to thediscipline and the audience: -

Grade 7, High Distinction: As for 6, with consistent evidence of substantial originality and insight inidentifying, generating and communicating competing arguments, perspectives or problem solvingapproaches; critically evaluates problems, their solutions and implications: -

Other Requirements & Comments :Grades will be allocated according to University-wide standards of criterion Based Assessment.

GradeCut Off %Range

CumulativeWeighted Grade

1 (Serious Fail) 0 - 29 0 - 1.99

2 (Fail) 30 - 46 2.0 - 3.74

3 (Fail) 47 - 49 3.75 - 3.99

4 (Pass) 50 - 64 4.0 - 4.79

5 (Credit) 65 - 74 4.8 - 5.79

6 (Distinction) 75 - 84 5.8 - 6.19

7 (High Distinction) 85+ 6.2 - 7.0

5.3 Late Submission

Requests for the granting of extensions must be made in writing (not via email) to the CourseCoordinator at least 24 hours prior to the submission date. The request must also containdocumentation satisfactorily supporting the request. If an extension is approved, the new agreed datefor submission will be noted on the application together with the Course Coordinator's and thestudent's signatures and a copy returned to the student.

Items (for which no extension has been granted) submitted after the due date and time, incur a latesubmission penalty. The penalty is at the rate of 5% (0.4 of a grade) of the total available marks forthat particular piece of assessment, for each calendar day or part thereof that the item is overdue.

The above late submission information does not apply to honours theses, 8 unit research theses, 4unit research projects and 2 unit research reports. For extension and late submission information inrelation to these courses see section 5.4 of the course profile.

5.4 Other Assessment Information

ASSIGNMENT SUBMISSIONAll assignments are to be electronically submitted to the course Blackboard site. All instructions are inthe Assessment section of the Blackboard course site. This is in addition to any other arrangement thatyour course coordinator instructs you in the ECP Assessment Summary.

DEFERRED EXAMS

Midsemester ExaminationsA student who fails to sit the midsemester examination and/or the multiple choice test at the scheduledtimes will be awarded a mark of zero, unless the Head of School is supplied with an “Application for aDeferred Midsemester Examination” with appropriate documentation satisfactorily explaining thestudent's absence. The application must be submitted either prior to the scheduled date of themidsemester exam, or no later than five days after the midsemester examination. The deferredmidsemester examinations will take place on Saturday 28 September 2013. All deferredmidsemester examinations within the Business School will take place on this date. A timetable for thedeferred midsemester examinations will be available early in the week commencing 23 September.

This will be the only opportunity to take the deferred midsemester examination. Any student who is

granted a deferred midsemester examination and who fails to attend at the appointed time and placewill be awarded a mark of zero as per the University’s General Award Rules. The process for applyingfor deferred midsemester exams is as follows:

1. Obtain the application form from www.uq.edu.au/myadvisor/forms/exams/SpecAppForm.pdf;

2. Complete the application and attach all required documentation. A student’s application must include—

a. if made on medical grounds, a medical certificate covering the date of the examinationsigned by a medical practitioner or registered nurse no later than 2 business days after theexamination and stating that the student was unfit to sit the examination on the relevant day;

or

b. if made on non-medical grounds, a statement of reasons why the student was unable to sitthe examination on the relevant day and all corroborating evidence.

3. Submit the completed application with the attached documentation to the Student Centre.

4. You will receive an email to your student email account (within 3 business days) indicating whetheror not your application has been approved.

5. Any enquiries regarding midsemester deferred examinations should be directed to the ExaminationsOfficer, exams.officer@business.uq.edu.au.

Final ExaminationsA student who is unable to sit or complete a scheduled final examination must apply for a deferredexamination no later than 5 days after the date the original examination was held. Applications shouldbe lodged at a Student Centre. Faculties may approve applications for deferred examinations under thebroad headings medical, compassionate or exceptional circumstances. Deferred examinations are notautomatically granted. For further information (such as evidence required and time limits) please seeMyAdvisor http://www.uq.edu.au/myadvisor/index.html?page=2995.

