Course Title: Financial Decision Making

Part A: Course Overview

Course Title: Financial Decision Making

Credit Points: 12.00


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 2 2017,
Sem 1 2019,
Sem 2 2019,
Sem 1 2020,
Sem 2 2020,
Sem 1 2021,
Sem 2 2021,
Sem 1 2022,
Sem 2 2022,
Sem 1 2023,
Sem 2 2023,
Sem 1 2024


Open Learning Australia

Non Award

625H Economics, Finance and Marketing

Distance / Correspondence


Course Coordinator: Tim Kooijmans

Course Coordinator Phone: +61 3 9925 9727

Course Coordinator Email:

Course Coordinator Location: City Campus Melbourne

Course Coordinator Availability: By appointment via email

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 unit you will be able to:

CLO1: Appraise financial decision-making theories and practices and apply them to real world financing decisions.

CLO2: Explain the characteristics and dynamics of financial markets and their role in managing financial risks.

CLO3: Apply the principles and techniques of the time value of money in financial decision making.

CLO4: Identify appropriate models to value equity, debt, capital and the firm as a whole.

CLO5: Compare the advantages and disadvantages of the most commonly used methods to evaluate investments strategy in real assets and apply those methods.

CLO6: Differentiate between the various costs of capital and calculate these costs.

CLO7: Assess the significance of capital structure and dividend policy and examine their importance in decision making.

CLO8: Describe the importance of liquidity management in the context of the risk return trade-off together with operational strategies.

CLO9: Apply financial decision-making techniques in the context of business growth and strategic financial planning. 

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. Visit the RMIT library website for further details. Assistance is available online via our chat and email services, face to face at our campus libraries or via the telephone on (03) 9925 2020.

Overview of Assessment

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

Assessment Task 1: 20%
Linked CLOs: 1, 2, 3, 4, 6

Assessment Task 2: 40%
Linked CLOs: 1, 2, 3, 4, 5, 6, 7, 8, 9

Assessment Task 3: 40%
Linked CLOs: 1, 2, 3, 4, 5, 6, 7, 8, 9

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.