Course Title: Advanced Corporate Finance
Part A: Course Overview
Course ID: 005017
Course Title: Advanced Corporate Finance
Credit Points: 16
Course Code |
Campus |
Career |
School |
Learning Mode |
Teaching Period(s) |
BAFI1081 |
City Campus |
Postgraduate |
625H Economics, Finance & Marketing |
Face-to-Face |
Sem 1 2006,
Sem 2 2006 |
Course Coordinator: Tom Josev
Course Coordinator Phone: +61 3 9925-5858
Course Coordinator Email: tom.josev@rmit.edu.au
Course Coordinator Location: 108.12
Pre-requisite Courses and Assumed Knowledge and Capabilities
BAFI 1059 Managerial Finance ECON 1095 Quant Methods in Finance
Course Description
This course introduces students to the theoretical and practical framework of corporate finance. In doing so, it emphasises the importance of using theory to solve practical financial problems.
The use of the theoretical framework will equip financial managers with the ability to ask the right questions in their rapidly changing and often unstructured work environment. Not only will students/financial managers be able to identify problems that need solving but also those problems that do not.
In order for the student to appreciate the relevance of the theories derived, the student will evaluate the empirical evidence to determine the utility of the theory to the work environment. It is crucial to the course that the student develops a capacity to analyse, interpret and evaluate existing empirical research. The skills acquired in the course Financial Econometrics will be utilised in this unit.
Objectives/Learning Outcomes/Capability Development
At the conclusion of this course, you should be able to:
(a) understand and be familiar with the theoretical and practical framework
of corporate finance;
(b) evaluate empirical evidence relating to the theory of corporate finance;
(c) develop a capacity to analyse, interpret and evaluate existing empirical
research;
(d) apply the practical skills acquired in this course to practice.
To achieve the objectives listed above this course requires you to participate in various learning activities. These activities comprise the student in actively participating in the class. This will involve the student in adapting his/her learning methodology to the course’s needs. The experiences can be ‘broken’ down to a better understanding of,
(a) Learning Methodology
This course is a self directed learning unit in which the student takes the
responsibility for his/her own learning.
(b) Role of Class/Lecture
The purpose of the class/lecture is to identify and explore issues to be resolved in
the topic under study. The student is expected to generate his/her own notes given :
(a) the issues identified by the lecturer.
(b) the prescribed ( and additional) reading
(c) the issues of concern identified by the student
Overview of Learning Activities
The following modules will be covered in this course,
Module 1. Market Efficiency, Corporate Financial Announcements and other Signals
Module 2. Option Pricing Model and its Application(s) to Corporate Finance.
Module 3. The Market for Corporate Control and Corporate Restructuring
Module 4. Agency Theory, Executive Compensation and Financial Contracting
Module 5. Corporate Financial Strategy
Overview of Learning Resources
Students should read the local business paper e.g. Australian Financial Review and/or Asian Wall Street Journal. Students should also familairise themselves with the RMIT eLibrary.
Overview of Assessment
The assessment tasks you are required to complete are:
Mid-Semester Test 30%
Final Test 70%
Total 100%
More detail on the mid-semester test will be given in class.