Course Title: Financial Decision Making

Part A: Course Overview

Course Title: Financial Decision Making

Credit Points: 12

Terms

Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

BAFI1100

City Campus

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Sem 1 2006,
Sem 2 2006,
Sem 1 2007,
Sem 2 2007,
Sem 1 2008,
Sem 2 2008,
Sem 1 2009,
Sem 2 2009,
Sem 1 2010,
Sem 2 2010,
Sem 1 2011,
Sem 2 2011,
Sem 1 2012,
Sem 2 2012,
Sem 1 2013,
Sem 1 2014,
Sem 2 2014,
Sem 1 2015,
Sem 2 2015,
Sem 1 2016,
Sem 2 2016,
Sem 1 2017,
Sem 2 2017,
Sem 1 2018,
Sem 2 2018

Course Coordinator: Professor Terrence Hallahan

Course Coordinator Phone: n/a

Course Coordinator Email: terry.hallahan@rmit.edu.au

Course Coordinator Location: Level 10, Building 80

Course Coordinator Availability: By appointment


Pre-requisite Courses and Assumed Knowledge and Capabilities

None


Course Description

This course provides you with the key knowledge and skills required for financial management linking together strategic decision making concepts with day-to-day management decisions. The course adopts a practical approach using examples taken from Australian companies as well as large international companies. It equips you with techniques and skills that enable you to objectively analyse and evaluate alternatives from a solid theoretical base.

This course embraces the three key decisions confronting business: The Investment Decision, The Financing Decision and The Working Capital Decision. 


Objectives/Learning Outcomes/Capability Development

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On successful completion of this unit you will be able to:

CLO1: Appraise financial decision-making theories and practices and apply them to real world financing decisions
CLO2: Identify appropriate models to value equity, debt, capital and the firm as a whole.
CLO3: Compare the advantages and disadvantages of the most commonly used methods to evaluate investment strategy. 
CLO4: Differentiate between the various costs of capital and calculate these costs.
CLO5: Assess the significance of capital structure and examine its importance in decision making.
CLO6: Identify the impact of dividend policy (as it applies to firms) and prescribe ways to overcome shareholders’ diverse requirements.
CLO7: Describe the importance of liquidity management in the context of the risk return trade-off together with operational strategies.


Overview of Learning Activities

In this course you will be encouraged to be an active learner. Your learning will be supported through various in-class and online activities comprising individual and group work. These may include quizzes; simulations, assignments; prescribed readings; sourcing, researching and analysing specific information; solving problems; conducting presentations; producing written work and collaborating with peers on set tasks or projects. 


Overview of Learning Resources

(1) You will be advised of the recommended text for this course and other reading materials upon enrolment.
(2) Through myRMIT Studies Course Site you will have access to a detailed teaching schedule, assessment requirements, lecture notes, and relevant internet links.
(3) 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.


Overview of Assessment

The assessment alignment list below shows the assessment tasks against the learning outcomes they develop.

Assessment Task 1: 30%
Linked CLOs: 1, 2, 3
Assessment Task 2: 20%
Linked CLOs: 1, 2, 3, 4, 5, 6
Final Examination: 50%
Linked CLOs: 1, 2, 3, 4, 5, 6, 7

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.