Unit Outline

BFA503

Principles of Financial Management

Semester 1, 2024 - ECA

Roger Colbeck

Tasmanian School of Business & Economics (TSBE)

College of Business and Economics

CRICOS Provider Code: 00586B

Contact Details

Unit Coordinator

Roger Colbeck

Email: Roger.Colbeck@utas.edu.au

Contents

What is the Unit About?................................................................................................................................ 3

Unit Description............................................................................................................................................ 3

Intended Learning Outcomes................................................................................................................... 3

Requisites...................................................................................................................................................... 3

How will I be Assessed?................................................................................................................................ 4

Assessment schedule................................................................................................................................ 4

Assessment details..................................................................................................................................... 4

How your final result is determined........................................................................................................ 7

Submission of assignments..................................................................................................................... 7

Requests for extensions............................................................................................................................ 7

Late penalties................................................................................................................................................ 7

Review of results and appeals................................................................................................................. 7

Required Resources....................................................................................................................................... 8

Required reading materials....................................................................................................................... 8

Recommended reading materials............................................................................................................ 8

Other required resources........................................................................................................................... 8

Unit schedule.................................................................................................................................................... 9

AACSB Accreditation................................................................................................................................... 11

Sustainability.................................................................................................................................................. 11

What is the Unit About?

Unit Description

This unit introduces students to the major concepts and analytical tools used in the theory and practice of financial management within an Australian context. It is designed to provide students with an understanding of: the scope and nature of the finance function and its role within management; and the theory of finance and how it underpins the evaluation of investment, financing and dividend policies. This unit will also develop practical skills in the identification and analysis of financial problems.

Intended Learning Outcomes

As per the Assessment and Results Policy 1.3, your results will reflect your achievement against specified learning outcomes.

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

1.	Compare financial management concepts and evaluate alternatives to make financial risk and capital decisions.
2.	Critique financial decision-making in an Australian business.
3.	Justify financial decisions to a diverse audience.

Requisites

REQUISITE TYPE	REQUISITES
Anti-requisite (mutual excl)	BFA772-A AND BFA703 AND BFA728

How will I be Assessed?

For more detailed assessment information please see MyLO.

Assessment schedule

ASSESSMENT TASK #	ASSESSMENT TASK NAME	DATE DUE	WEIGHT	LINKS TO INTENDED LEARNING OUTCOMES
Assessment Task 1:	Online quiz	Week 5	20 %	LO1, LO2
Assessment Task 2:	Group case study and presentation	Week 10	40 %	LO2, LO3
Assessment Task 3:	Take-home exam	Exam Period	40 %	LO1, LO2, LO3

Assessment details

Assessment Task 1: Online quiz

Task Description:

The online quiz is an invigilated test using the Respondus Lockdown Browser on MyLO. This test includes both theoretical and numerical questions in the form of multiple-choice and short-answered questions. Multiple choice questions (MCQs) will test your understanding of different theories in corporate governance and time value of money while short-answered questions oriented around comparing theories and critiquing theories in a particular context.

Task Length:

75 minutes

Due Date:

Week 5

Weight:

20 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)

1	Explain key financial and accounting concepts	LO1
2	Critique financial data and calculations by referring to theory	LO1
3	Apply financial models, techniques, and formulae to business challenges	LO2

Assessment Task 2: Group case study and presentation

Task Description:

The case study analysis comprises of a written report and a video recording for oral presentation. The students will work in a team of four for this assessment task. Students will select a company from the list of ASX100 companies and write a report about different aspects of the financial management of that company (for example: working capital management, capital structure, dividend policy etc.) and integrate such analysis into exploring a recent decision on raising capital made by the company. The written report will be assessed as a group assessment.
In an oral presentation, students should present their own analysis based on the written report. Students should consider how the financing decision captured in the report might differ if there are any changes in one or more factors in that company's financial situation. This analysis must follow the suggestions from different theories included in the unit. The oral presentation will be assessed as an individual performance.

