BFC2140
Corporate finance
Unit Guide
Semester 2, 2015
Copyright © Monash University 2014. All rights reserved. Except as provided in the Copyright Act 1968,
this work may not be reproduced in any form without the written permission of the host Faculty and
School/Department.
The information contained in this unit guide is correct at time of publication. The University has the right
to change any of the elements contained in this document at any time.
Last updated: 20 Jul 2015
Table of Contents
BFC2140 Corporate finance - Semester 2, 2015.....................................................................................1
Mode of Delivery..............................................................................................................................1
Workload requirements....................................................................................................................1
Unit Relationships............................................................................................................................1
Prohibitions..........................................................................................................................1
Chief Examiner(s)........................................................................................................................................1
Campus Lecturer(s).....................................................................................................................................1
Clayton.............................................................................................................................................1
Your feedback to Us....................................................................................................................................2
Previous Student Evaluations of this Unit....................................................................................................2
Academic Overview...................................................................................................................................3
Learning Outcomes.........................................................................................................................3
Unit Schedule.............................................................................................................................................4
Teaching Approach..........................................................................................................................4
Assessment Summary.....................................................................................................................5
Hurdle Requirements...........................................................................................................5
Second marking...................................................................................................................5
Return of final marks............................................................................................................6
Exam viewing.......................................................................................................................6
Assessment criteria..............................................................................................................6
Assessment Requirements......................................................................................................................7
Assessment Tasks...........................................................................................................................7
Assessment task 1...............................................................................................................7
Assessment task 2...............................................................................................................8
Examination(s).............................................................................................................................................8
Examination 1..................................................................................................................................9
Learning resources......................................................................................................................................9
Feedback to you..........................................................................................................................................9
Referencing requirements...........................................................................................................................9
Assignment submission.............................................................................................................................10
Online submission.........................................................................................................................10
Required Resources..................................................................................................................................10
Prescribed text(s) and readings.....................................................................................................10
Technological Requirements.....................................................................................................................10
Other Information....................................................................................................................................11
Policies..........................................................................................................................................11
Graduate Attributes Policy.................................................................................................11
Student Charter.........................................................................................................................................11
Student services........................................................................................................................................11
Monash University Library.........................................................................................................................11
Moodle 2....................................................................................................................................................12
Disability Liaison Unit................................................................................................................................12
BFC2140 Corporate finance - Semester 2, 2015
The impact of financing and investment decisions on business enterprises, with particular focus on public
companies. Topics include the goals of the firm and investors, investment evaluation models, valuation
of equity and debt instruments, fixed interest securities, sources and types of available finance, issues in
risk and return, portfolio theory, asset pricing models, issues in capital structure and dividend policy, and
the efficiency of capital markets.
Mode of Delivery
Clayton (Day)
Workload requirements
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per
semester typically comprising a mixture of scheduled learning activities and independent study.
Independent study may include associated readings, assessment and preparation for scheduled
activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled
activities may include a combination of teacher directed learning, peer directed learning and online
engagement.
See also Unit timetable information
Unit Relationships
Prohibitions
AFF2631, BFF2631, AFG2631, BFG2631, AFW2631, BFB2631, BFP2631, BFW2631, AFW3044,
AFC2140
Chief Examiner(s)
Dr Hue Hwa Au Yong (First semester)
Dr YangYang Chen (Second semester)
Campus Lecturer(s)
Clayton
Dr Yangyang Chen
Contact hours: Lecture Weeks 1-9
Dr Jayasinghe Wickramanayake
Contact hours: Lecture Weeks 10-12
1
BFC2140 Corporate finance - Semester 2, 2015
Your feedback to Us
Monash is committed to excellence in education and regularly seeks feedback from students, employers
and staff. One of the key formal ways students have to provide feedback is through the Student
Evaluation of Teaching and Units (SETU) survey. The University’s student evaluation policy requires that
every unit is evaluated each year. Students are strongly encouraged to complete the surveys. The
feedback is anonymous and provides the Faculty with evidence of aspects that students are satisfied
and areas for improvement.
