Corporate Finance and Value Creation
Overview
This unit enables students to focus on the principles and practices of corporate finance and their role in creating and sustaining firm value. It is designed to develop a clear understanding of how investment, financing, and dividend decisions are made within a corporate setting, and how these decisions contribute to long term value creation. The unit aims to build practical skills in applying financial theory, quantitative analysis, and financial data to evaluate investment opportunities and financing choices. In doing so, it enhances students’ ability to exercise informed judgements and take effective, ethical, and timely actions regarding the acquisition and allocation of resources in a complex and dynamic corporate environment
Unit delivered online
Requisites
ACC10007 Financial Information for Decision Making
AND
75 Credit Points
Replaces
FIN20014 Financial Management
Equivalent
FIN20014 Financial Management
30-May-2027
31-October-2027
Unit learning outcomes
Students who successfully complete this unit will be able to:
- Analyse the fundamentals of corporate finance, grounded in underlying theoretical principles, and how those principles are applied to value creation
- Recommend logical solutions to corporate finance and value creation problems that are fit for purpose and be cognisant of the impact of financial decisions on firms and their long-term value.Enter unit learning outcome
- Communicate a range of arguments in the corporate finance discipline appropriate to the audience, through a variety of communication media
- Demonstrate independent capability to apply theoretical understanding in analysing the challenges related to corporate finance decision-making and value creation.
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
On-campus Class |
2 | 12 weeks | 24 |
| Online Lecture (asynchronous) | 1 | 12 weeks | 12 |
| Unspecified Activities Independent Learning | 9.5 | 12 weeks | 114 |
| Total | 150 |
Swinburne Online
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
Online Directed Online Learning and Independent Learning |
12.5 | 12 weeks | 150 |
| Total | 150 |
Assessment
| Type | Task | Weighting | ULOs |
|---|---|---|---|
| Assignment | Individual | 40% | 1,2 |
| Report and Presentation | Individual | 50% | 3,4 |
| Test | Individual | 30% | 2,4 |
Content
- An introduction to corporate financial management
- Dividend Policy
- The time value of money
- Valuing shares and bonds
- Corporate Governance
- Capital budgeting, NPV, making capital investment decisions
- Risk and return, capital asset pricing model
- Weighted average cost of capital
- Financial leverage and capital structure policy
- Raising Capital
- Investment appraisal under risk and uncertainty
- Investment decisions - lease or buy, asset replacement and capital rationing
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.