Task Length:

1,200 words report and 10 minutes oral presentation

Due Date:

Week 10

Weight:

40 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)

1	Apply financial models, techniques, and formulae to business challenges. (Group assessment)	LO2
2	Interpret financial information using theory (Individual assessment)	LO2
3	Critique financial analysis outcomes using theory (Individual assessment)	LO2
4	Extract financial data to address problem statements. (Group assessment)	LO3
5	Communicate financial decisions using academic language and referencing (Group and individual assessment)	LO3
6	Articulate a rationale for decision making to broad audiences (Group and individual assessment)	LO3

Assessment Task 3: Take-home exam

Task Description:

The take-home exam includes both theoretical and numerical questions in the form of practical questions (with sub-questions). The exam will test students capacity in comparing theories in explaining and critiquing a certain investment and financial decision as well as justifying their analysis by numerical presentation.

Task Length:

12 Hours

Due Date:

Exam Period

Weight:

40 %

CRITERION #

CRITERION

MEASURES INTENDED

LEARNING OUTCOME(S)

1	Explain key financial and accounting concepts	LO1
2	Compare financial concepts that inform decision-making	LO1
3	Apply financial models, techniques, and formulae to business challenges	LO2
4	Interpret financial information using theory	LO2
5	Critique financial analysis outcomes using theory	LO2
6	Articulate a rationale for decision making to broad audiences	LO3

How your final result is determined

To pass this unit, you need to demonstrate your attainment of each of the Intended Learning Outcomes, achieve a final unit grade of 50% or greater, and pass any hurdle tasks.

Submission of assignments

Where practicable, assignments should be submitted to an assignment submission folder in MYLO. You must submit assignments by the due date or receive a penalty (unless an extension of time has been approved by the Unit Coordinator). Students submitting any assignment in hard copy, or because of a practicum finalisation, must attach a student cover sheet and signed declaration for the submission to be accepted for marking.

Requests for extensions

If you are unable to submit an assessment task by the due date, you should apply for an extension.

A request for an extension should first be discussed with your Unit Coordinator or teaching support team where possible. A request for an extension must be submitted by the assessment due date, except where you can provide evidence it was not possible to do so. Typically, an application for an extension will be supported by documentary evidence: however, where it is not possible for you to provide evidence please contact your Unit Coordinator.

The Unit Coordinator must notify you of the outcome of an extension request within 3 working days of receiving the request.

Late penalties

Assignments submitted after the deadline will receive a late penalty of 5% of the original available mark for each calendar day (or part day) that the assignment is late. Late submissions will not be accepted more than 10 calendar days after the due date, or after assignments have been returned to other students on a scheduled date, whichever occurs first. Further information on Late Penalties can be found on the Assessments and Results Procedure.

Review of results and appeals

You are entitled to ask for a review of the marking and grading of your assessment task if there is an irregularity in the marking standards or an error in the process for determining the outcome of an assessment. Details on how to request a review of a mark for an assignment are outlined in the Review and Appeal of Academic Decisions Procedure.

Required Resources

Required reading materials

You will need the following text [available from the Co-op Bookshop]:

Graham J., Adam C., Gunasingham B., 2020, Corporate Finance, 3rd edn, Cengage.

Other required resources

In addition to the texts/software recommended above, you are also expected to be familiar with the key academic journals in the discipline from which useful insights may be derived. In particular, you are encouraged to review regularly the relevant papers that are published in:

Journal of Finance

Journal of Applied Corporate Finance

Accounting and Finance.

