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ACFI2080: Corporate Finance
OVERVIEW
Course Description
All firms face decisions amongst alternatives when determining both how the firm will be financed and which projects offer the greatest return on investment. ACFI2080 expands across the financing decisions of firms, considers the implications of competitive markets for management, sources of long-term financing, alternative methods of raising capital and the impact of mergers and acquisitions. Students engage in problem solving and decision-making techniques reflective of current professional practice.
Contact Hours
Workshop
Face to Face On Campus Two (2) hour(s) per Week for Full Term
Students are expected to complete 4 hours of guided learning via online preparation, lectures, interactive workshops, tutorials, discussion groups or self-directed learning and an additional 6 hours of independent study per week.
Unit Weighting
10
Requisites
Students must have successfully completed ACFI2070 to enrol in this course.
Workload
Students are required to spend on average 120-140 hours of effort (contact and non-contact) including assessments per 10 unit course.
Please refer to the course CANVAS site for details of teaching staff for ALL course offerings. The primary contact for courses is the Course Coordinator, whose details are listed on the course CANVAS site.
Student Consultation
A minimum of one (1) hour of consultation per week. Please see course CANVAS site for details of time and location.
Course Learning
On successful completion of this course, students will be able to:
Outcomes
1. Identify and explain the sources of long-term financing that affect a firm’s financing decision;
2. Apply and analyse capital structure theories to the financing decision of firms;
3. Critically appraise the efficient market hypothesis including the impact of behavioural finance on efficient markets;
4. Apply the theory of mergers and acquisitions and evaluate the evidence and its implications for management;
5. Examine the characteristics of firms in distress and its associated implications; and
6. Analyse, synthesise and evaluate the outcomes of financial problems.
ASSESSMENT DETAILS
This course has 3 assessments. Each assessment is described in more detail in the sections below:
|
|
Assessment Name |
Due Date |
Involvement |
Weighting |
Learning Outcomes |
| 1 |
Mid-Semester Examination |
Week 8 – Time & Date to be determined |
Individual |
25% |
1, 2, 3 |
| 2 |
Report |
Monday, Week 11 by 11:59 pm |
Individual |
25% |
3, 6 |
| 3 |
Final Examination |
Formal Examination Period |
Individual |
50% |
1, 2, 3, 4, 5, 6 |
Time referenced is time in Newcastle NSW
|
Late Submissions |
The mark for an assessment item submitted after the designated time on the due date, without an approved extension of time, will be reduced by 10% of the possible maximum mark for that assessment item for each day or part day that the assessment item is late. Note: this applies equally to week and weekend days. |
Assessment 1 – Mid Semester Examination
Assessment Type
In Term Test
Purpose
This quiz requires you to demonstrate knowledge of financial concepts: particularly related to sources of long-term financing, methods of raising capital, capital structure decisions and market efficiency.
Description
In this quiz you will be required to answer multiple-choice and short-answer questions.
You will be required to apply critical thinking and analytical problem-solving skills to provide reasoned and appropriate responses to the questions.
Weighting
25%
Length
95 minutes (including reading time)
Due Date
Week 8 – In Class
Submission Method
In Class
Assessment Criteria
The following five (5) criteria will be applied:
− Demonstrated understanding of theory and relevant concepts
− Demonstrated ability to solve problems
− Accuracy of information/argument.
− Clarity of expression
− Relevance of answer to the question
Return Method
In class
Feedback Provided
Returned Work - Feedback will be provided to students in the following ways:
1. Marked mid-semester quizzes will be returned to students.
2. The solution will be made available to students on CANVAS to use as feedback for reflection and development.
3. In class
Assessment 2 - Report
Assessment Type
Report
Purpose
The purpose of this assignment is to assess students' capacity to demonstrate their understanding of the efficient market hypothesis in a real-world setting.
Description
This assessment item relates to the following course learning outcomes:
1. Critically appraise the efficient market hypothesis including the impact of behavioural finance on efficient markets;
2. Analyse, synthesise and evaluate the outcomes of a detailed financial problem.
3. Reflect upon and interpret conclusions, communicating them in formats conducive to both audience and purpose.
Weighting
25%
Length
Maximum 2000 words
Due Date
Monday of Week 11 by 11:59 pm
Submission Method
Online – via Turnitin
Assessment Criteria
You will be assessed on the accuracy of your information and argument and clarity of expression.
Return Method
Online
Feedback Provided
Online - Feedback will be provided on the Course CANVAS site within two weeks of submission of the assignment.
Assessment 3 - Final Examination
Assessment Type
Formal Examination
Purpose
The exam requires you to demonstrate knowledge of financial concepts’ particularly related to the sources of long-term financing, methods of raising capital, capital structure decisions, market efficiency, mergers and acquisitions, and financial distress.
Description
In this exam you will be required to answer multiple-choice and short-answer questions.