For more information on Monash’s educational strategy, see:
www.monash.edu.au/about/monash-directions/ and on student evaluations, see:
www.policy.monash.edu/policy-bank/academic/education/quality/student-evaluation-policy.html
Previous Student Evaluations of this Unit
Student feedback has highlighted the following strength(s) in this unit: Well organised and stimulating
unit materials. Student feedback has also contributed to continuous improvements, including: the grading
of tutorial preparation and participation to encourage participation in discussions at the weekly tutorials.
This has been effective in providing feedback to students on a continuous basis throughout the
semester. Go to Unit Evaluation Reports if you wish to view previous evaluations.
If you wish to view how previous students rated this unit, please go to
https://emuapps.monash.edu.au/unitevaluations/index.jsp
2
Academic Overview
Learning Outcomes
The learning goals associated with this unit are to:
1. evaluate investment options and value equity and debt instruments
2. explain portfolio theory and show how the theory can be extended to price risky assets
3. estimate the appropriate cost of capital for investment appraisal purposes
4. analyse issues determining capital structure and dividend policy
5. apply critical thinking, problem solving and presentation skills to individual and/or group activities
dealing with corporate finance and demonstrate in an individual summative assessment task the
acquisition of a comprehensive understanding of the topics covered by BFC2140.
3
Unit Schedule
Week
Activities
0
Assessment
No formal assessment or activities are
undertaken in week 0
1
Investors, firms and markets (Ch.1)
2
Financial mathematics (Chs. 5, 6)
3
Valuation of bonds and equities (Chs. 8, 9)
4
Project evaluation (1) (Ch.10)
5
Project evaluation (2) (Ch.11)
6
Project evaluation with risk (Ch.12)
7
In-semester test - during class time
8
Risk, valuation and investment (1) (Ch. 7)
9
Risk, valuation and investment (2) (Ch. 7)
10
Cost of capital (Ch. 13)
11
Capital structure (Ch.16)
12
Dividend policy (Ch.17)
In-Semester Test
SWOT VAC
No formal assessment is undertaken
SWOT VAC
Examination period
LINK to Assessment Policy:
http://policy.monash.edu.au/policy-bank/
academic/education/assessment/
assessment-in-coursework-policy.html
Teaching Approach
This unit will be taught as a two-hour lecture and a one-hour tutorial each week for 12 weeks. You are
expected to attend all lectures and tutorials.
The lectures will not cover every aspect of each topic listed in the Unit Schedule as you are expected to
acquire a comprehensive understanding by undertaking the prescribed and recommended reading and
by completing the week-by-week tutorial activities and other in-semester assessment tasks.
The tutorials provide an opportunity for you and your peers to discuss the current topic(s) and to
compare your completed assessment tasks with other students' work and/or model answers. While
tutorials provide an opportunity for you to demonstrate the application of your knowledge and skills there
is also an opportunity for you to ask the tutor to clarify your understanding of the topics and associated
concepts covered to date.
In general you are expected to spend two to three hours of self-directed study for each hour in class.
Some of this time should be devoted to discussions with other students. The benefit of such discussions
will be enhanced if you have completed relevant prescribed and recommended reading and/or started or
completed the current assessment task(s). The prescribed and recommended readings are listed in this
guide and on the unit's Moodle web-site. The Moodle web-site provides access to material like past
examination papers and model answers. These resources will enable you to develop a mastery of the
topics covered by the unit.
4
Unit Schedule
To ensure a high probability of successfully completing this unit, you need to manage your time and
studies in a systematic way. At a minimum this should involve:
• reading prescribed and selected recommended material prior to attending lectures;
• completing week-by-week tutorial activities tasks prior to attending tutorials;
• attempting relevant questions from past final examination papers and in-semester tests;
• discussions with past and present students; and
• revision of the semester's work during the SWOT-Vac and prior to the final examination.