SUPPLEMENTARY ASSESSMENTSupplementary assessment is an additional opportunity to demonstrate that the learning requirementsfor the course have been satisfied and that the graduate attributes for the course have been attained.Supplementary assessment will be granted only where the General Award Rules and Program Rulesallow.

For all UQ Business School courses supplementary assessment is weighted at 100% and covers thelearning outcomes for the course. This means that the marks obtained for any progressive assessmentthroughout the semester are disregarded and the final result for the course is based entirely on theperformance in the supplementary assessment.

The highest grade that can be received for supplementary assessment is a grade of 4.

For further information on supplementary assessment please see My Advisorhttp://www.uq.edu.au/myadvisor/?page=2954.

CALCULATOR POLICYIf a calculator is permitted for use in an examination in this course, the calculator must comply with theUniversity of Queensland Calculator Scheme. Where calculators are permitted for use in theexamination, students are advised to ensure that the calculator complies with the type nominated byyour course coordinator. Unless the type is unrestricted, the calculator must be either a Casio FX82series calculator, or have an 'approved label' attached which can be obtained from the Student Centre.Please refer to myAdvisor site http://www.uq.edu.au/myadvisor/exam-calculators for information onthe use of calculators in examinations.

5.5 Assessment Detail

Mid-semester examType: Exam - Mid Semester Outside Scheduled ClassLearning Objectives Assessed: 1, 2, 3, 4, 5Due Date: TBA - August 31st, Sept 7th or 14th September

Weight: 35%Reading: 10 minutesDuration: 90 minutesFormat: Multiple-choice Task Description:The exam covers all topics relating to Capital Budgeting and Capital Structure (i.e. Lecture 1 to 5) andwill be held during one of three saturdays set aside by the university for Mid-Semester test. Thesedates are: 31st Augusr, 7th September or 14th September. There will be NO lectures in the week of themid-semester test.

If you are unable to sit the exam because of illness or other valid reasons, you need to follow UQBusiness School's procedure relating to Deferred Exams.

Final examType: Exam - during Exam Period (Central)Learning Objectives Assessed: 1, 2, 3, 4, 5, 6Due Date: Examination PeriodWeight: 65%Reading: 10 minutesDuration: 120 minutesFormat: Multiple-choice, Short answer Task Description:All topics are examinable. 4 - 6 short answer questions with multiple parts

6. Policies & Guidelines This section contains the details of and links to the most relevant policies and course guidelines. Forfurther details on University Policies please visit myAdvisor and the Policy and Procedures Library.

6.1 Assessment Related Policies and Guidelines

University Policies & Guidelines

An overview of the University’s assessment-related policies can be found on myAdvisor(http://www.uq.edu.au/myadvisor/index.html?page=2910).

Academic IntegrityIt is the University's task to encourage ethical scholarship and to inform students and staff aboutthe institutional standards of academic behaviour expected of them in learning, teaching andresearch. Students have a responsibility to maintain the highest standards of academic integrity intheir work. Students must not cheat in examinations or other forms of assessment and mustensure they do not plagiarise.

PlagiarismThe University has adopted the following definition of plagiarism:

Plagiarism is the act of misrepresenting as one's own original work the ideas,interpretations, words or creative works of another. These include published andunpublished documents, designs, music, sounds, images, photographs, computer codes andideas gained through working in a group. These ideas, interpretations, words or works maybe found in print and/or electronic media.

Students are encouraged to read the UQ Student Integrity and Misconduct policy(http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct) which makes acomprehensive statement about the University's approach to plagiarism, including the approveduse of plagiarism detection software, the consequences of plagiarism and the principles associatedwith preventing plagiarism.

Applications for Extensions

Medical grounds: Applications for extension on medical grounds shall be made by lodging theApplication for Extension of Progressive Assessment form and supporting documentation at thelocation outlined in Section 5.3 of the Electronic Course Profile for the course concerned.Exceptional circumstances: Applications for extension on the grounds of exceptionalcircumstances shall be made to the relevant Course Coordinator/Program Director by lodgingthe Application for Extension of Progressive Assessment form and a personal statementoutlining the grounds for the application at the location and by the due date outlined in Section5.3 of the Electronic Course Profile for the course in which this application is made. If theexceptional circumstances are such that the student cannot reasonably be expected to havecomplied with these conditions, a case should be made as to why these conditions could not bemet.Outcome of application: Students will be advised of the outcome of their application via theirstudent email.

