Course Title: Business Finance
Part A: Course Overview
Course Title: Business Finance
Credit Points: 12
Course Coordinator: Dr. Nirav Parikh
Course Coordinator Phone: +61 3 9925 1680
Course Coordinator Email: firstname.lastname@example.org
Course Coordinator Location: Melbourne City Campus Building 80
Course Coordinator Availability: Please check with course coordinator
Pre-requisite Courses and Assumed Knowledge and Capabilities
Business Statistics 1 (ECON1030) or an equivalent offering.
The theory of finance stems from the broad area of applied economics. Over the past thirty or so years extensive research and theoretical developments have resulted in the emergence of this discipline as a science in its own right. Today, the theory of finance is a field that equips the individual with techniques and skills that ensure the objective analysis and evaluation of alternatives, resulting in effective financial decision-making. These techniques and skills are applicable in a number of sectors of our economy, namely financial markets (including financial products such as derivative instruments), financial institutions and the financial management of companies.
The theory of finance plays a significant role in the area of business, or corporate, finance. The effective financial management of firms, large or small, private or publicly listed, is paramount for the wellbeing of any economy. However, not only does its importance lie in its benefit to the economy as a whole, but it is vital that financial managers are capable of developing sound financial policies for the benefit of the firm itself and its owners, the shareholders. Financial managers must have a sound framework that will provide the analytical tools to competently evaluate alternatives and make objective decisions both in the short term and in the long term. Investment options and financing choices must be analysed and assessed using techniques that have a solid theoretical base.
Business Finance provides an introduction to the fundamental concepts of finance and the key skills required for good financial management of corporations and companies, as well as for personal financial management. It introduces financial concepts and issues that provide the necessary guidelines to solve many corporate finance problems and covers some of the important theories in modern finance to provide a substantial grounding in the discipline, including in preparing students for more advanced studies in finance
Business Finance is a second year course and consequently is taught on the assumption that students have an understanding of the basic concepts, principles and analytic techniques found in the introductory courses in the fields of statistics and microeconomics.
Objectives/Learning Outcomes/Capability Development
On successful completion of this course you will be able to:
- Understand and apply the fundamental concepts of finance and the key skills required for good financial management of corporations and companies, and personal financial management.
- Understand financial concepts and issues that provide the necessary guidelines to solve corporate finance problems and to gain a substantial grounding in the discipline.
- Critically analyse and apply appropriate analysis and evaluation of alternatives that lead to effective financial decision-making.
- Develop sound financial policies to inform effective financial management of organisations that benefit key stakeholders.
- Analyse and evaluate investment options and financing choices to apply best practice business finance solutions.
Overview of Learning Activities
- Attendance at and note taking during lectures;
- Reading of and note taking from prescribed and recommended text books and other references;
- Attendance at tutorials and completion of questions; and
- Consultation with academic staff during scheduled hours as necessary.
As part of the course you are expected to remember what you have been taught, properly understand it, including understanding its real-world relevance, be able to apply it in academic and real-world settings, analyse and evaluate the outcomes of what you have applied and how you have done it, and generate improved solutions to achieve personal and corporate objectives You must also, as part of this process, reflect on your results so as to be able to contemplate, identify, and apply improved strategies to achieve high-level performance throughout your studies and into the future.
Overall, this course, in conjunction with the other finance courses you will study as part of your program, is designed to get you to think like a financier, meaning that as you encounter issues, problems, and situations in your academic, work and personal life you will assess them from the point of view of finance and use your skills in the area to come up with proper and effective solutions.
Overview of Learning Resources
Various learning resources are available online through myRMIT/Blackboard. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.
Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT library website.
Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.
Overview of Assessment
The assessment tasks, their weighting and the course learning outcomes to which they are aligned are as follows:
Assessment Task 1: 50%
Linked CLOs: 1, 2, 3, 4, 5
Final Examination: 50%
Linked CLOs: 1, 2, 3, 4, 5
Feedback will be provided throughout the semester in class and/or in online forums through individual and group feedback on practical exercises and by individual consultation.