Assessment Summary
Within semester assessment: 40%
Examination: 60%
Assessment Task
Value
Due Date
Preparation and participation 10%
continuous
In-semester test
30%
Clayton Campus: Week 7 (in class)
Examination 1
60%
To be advised
Hurdle Requirements
There is a hurdle requirement for this unit.
The learning outcomes of this unit require you to demonstrate a comprehensive understanding of the
topics covered in the unit. Hence the hurdle requirement for this unit requires that you must attain a mark
of at least 50% in the final examination. If you fail the unit solely because of failure to satisfy the hurdle
requirement, a mark of 48 will be determined by the faculty's Board of Examiners on the
recommendation of the unit's Chief Examiner.
The outcome from application of the hurdle requirement is often misunderstood by students who are
awarded 48N. For example, some students mistakenly believe that 48N means they failed the final
examination by two marks and that a second re-mark of their examination paper might find two extra
marks. Whereas 48N does not provide any indication of the mark attained in the final examination other
than a mark less than 50% was awarded.
The following example should make the application of the hurdle requirement clear. In this unit 40% of
the assessment regime is allocated to in-semester assessment and 60% to the final 3-hour examination.
A student enrolled in this unit might achieve 35 out of 40 for their in-semester assessment and 25 out of
60 for the final examination. While the overall total of these marks is 60C the final examination mark is
five marks below the required 50%. Consequently a mark of 48N will be determined by the faculty's
Board of Examiners on the recommendation of the unit's Chief Examiner.
Second marking
Where an assessment task is given a fail grade by an examiner, that piece of work will be marked again
by a second examiner who will independently evaluate the work, and consult with the first marker. No
student will be awarded a fail grade for an assessment task or unit without a second examiner confirming
the result.
5
Unit Schedule
Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark,
unless the total of such pieces exceeds 30% of the final mark.
Return of final marks
Faculty policy states that 'the final mark that a student receives for a unit will be determined by the Board
of Examiners on the recommendation of the Chief Examiner taking into account all aspects of
assessment'.
The final mark for this unit will be released by the Board of Examiners on the date nominated in the
Faculty Calendar. Student results will be accessible through the my.monash portal.
Exam viewing
Feedback on student performance in examinations and other end-of-semester assessment is required,
in accordance with the University's procedures on unit assessment. For more information, go to:
http://www.buseco.monash.edu.au/baf/student/exam-view/index.html.
Assessment criteria
Assessment Criteria Grading Descriptors available at:
http://www.policy.monash.edu/policy-bank/academic/education/assessment/
6
Assessment Requirements
Assessment Tasks
•
Assessment task 1
Title:
Preparation and participation
Due date:
continuous
Details of task:
Tutors will grade students based on the level of preparation and participation during the
weekly tutorials. Please note that attendance itself is not considered participation.
Weighting/Value:
10%
Estimated return date:
Marks will be made available to students via Moodle during Swot-Vac.
Criteria for marking:
The following guidelines will be followed when determining your preparation and
participation mark for each week.
MARK NATURE OF CONTRIBUTION: Preparation and participation
5
Outstanding contributor
The comments made by you revealed exceptional preparation and the
contribution provided a substantive foundation for furthering fruitful class
discussions. If you were absent from the class, the tutorial would have lacked
the desired student directed learning.
4
Good contributor
The comments made by you revealed thorough preparation and your
contribution provided some useful insight into the topic. At times you even lead
the class discussions. If you were absent from the class, the quality of student
initiated debate would have significantly diminished.
2–3
Standard contributor
The comments made by you revealed adequate preparation and at times your
contribution aided class discussions. However, your contribution was not
consistent. At times the comments you made were well argued and/or
persuasive, yet on other occasions they were unsubstantiated and/or illogical. If
you were absent from the class, the quality of the student initiated debate would
have suffered.
1
Poor contributor
You rarely contributed to class discussions, it is extremely difficult to assess your
level of preparation and the likely contribution you might have made to the class
discussions.