Financial management is a dynamic area. Students are therefore urged to follow current events and developments in finance in the press. This includes reading the following periodical regularly (look for special student offers):

The Australian Financial Review (www.afr.com),

The Economist (www.economist.com),

The Financial Times (www.ft.com),

The Wall Street Journal (www.wsj.com),

UTAS Library: DatAnalysis Premium (Morningstar)

Unit schedule

Week	Date beginning	Topic/ Module/ Focus Area	Activities	Resources/ Readings/ Further Information
1	26 February	Financial Management – Role and Environment	Introductory workshop Self-study week: Week 1 materials	Textbook Chapter 1 (pp. 5-29)
2	4 March	Time value of money	Self-study week: Week 2 materials Workshop 1 (Covering Week 1&2 materials)	Textbook Chapter 3 (pp. 68-113 Workshop activities uploaded on Mylo
3	11 March	Risk and return	Self-study week: Week 3 materials	Textbook 6&7 (pp. 185-257)
4	18 March	Bond and share valuation	Self-study week: Week 4 materials Workshop 2 (Covering Week 3&4 materials)	Textbook Chapter 4&5 (pp. 121-184) Workshop activities uploaded on Mylo
5a	25 March	Capital budgeting process and decisions	Self-study week: Week 5 materials	Textbook Chapter 9 (pp. 304-349)
Mid-Semester Break: Thursday 28 March – Wednesday 3 April 2024
5b	4 April	Capital budgeting process and decisions	Self-study week: Week 5 materials Assessment Task 1 due 5^th April
6	8 April	Cash flow and capital budgeting, risk analysis	Self-study week: Week 6 materials Workshop 3 (Covering Week 5&6 materials)	Textbook Chapter 10 (pp. 350-382) Workshop activities uploaded on Mylo
7	15 April	Cost of capital	Self-study week: Week 7 materials	Textbook Chapter 11 (pp. 393-423)
8	22 April	Capital structure	Self-study week: Week 8 materials Workshop 4 (Covering Week 7&8 materials)	Textbook Chapter 13 (pp.467-500) Workshop activities uploaded on Mylo
9	29 April	Raising long-term financing	Self-study week: Week 9 materials	Textbook Chapter 12 (pp.431-466)
10	6 May	Dividends payout policy	Self-study week: Week 10 materials Workshop 5 (Covering Week 9&10 materials) Assessment task 2 due	Textbook Chapter 15 (pp. 535-564) Workshop activities uploaded on Mylo
11	13 May	Working capital management	Self-study week: Week 11 materials	Textbook Chapter 21&22 (pp. 731-789)
12	20 May	Options and risk management	Self-study week: Week 12 materials Workshop 6 (Covering Week 11&12 materials)	Textbook Chapter 19 (pp. 673-702) Workshop activities uploaded on Mylo
13	27 May	Revisions
Study Period: 3 June to 7 June
Exam Period: 8 June to 25 June

AACSB Accreditation

The Tasmanian School of Business and Economics (TSBE) gained initial Business Accreditation from the AACSB International (AACSB) in July 2021 – the lead program for accrediting business schools globally. AACSB seeks to connect educators, students, and business to achieve a common goal – to create the next generation of business leaders.

AACSB is the most reputable standard in business education and TSBE is now one of an elite group of the world’s business schools. By being an AACSB accredited School, TSBE has joined a global alliance committed to improve the quality of business education around the world, and to share the latest innovations in business education.

Gaining Business Accreditation with AACSB means that we have satisfied a multi-year process involving TSBE demonstrating our performance against the 15 accreditation standards.

TSBE has joined a select community of accredited business schools, with only five percent of all business schools globally accredited with AACSB. This will further enhance the reputation of TSBE, as well as the global recognition of your qualifications. To find out more about AACSB click here.

Sustainability

The College of Business and Economics is now a PRME (Principles for Responsible Management Education) signatory. We are committed to the six PRME values of Purpose, Values, Method, Research, Partnership and Dialogue and you will see in various units how we embed sustainability values in our teaching and research and the United Nations’ Sustainable Development Goals. Across all sustainable development goals, our university is ranked at 25 overall globally, and for Sustainable Development Goal 13 – Climate Action – UTAS is the number one university. For more information about PRME, click here.