Feedback on AssessmentFeedback is essential to effective learning and students can expect toreceive appropriate and timely feedback on all assessment. For a detailed explanation of thefeedback you are entitled to, you should consult the policy on Student Access to Feedback onAssessment. (https://ppl.app.uq.edu.au/content/3.10.02-assessment)

As a student you have a responsibility to incorporate feedback into your learning; make use of theassessment criteria that you are given; be aware of the rules, policies and other documents relatedto assessment; and provide teachers with feedback on their assessment practices.

There are certain steps you can take if you feel your result does not reflect your performance.Please refer to the myAdvisor web site. (http://www.uq.edu.au/myadvisor/index.html?page=2953)

School of Business Assessment Guidelines

Policy on Consultation for Progressive AssessmentWhilst staff members are genuinely sympathetic to assessment grievances, individual reviews ofprogressive assessment is not feasible on a large scale. Accordingly, following the release ofmarks, consultation will be strictly limited as follows:

Students will be seen only in designated consultation hours, or by appointment.No consultation will occur on the day of the release of marks.The consultation period will be limited.Priority at all times will be given to those students who did not achieve the pass mark for thatpiece of assessment.

Perusal of Final Examination PapersStudents are permitted to peruse their final examination papers but should note that this is not anopportunity to seek remarking of papers.

The Online Exam Viewing procedures are:

Register at Student Notices - Exam Viewing and click on “this web page” and use the “Requestto View Exams” button to register for the appropriate viewing session.Students should log in using their normal UQ name (e.g. s9990000) and password.

The sessions are scheduled during weeks 1 and 2 of the teaching week in both semester one andtwo; and in the case of summer examinations during weeks 1 and 2 in the following semester one.

The only opportunity for students to view their final exam paper is during the above sessions.Exam papers cannot be viewed by approaching individual staff outside of these times, exceptfor prospective graduands.Students completing their final courses and graduating may wish to see their final exam beforegraduation.Such cases are handled on a case-by-case basis with the individual staff member.The student will be given their exam paper and the suggested answers (or the marking guide)which they may view on site.

No exam papers may be taken out of the viewing room.No bags may be taken into the viewing room.At the time of viewing the exam papers, the Course Coordinator or their authorised delegatemust be available in the viewing room.

Appeal Against ResultsShould a student feel that the mark allocated does not reflect the standard of her/his work, thenshe/he is encouraged to discuss the matter with the course co-ordinator. In the event of course-based disputes not being resolved with the course co-ordinator, the student may appeal to therelevant Head of School and then the Associate Dean Academic of the BEL Faculty.

6.2 Other Policies and Guidelines

University Policies and Guidelines

Placement CoursesStudents on a placement course – also known as a work placement, internship, industry study,industry experience, clinical practice, clinical placement, practical work, practicum, fieldwork,teaching practice – should refer to the University policy, Placement Courses(https://ppl.app.uq.edu.au/content/3.10.04-placement-courses) for detailed information. Working with ChildrenStudents whose studies include a professional/work placement, internship, clinical practice, teachingpractice or other similar activity which involves them in regular contact with children should refer tothe University policy, Working with Children Check - "blue card"(http://ppl.app.uq.edu.au/content/1.60.07-working-children) to find out how to apply for a ‘bluecard’. Students with a DisabilityAny student with a disability who may require alternative academic arrangements, includingassessment, in the course/program is encouraged to seek advice at the commencement of thesemester from a Disability Advisor at Student Services. Refer to the University policy, Students witha Disability (Disability Action Plan) (https://ppl.app.uq.edu.au/content/3.50.08-alternative-academic-arrangements-students-disability) and to the policy on Special Arrangements forExaminations for Students with a Disability (https://ppl.app.uq.edu.au/content/3.50.09-arrangements-reasonable-adjustments-examinations-students-disability#Procedures).