0
Non-contributor
The comments made by you revealed a lack of preparation and negatively
impacted upon class discussions. Additionally, your contributions failed to
provide a constructive lead to class discussions and invariably disrupted the flow
of debate.
Learning objectives assessed:
This assessment task is designed to test your achievement of learning objectives 1 to 5.
7
Assessment Requirements
•
Assessment task 2
Title:
In-semester test
Due date:
Clayton Campus: Week 7 (in class)
Details of task:
This will be a 1.5 hour test plus 5 minutes reading time. The in-semester test will cover
lecture materials up to the end of Week 5. Further details regarding the test will be
provided in lectures closer to the time. There is a requirement for the university to retain a
copy of the test until after results are finalised.
The test is closed book and only calculators identified with an “approved for use” will be
permitted. All other Electronic devices, such as mobile phones, are not permitted in tests
and examinations in this unit The calculator “approved for use” labels are available from
the Clayton campus: Accounting and Finance General Office (20 Chancellor's Walk, level
10).
Test conditions: During the test students must not have in their possession, a book,
notes, paper, electronic device/s (including smart watch), calculator (unless allowed by the
Chief Examiner), pencil case, mobile phone or other material/item which has not been
authorised for the test or specifically permitted–as noted on the test paper. Any material or
item on a student’s desk, chair or person will be deemed to be in their possession.
Students are reminded that possession of unauthorised materials, or attempting to cheat
or cheating in an examination or in any work required to be submitted for assessment is a
discipline offence under Part 7 of the Monash University (Council) Regulations.
Weighting/Value:
30%
Estimated return date:
Marks will be made available to students during tutorials in week 10.
Criteria for marking:
Overall, the work submitted for assessment will be graded in accord with the table
showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p. 6).
Learning objectives assessed:
This assessment task is designed to verify your achievement of learning objectives 1.
Additional information:
Request for special consideration
Where an application for special consideration http://www.monash.edu.au/exams/assets/docs/in-semester.pdf - has been submitted to
the Chief Examiner for consideration, no later than two university working days after the
date of an in-semester test (weighted at more than 10 per cent mark); and the application
approved, the Chief Examiner will have the option of setting an equivalent make-up test,
which would be undertaken prior to the examination period.
Students must not assume the outcome of an application for special consideration.
Examination(s)
8
Assessment Requirements
• Examination 1
Weighting:
60%
Length:
3 hours
Type (open/closed book):
Closed book
Electronic devices allowed in the exam:
Approved calculators will be permitted.
Remarks:
The final examination will be held during the official examination period. Information about
examination schedule can be accessed through my.monash portal.
All source materials, which are specified in the unit guide and on the unit's Moodle site,
are examinable. This includes prescribed reading and other source materials cited in
lectures, tutorials and assessment tasks.
Overall, the work submitted for assessment will be graded in accord with the Faculty
approved Grading Descriptors http://www.buseco.monash.edu.au/esg/agu/policies/grades-table.html.
Learning resources
Monash Library Unit Reading List (if applicable to the unit)
http://readinglists.lib.monash.edu/index.html
Feedback to you
Types of feedback you can expect to receive in this unit are:
• Informal feedback on progress in labs/tutes
• Test results and feedback
• Solutions to tutes, labs and assignments
Referencing requirements
Referencing requirements: Work submitted for assessment must be consistent with the guidelines set
down in the Q Manual, which is the faculty's student guide for producing quality work on time. Copies of
this manual can be purchased at the bookshop or accessed online at:
http://www.buseco.monash.edu.au/qmanual/qmanual.pdf
Marks may be deducted where in-text citations and/or the reference list is not consistent with the
American Psychological Association (APA) style, which is illustrated in the Q Manual
Academic integrity: In order to ensure the academic integrity of your submission and to deter others
from copying your work, your submission may be processed by text matching software such as Turnitin.
