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Last updated: 22 Feb 2015

BFF2631 Financial management - Semester 1, 2015.............................................................................1
Mode of Delivery..............................................................................................................................1
Workload requirements....................................................................................................................1
Additional workload requirements........................................................................................1
Unit Relationships........................................................................................................................................1
Prerequisites....................................................................................................................................1
Prohibitions......................................................................................................................................1
Chief Examiner(s)........................................................................................................................................1
Campus Lecturer(s).....................................................................................................................................2
Caulfield...........................................................................................................................................2
Tutor(s)........................................................................................................................................................2
Caulfield...........................................................................................................................................2
Your feedback to Us....................................................................................................................................3
Previous Student Evaluations of this Unit....................................................................................................3
Academic Overview...................................................................................................................................4
Learning Outcomes.........................................................................................................................4
Unit Schedule.............................................................................................................................................5
Teaching Approach..........................................................................................................................5
Assessment Summary.....................................................................................................................6
Hurdle Requirements...........................................................................................................6
Second marking...................................................................................................................7
Return of final marks............................................................................................................7
Exam viewing.......................................................................................................................7
Assessment criteria..............................................................................................................7
Assessment Requirements......................................................................................................................8
Assessment Tasks...........................................................................................................................8
Assessment task 1...............................................................................................................8
Assessment task 2...............................................................................................................9
Assessment task 3...............................................................................................................9
Examination(s)...........................................................................................................................................10
Examination 1................................................................................................................................10
Learning resources....................................................................................................................................10
Feedback to you........................................................................................................................................11
Referencing requirements.........................................................................................................................11
Assignment submission.............................................................................................................................11
Online submission.........................................................................................................................11
Required Resources..................................................................................................................................11
Prescribed text(s) and readings.....................................................................................................12
Other Information....................................................................................................................................13
Policies..........................................................................................................................................13
Graduate Attributes Policy.................................................................................................13
Student Charter.........................................................................................................................................13
Student services........................................................................................................................................13
Monash University Library.........................................................................................................................13
Moodle 2....................................................................................................................................................13
Disability Liaison Unit................................................................................................................................14

Time value of money, theory of valuation, capital budgeting, portfolio theory and the capital asset pricing model, dividend policy, capital structure and the efficient market hypothesis.
Caulfield (Day)
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
This is a six credit point unit with three hours class contact per week over 12 teaching weeks. It is expected that you will spend, on average, nine hours in self-directed study each week, in addition to the three hours of class contact. Self-directed study for a particular unit may exceed nine hours during weeks preceding an in-semester test, submission of a major assignment or final examination.
Students must have passed one of the following before undertaking this unit: AFF1000, ACF1000,
AFF1110 (pre 2009), ACP1000, AFF2631or AFP1000.
AFC2140, BFC2140, AFG2631, BFG2631, AFP2631, BFP2631, AFW2631, BFW2631, AFW3044,
AFF2631
Dr Zoltan Murgulov (First semester)
Dr Manapon Limkriangkrai (Second semester)
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BFF2631 Financial management - Semester 1, 2015
Dr Manapon Limkriangkrai
Campus: Clayton
Phone: +61 3 990 58436
Email: Manapon.Limkriangkrai@monash.edu
Contact hours: TBA
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Zoltan Murgulov (First semester)
Contact hours: TBA
Miss Angel Zhong
Campus: Clayton
Email: Angel.Zhong@monash.edu
Contact hours: TBA
Dr Amale Scally
Campus: Caulfield
Email: Amale.Scally@monash.edu
Contact hours: TBA
Mr Mardy Chiah
Campus: Clayton
Email: Mardy.Chiah@monash.edu
Contact hours: TBA
Mr Jason Tian
Campus: Clayton
Email: Jason.Tian@monash.edu
Contact hours: TBA
Ms Amanda Nguyen
Campus: Caulfield
Email: Amanda.Nguyen@monash.edu
Contact hours: TBA
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Man (Amanda) Li
Contact hours: TBA
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BFF2631 Financial management - Semester 1, 2015
Mr Mohan Raghavachari
Campus: Caulfield
Email: Mohan.Raghavachari@monash.edu
Contact hours: TBA
Neeru Chaudhary
Contact hours: TBA
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
Student feedback has highlighted the following strength(s) in this unit: The material discussed in lectures provides a clear and general introduction to business finance with many of the ideas and skill sets developed applicable in real life.
