Visit ECU Homepage
This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.
Corporate finance involves the financial management of business entities. This unit investigates how managers make investment, financing, and dividend decisions. Investment decisions are based on discounted cash flow techniques and their extensions. These extensions enable us to study a wide range of problems including: new investments, investments with unequal terms, optimal replacement, and project abandonment. Capital structure and dividend decisions are based upon the seminal works of Modigliani and Miller. In the first instance we see that simplifying assumptions about corporate taxes lead to naive conclusions about both corporate financing (primarily debt and equity) and dividend policy. As these simplifying assumptions are removed to better align with real-world conditions, the conclusions move from naive to controversial. The current global business environment is complex. To best deal with this complexity, business managers have discovered that flexibility (of approach, of products, and resources) is extremely valuable. Real option theory is introduced in this unit as an emerging technique to value this flexibility.
Students must pass 1 units from ECF1120
On completion of this unit students should be able to:
On-campus students attend three hour classes weekly. This can comprise of lecture and tutorial components. Off-campus students are supplied with unit materials accessed via Blackboard. Regular online access and participation on the discussion board is required.
GS1 GRADING SCHEMA 1 Used for standard coursework units
Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.
| Type | Description | Value |
|---|---|---|
| Participation | Tutorial Preparation and Participation | 10% |
| Exercise | Practice sets | 10% |
| Assignment | Assignment | 20% |
| Examination ^ | Final Examination * | 60% |
| Type | Description | Value |
|---|---|---|
| Participation | Weekly participation on discussion board | 10% |
| Exercise | Practice sets | 10% |
| Assignment | Assignment | 20% |
| Examination ^ | Final Examination * | 60% |
^ Mandatory to Pass
* Assessment item identified for English language proficiency
^ Mandatory reference
For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.
Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:
Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.
The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.
ECF2222|1|1
This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.
Corporate finance involves the financial management of business entities. This unit investigates how managers make investment, financing, and dividend decisions. Investment decisions are based on discounted cash flow techniques and their extensions. These extensions enable us to study a wide range of problems including: new investments, investments with unequal terms, optimal replacement, and project options. Capital structure and dividend decisions are based upon the seminal works of Modigliani and Miller. In the first instance, we see that simplifying assumptions about corporate taxes and market behaviour can lead to naive conclusions about both corporate financing (primarily debt and equity) and dividend policy. As these simplifying assumptions are removed to better align with real-world conditions, the conclusions change from simplistic to complex. This unit will be taught with a particular focus on integrating real-world business cases and the development of students' skills to build frameworks firms can use to analyse and make investment decisions.
Students must pass 1 units from ECF1120
On completion of this unit students should be able to:
On-campus students attend three hour classes weekly. This can comprise of lecture and tutorial components. Off-campus students are supplied with unit materials accessed via Blackboard. Regular online access and participation on the discussion board is required.
GS1 GRADING SCHEMA 1 Used for standard coursework units
Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.
| Type | Description | Value |
|---|---|---|
| Exercise | Practice sets | 20% |
| Assignment | Assignment | 20% |
| Examination ^ | Final Examination * | 60% |
| Type | Description | Value |
|---|---|---|
| Exercise | Practice sets | 20% |
| Assignment | Assignment | 20% |
| Examination ^ | Final Examination * | 60% |
^ Mandatory to Pass
* Assessment item identified for English language proficiency
^ Mandatory reference
For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.
Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:
Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.
The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.
ECF2222|1|2