For additional information, the University's Student Academic Integrity Policy can be found at URL:
http://www.policy.monash.edu/policy-bank/academic/education/conduct/student-academic-integrity-policy.html
9
Assessment Requirements
Assignment submission
Online submission
If Electronic Submission has been approved for your unit, please submit your work via the learning
system for this unit, which you can access via links in the my.monash portal.
Required Resources
Virtual learning environment (VLE): Moodle
Material used in class together with other information of importance to you will be published online via
the unit’s Moodle site. In order to access information about this unit in Moodle you must be enrolled in
the unit and have a valid student account with authcate username and password. Moodle is accessed
through my.monash portal. When you log in to the portal you access Moodle in the "home page" by
clicking on the Moodle 2 link under "Online Systems".
Q Manual
Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which
is the faculty's student guide for producing quality work on time. Copies of this manual can be purchased
at the bookshop or accessed online.
Calculators
Electronic devices (including calculators) are not permitted in tests and examinations in this unit unless
identified with an "approved for use" label. These labels are available from Clayton campus: Banking and
Finance General Office (20 Chancellor's Walk, level 10).
Prescribed text(s) and readings
Parrino, R., Kidwell, D., Au Yong, H.H., Dempsey, M., Morkel-Kingsbury, N., Ekanayake, S., Kofoed, J.,
& Murray, J. (2014), Fundamentals of Corporate Finance, (Australasian 2nd ed.). Milton, Qld: John Wiley
Sons Australia.
Technological Requirements
Electronic devices (including calculators) are not permitted in tests and examinations in this unit unless
identified with an approved for use label.
These labels are available from:
• Clayton Campus: Banking and Finance General Office (Menzies Building, Level 10)
• Monash University Malaysia: Course Management Staff (building 6, level 4, room 9)
10
Other Information
Policies
Monash has educational policies, procedures and guidelines, which are designed to ensure that staff and
students are aware of the University’s academic standards, and to provide advice on how they might
uphold them. You can find Monash’s Education Policies at:
www.policy.monash.edu.au/policy-bank/academic/education/index.html
Key educational policies include:
• Student Academic Integrity Policy and Student Academic Integrity: Managing Plagiarism and
Collusion Procedures ;
• Assessment in Coursework Programs;
• Special Consideration;
• Grading Scale;
• Discipline: Student Policy;
• Academic Calendar and Semesters;
• Orientation and Transition; and
• Academic and Administrative Complaints and Grievances Policy.
Graduate Attributes Policy
http://www.policy.monash.edu/policy-bank/academic/
education/management/monash-graduate-attributes-policy.html
Student Charter
www.opq.monash.edu.au/ep/student-charter/monash-university-student-charter.html
Student services
The University provides many different kinds of support services for you. Contact your tutor if you need
advice and see the range of services available at http://www.monash.edu.au/students
You can also access important information from the Faculty of Business and Economics current students
page http://www.buseco.monash.edu.au/student/
Caulfield and Clayton students wishing to further develop English language skills in a fun group
environment can join a Conversational English Program. You can access these programs at
http://www.monash.edu/students/conversational-english/
Monash University Library
The Monash University Library provides a range of services, resources and programs that enable you to
save time and be more effective in your learning and research. Go to www.lib.monash.edu.au or the
library tab in my.monash portal for more information.
11
Other Information
Moodle 2
All unit and lecture materials, plus other information of importance to students, are available through the
virtual learning environment Moodle site. You can access Moodle via the my.monash portal.
Where to go for help
If you're stuck, confused or simply not sure how to approach Moodle, there are a number of Moodle
resources that you can tap into.
Disability Liaison Unit
Students who have a disability or medical condition are welcome to contact the Disability Liaison Unit to
discuss academic support services. Disability Liaison Officers (DLOs) visit all Victorian campuses on a
regular basis.
• Website: http://www.monash.edu/equity-diversity/disability/index.html
• Telephone: 03 9905 5704 to book an appointment with a DLO;
• Email: dlu@monash.edu
• Drop In: Equity and Diversity Centre, Level 1, Building 55, Clayton Campus.
12