You will be required to apply critical thinking and analytical problem-solving skills to provide reasoned and appropriate responses to the questions. Further information will be provided about the final exam and will be posted on CANVAS prior to the beginning of the last lecture.
This course has a RESTRICTED OPEN BOOK examination. A memory aid is permitted. The memory aid is a single double sided A4 sheet of handwritten or typed notes for use during the examination. Note: memory aids must be left on the examination table and cannot be removed from the examination venue.
Weighting
50%
Length
120 minutes
Due Date
Formal Exam Period
Submission Method
Formal Examination
Assessment Criteria
The following five (5) criteria will be applied:
− Demonstrated understanding of theory and relevant concepts
− Demonstrated ability to solve problems
− Accuracy of information/argument.
− Clarity of expression
− Relevance of answer to the question
Return Method
Not Returned
Feedback Provided
No Feedback. Examination scripts will not be returned to students. Final examination scripts will be made available for review by students, upon request, in a controlled and monitored setting. Students are required to make requests, directly to the relevant course coordinator. Completed examination scripts are kept by the Newcastle Business School for a period of six (6) months only, from the relevant fully graded date. Requests made after the six (6) month period cannot be considered.
SYLLABUS
Course Content
Topics in the course include but are not limited to the following:
1. Sources of long-term financing
2. Raising capital
3. Theories of capital structure
4. Market efficiency and implications of competitive markets for management
5. Mergers and acquisitions
6. Financial distress
Course Materials
Required Text:
Ross, S., Westerfield, R., Jaffe, J., and Jordan, B., Corporate Finance, 13th ed. (2022) – McGraw-Hill.
ISBN: 9781260772388
Supplementary Text:
Peirson, G., Brown, R., Easton, S., Howard, P. and S. Pinder, Business Finance, 12th ed. (2015) – McGraw-Hill- city
ISBN: 978-1-74307-897-6
An additional readings list will be provided on the course CANVAS site.
SCHEDULE
|
Week |
Topic |
Class Preparation |
Assessment |
| 1 |
Sources of Long-term Financing |
Read- Ross et al. Chapter 15 |
|
| 2 |
Raising Capital |
Read- Ross et al. Chapter 20 |
|
| 3 |
Capital Structure: Basic Principles |
Read- Ross et al. Chapter 16 |
|
| 4 |
Capital Structure: Limits to the Use of Debt |
Read- Ross et al. Chapter 17 |
|
| 5 |
Market Efficiency - Part A Introduction to Capital Market Efficiency |
Read- Ross et al. Chapter 14
Peirson et al. Chapter 16
|
|
| 6 |
Market Efficiency - Part A
Test of EMH and Evidence
|
Read- Ross et al. Chapter 14
Peirson et al. Chapter 16
|
|
| 7 |
Market Efficiency - Part A
Test of EMH and Evidence (cont)
|
Read- Ross et al. Chapter 14
Peirson et al. Chapter 16
|
|
| 8 |
Mid-semester Examination |
|
Assessment 1 due: Midsemester exam due in class - Week 8 |
| 9 |
Market Efficiency - Part B
Behaviour Finance and Implications
|
Read- Ross et al. Chapter 14
Peirson et al. Chapter 16
|
|
| 10 |
Mergers and Acquisitions - Part A
Classification and Reasons for M&A
|
Read- Ross et al. Chapter 29 |
|
| 11 |
Mergers and Acquisitions – Part B
Valuation and Other Issues
|
|
Read- Ross et al. Chapter 29 Assessment 2 due: Report due by 11:59 pm on Monday of Week 11 |
| 12 |
Financial Distress |
Read- Ross et al. Chapter 30 |
|
| 13 |
Revision |
|
Course Revision |
ADDITIONAL INFORMATION
Grading Scheme
This course is graded as follows:
|
Range of Marks |
Grade |
Description |
|
85-100 |
High Distinction (HD) |
Outstanding standard indicating comprehensive knowledge and understanding of the relevant materials; demonstration of an outstanding level of academic achievement; mastery of skills*; and achievement of all assessment objectives. |
|
75-84 |
Distinction (D) |
Excellent standard indicating a very high level of knowledge and understanding of the relevant materials; demonstration of a very high level of academic ability; sound development of skills*; and achievement of all assessment objectives. |
|
65-74 |
Credit (C) |
Good standard indicating a high level of knowledge and understanding of the relevant materials; demonstration of a high level of academic achievement; reasonable development of skills*; and achievement of all learning outcomes. |
|
50-64 |
Pass (P) |
Satisfactory standard indicating an adequate knowledge and understanding of the relevant materials; demonstration of an adequate level of academic achievement; satisfactory development of skills*; and achievement of all learning outcomes. |
|
0-49 |
Fail (FF) |
Failure to satisfactorily achieve learning outcomes. If all compulsory course components are not completed the mark will be zero. A fail grade may also be awarded following disciplinary action. |