The subject is designed to equip students with the strategic management, practical and personal skills necessary to work successfully in a highly competitive global environment. Management of any business requires a thorough grounding in methods of business finance. This subject will introduce the student to the various financial instruments, institutions and markets that form a part of the Australian economy and the role they play, through globalisation in the world economy. A thorough grounding in the mathematics of finance will also assist the student to better understand the intricacies of the financial sector.
The aim of this subject is to provide an introduction to the financial sector of the economy and to the mathematics of finance. Students will be introduced to a wide range of financial instruments and the methods of valuing them.
Teaching and Learning Strategy
The subject will use formal lectures and tutorials to assist the students to become competent in theory of finance and in the application of the various financial instruments.
Identify the functions served by financial markets and define the main classes of such markets.
Describe the role and importance of commercial banks and that of non-bank financial institutions in the global financial system.
Apply the concepts of mathematics and finance to valuing a range of financial instruments requiring discount security, compound interest and annuity application in the domestic and international market.
Evaluate and reflect on the relevance of the finance theories covered, to that of real world financial events.
Describe the different funding options available to businesses and governments and how the appropriate
financial instruments could be selected.
Exams will take place in weeks 12 & 13. Please refer to the official Exam Timetable for further information.
The subject requires the use of a scientific calculator. We recommend (for their ease of use and for their natural display screen and relatively low cost): Casio fx-82AU Canon F-717SGA
On-line quizzes – calculation/techniques. There will be 3 online quizzes relating to tutorial exercises (techniques), which must be completed prior to the preset deadline. An extension is seldom granted and is subject to lecturer approval and to be completed based on the terms and conditions which will be set by the lecturer. In most cases Moodle will award a score immediately following submission. The attempt with the highest score will be used for assessment purposes. When completing the quizzes only enter the final calculated answer rounded to 2 decimal places. Please do not include any symbols as part of your final answers, only numerical.
On-line quizzes – theory/elements. There will be 1 online quiz related to element or theory material. This quiz is a timed quiz and can only be attempted once. The quiz carries a weighing of 10% and will allow the students to gauge their understanding and progress in relations to the theory and identify areas of strength and weakness.
Journal of article reviews The written journal article review will encourage students to read widely and to recognise articles related to theory. The review will require the student to evaluate the piece and identify relationship to theory. The review will help demonstrate that the student not only has understood the topic area but is able to evaluate it in relation to their understanding of various theory topic areas covered in the lectures.
Final Examination The final exam is a closed book exam of a two hours duration and is weighted at 50% of the total marks for the subject. The exam has a pass requirement.