Course Title: Financial Decision Making

Part A: Course Overview

Course Title: Financial Decision Making

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance and Marketing


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

Course Coordinator: Mike Code

Course Coordinator Phone: n/a

Course Coordinator Email:

Course Coordinator Location: Level 10, Building 80

Course Coordinator Availability: By appointment

Pre-requisite Courses and Assumed Knowledge and Capabilities


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


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

  1. Demonstrate a broad, critical and practical understanding of financial decision making theories and practices in the real world
  2. Identify valuation models and use them for equity, debt instruments and the firm as a whole
  3. Compare the advantages and disadvantages of the most commonly used methods of investment evaluation
  4. Differentiate between the various costs of capital and calculate these costs
  5. Recognise the significance of capital structure and examine its importance in decision making
  6. Recognise the impact of dividend policy as it applies to firms

Overview of Learning Activities

The course will be delivered using a combination of lectures and online resources, and provide an amount of time that will give you an opportunity to discuss problems and questions relating to the course material.

To facilitate your achievement of learning outcomes, the course requires you to participate in various learning activities:
(1) attendance at and note-taking during scheduled lectures
(2) active participation in lectures and workshops
(3) optional consultation with academic staff
(4) completion of assessment tasks

Overview of Learning Resources

(1) You will be advised of the prescribed 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

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.