Student feedback has also contributed to continuous improvements, including: the implementation of online testing with instantaneous feedback and a very quick turn-around of mid-semester test papers (1 week) with detailed feedback provided in the tutorials.
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
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The learning goals associated with this unit are to:
1. apply the concept of the time value of money and other project evaluation techniques
2. explain and apply portfolio theory and the capital asset pricing model
3. measure a firm's cost of capital
4. describe dividend policy and its relevance to the value of a firm
5. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with financial management and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFF2631.
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Week
0 Orientation week
Activities
1 Introduction to business finance and financial mathematics I (Chs. 5, 6)
2 Financial mathematics II (Chs. 5, 6)
3 Capital budgeting I (Ch. 11)
4 Capital budgeting II (Ch. 12)
5 Valuation of bonds and shares (Chs. 8, 9)
6 Risk and return (Ch.7)
7 In-semester test
8 Portfolio theory and CAPM (Ch.7)
9 Market efficiency (Ch.10 - Brailsford et al.)
10 Cost of capital (Ch.13)
11 Capital structure (Ch.16)
12 Dividend policy (Ch.17)
SWOT VAC
Examination period
Assessment
No formal assessment or activities are undertaken in week 0
Workshop 1: Introduction to business finance
Workshop 2: Financial mathematics I
Workshop 3: Financial mathematics II
Workshop 4: Capital budgeting I
Workshop 4: Capital budgeting II
Workshop 6: Valuation of bonds and shares
In-semester test and Workshop 7: Risk and return
Workshop 8: Review of In-semester test questions
Workshop 9: Portfolio theory and CAPM
Trading simulation and Workshop 10:
Market efficiency
Workshop 11: Cost of capital
Workshop 12: Capital structure and
Dividend policy
No formal assessment is undertaken
SWOT VAC
LINK to Assessment Policy: http://policy.monash.edu.au/policy-bank/ academic/education/assessment/ assessment-in-coursework-policy.html
This unit will be taught as a two-hour lecture and a one hour tutorial each week for 12 weeks. There will also be a one hour trading simulation that you are required to attend in teaching week 10. You are expected to attend all lectures and tutorials as well as this compulsory trading simulation in either H131 or H404 (dependent upon which STARLab you allocate yourself into).
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.
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Unit Schedule
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 such as past examination papers and model answers. These resources will enable you to develop a mastery of the topics covered by the unit.
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.
Within semester assessment: 30%
Examination: 70%
Assessment
Task
Tutorial participation
In-class test
Trading simulation
Examination 1
Value
5% tutorial each week
Due Date
20% In 'allocated' lecture - teaching week 7
5% Teaching Week 10 (note that enrolling in a STARLab session needs to be completed in weeks 1 through 3).
70% To be advised
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 30% of the assessment regime is allocated to in-semester assessment and 70% to the final 3-hour examination.
A student enrolled in this unit might achieve 30 out of 30 for their in-semester assessment and 20 out of
70 for the final examination. While the overall total of these marks is 50P the final examination mark is
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Unit Schedule below the required 50% of the marks in the final exam. Consequently a mark of 48N will be determined by the faculty's Board of Examiners on the recommendation of the unit's Chief Examiner.
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.
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.
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.
Feedback on student performance in examinations and other end-of-semester assessment is required.
The feedback should be in accordance with the University's procedures on Unit Assessment. Details of the examination script viewing arrangements set down by the Department of Banking and Finance is available at www.buseco.monash.edu.au/baf/student/exam-view/.
Assessment Criteria Grading Descriptors available at: http://www.buseco.monash.edu.au/esg/agu/policies/assessment.html.
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•
Title:
Tutorial participation
Due date: tutorial each week
Details of task:
Tutors will grade students based on the level of preparation and participation during the weekly tutorials. Please make sure that you attend your allocated tutorial (via Allocate+) throughout the semester and note that attendance itself is not considered participation.
Weighting/Value:
5%
Estimated return date:
Marks will be made available to students via Moodle after Week 12.
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
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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.
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
1
0
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.
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.
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
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Assessment Requirements of debate.
NB. these guidelines are reproduced here courtesy of Prof. John Tyler (Brown University) and Prof. Richard Murnane (Harvard University). Prof Tyler and Prof Murnane in turn reproduced these guidelines from another source. The original attribution for these guidelines is unknown.