While it is the responsibility of the relevant faculty to liaise with professional and registration bodiesregarding the acceptability of any adjustment to an academic program, the University Health Servicecan arrange appropriate advice and assistance on personal and public health issues.

Occupational Health and SafetyUndergraduate and Postgraduate Students should be familiar with the University policies onoccupational health and safety in the laboratory (https://ppl.app.uq.edu.au/content/2.30.14-occupational-health-and-safety-laboratory).

Other School of Business Guidelines

COMPUTING FACILITIESCourses offered by the School of Business extensively utilise the internet and other computerfacilities. Students should be familiar with these resources prior to undertaking a course. AskIT,available through the University of Queensland Library, offers computing help and training free toUQ students. Contact the AskIT Desk, Level 2 Duhig Bldg at St Lucia for further details.

Learning Summary

Below is a table showing the relationship between the learning objectives for this course and the broadergraduate attributes developed, the learning activities used to develop each objective and the assessmenttask used to assess each objective.

Learning Objectives

After successfully completing this course you should be able to:

1 Analyse whether a proposed corporate transaction is in the best interests of the firm'sshareholders.2 Estimate a firm's weighted average cost of capital under classical and imputationsystems; and analyse the relationship between capital structure, the cost of capital andvalue.3 Perform a discounted cash flow valuation and analyse its sensitivity to alternativeassumptions underlying its cash flows and discount rate.4 Estimate the impact on a firm's cash flows from implementing a risk management policyusing forwards, futures and options contracts; and estimate the intrinsic value of thosecontracts.5 Identify real options which are likely to affect firm value and perform a real optionsvaluation.6 Determine the ways to finance projects

Assessment & Learning Activities

Learning Objectives

1 2 3 4 5 6

Learning Activities

Review of Capital Budgeting (Lecture)

Cost of Capital (Lecture)

Financial Options (Lecture)

Investment projects as real options (Lecture)

Capital Structure Irrevance (Lecture)

Capital structure in a world with Taxes (Lecture)

Mid-Semester Test (Exam)

Capital structure in an Imperfect World (Lecture)

Payout Policy (Lecture)

Guest Lecture (Lecture)

Raising Capital I (Lecture)

Raising Capital II: (Lecture)

Review Lecture (Lecture)

Assessment Tasks

Mid-semester exam

Final exam

Graduate Attributes

Successfully completing this course will contribute to the recognition of your attainment of thefollowing UQ (Undergrad Pass) graduate attributes:

Learning Objectives

1 2 3 4 5 6

Graduate Attributes

A IN-DEPTH KNOWLEDGE OF THE FIELD OF STUDY

A1. A comprehensive and well-founded knowledge in the field of

study.

A4. An understanding of how other disciplines relate to the field ofstudy.

A5. An international perspective on the field of study.

B EFFECTIVE COMMUNICATION

B1. The ability to collect, analyse and organise information and ideasand to convey those ideas clearly and fluently, in both written andspoken forms.

B2. The ability to interact effectively with others in order to worktowards a common outcome.

B3. The ability to select and use the appropriate level, style andmeans of communication.

B4. The ability to engage effectively and appropriately withinformation and communication technologies.

C INDEPENDENCE AND CREATIVITY

C1. The ability to work and learn independently.

C3. The ability to generate ideas and adapt innovatively to changingenvironments.

C4. The ability to identify problems, create solutions, innovate andimprove current practices.

D CRITICAL JUDGEMENT

D1. The ability to define and analyse problems.

D2. The ability to apply critical reasoning to issues throughindependent thought and informed judgement.

D3. The ability to evaluate opinions, make decisions and to reflectcritically on the justifications for decisions.

E ETHICAL AND SOCIAL UNDERSTANDING

E1. An understanding of social and civic responsibility.

E2. An appreciation of the philosophical and social contexts of adiscipline.

E4. A knowledge and respect of ethics and ethical standards inrelation to a major area of study.

E5. A knowledge of other cultures and times and an appreciation ofcultural diversity.

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