Learning objectives assessed:
This assessment task is designed to test your achievement of learning objectives 1 to 5.
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Title:
In-class test
Due date:
In 'allocated' lecture - teaching week 7
Details of task:
This will be a 90 minute test written during your scheduled lecture in week 7.
The in-class test is a closed-book test and is one and a half hours duration, there is no reading time prior to test comencement. It will comprise of multiple choice and short answer questions. Calculators are permitted and highly recommended. Note that only
“approved” calculators may be used in the test. STUDENTS MUST SIT THE TEST IN
THE LECTURE IN WHICH THEY ARE ALLOCATED.
Materials examinable: Materials covered in lectures, tutorials and prescribed reading in weeks 1–5.
Weighting/Value:
20%
Estimated return date:
Students will be able to view their test paper and result in tutorials during their allocated tutorials in Week 8. Students may not keep their test paper. All test papers will be retained by the tutor. Please note that the Faculty exam viewing policy will be applied, that is, no writing is allowed during the viewing session.
Additional information:
If an application for special consideration is received within two full days after the in-semester test weighted at more than 10 per cent of the final mark; and the application is approved by the Chief Examiner, then the student will be offered a make-up test prior to the examination period.
•
Title:
Trading simulation
Due date:
Teaching Week 10 (note that enrolling in a STARLab session needs to be completed in weeks 1 through 3).
Details of task:
The trading simulation will be run in teaching week 10. Students will be required to participate in the trading simulation involving the buying and selling of securities in a market situation. Students will be provided basic instructions (week 4 lecture) and practice
(STAR Lab training in week 9) in the use of financial market trading software (in a very simple configuration) with the objective of experiencing the dynamics of trading in a market. The idea is to expose students to the dynamics of price formation in markets using a simulation. Detailed instructions will be made available and discussed in class in
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Assessment Requirements teaching week 4*. A practice game will be available online - instructions on how to access this will be made available in class during week 4 lecture - with the assessed simulations taking place in week 10.
You are required to self-enrol in a STARLab session to complete your assessment.
Allocate+ will be open until the end of week 3. It is your responsibility to ensure you enrol in such a session while allocate+ is open. Any student who has not enrolled in a STARLab trading game session by the end of week 3 will automatically be allocated.
*Be advised if you miss this class it is your responsibility to obtain information from class mates and or the podcast available through Moodle.
Weighting/Value:
5%
Estimated return date:
Marks will be made available to students on Moodle by the end of teaching week 12.
•
Weighting:
70%
Length:
3 hours
Type (open/closed book):
Closed book
Electronic devices allowed in the exam:
The final examination will be a closed-book examination and approved calculators will be permitted.
Remarks:
Date and location:
The final examination will be held during the official examination period. Information about examination schedule can be accessed through my.monash portal.
Materials examinable:
The final examination may contain material covered in lectures, tutorials and the prescribed readings.
Criteria for assessment:
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).
Monash Library Unit Reading List (if applicable to the unit) http://readinglists.lib.monash.edu/index.html
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Assessment Requirements
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
• Other: Types of feedback you can expect to receive in this unit are: Informal feedback on progress in labs/tutes and Test results and feedback
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.
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.
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 Caulfield campus: Banking and Finance Enquiries Counter (Building H, Level 3). Please note that the Banking and Finance
Enquiries Counter is ONLY open between 2PM - 5PM.
Please note that worked examples in the lectures and tutorials will use SHARP EL-738
Business/Financial calculator; however, having any other brand and type of business/finacial calculator is acceptable and will enable you to follow these examples (make sure you also get a user's manual if buying a calculator second hand).
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Assessment Requirements
Parrino, R., Kidwell, D., Au-Yong, H.H., Dempsey, M., Morkel-Kingsbury, N., Ekanayake, S., Kofoed, J., and J. Murray. (2014). Fundamentals of corporate finance (2nd Ed.). Milton Qld: John Wiley and Sons
Australia Ltd ISBN 9780730305422
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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.
http://www.policy.monash.edu/policy-bank/academic/ education/management/monash-graduate-attributes-policy.html
www.opq.monash.edu.au/ep/student-charter/monash-university-student-charter.html
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
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.
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.
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Other Information
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.
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