BFC3140 Advanced corporate finance
Unit Guide Semester 1, 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: 22 Feb 2015
Table of Contents BFC3140 Advanced corporate finance - Semester 1, 2015...................................................................1 Mode of Delivery..............................................................................................................................1 Workload requirements....................................................................................................................1 Unit Relationships............................................................................................................................1 Prerequisites........................................................................................................................1 Prohibitions..........................................................................................................................1 Chief Examiner(s)........................................................................................................................................1 Campus Lecturer(s).....................................................................................................................................1 Clayton.............................................................................................................................................1 Tutor(s)........................................................................................................................................................2 Clayton.............................................................................................................................................2 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 Examination(s).............................................................................................................................................7 Examination 1..................................................................................................................................7 Learning resources......................................................................................................................................8 Feedback to you..........................................................................................................................................8 Assignment submission...............................................................................................................................8 Online submission...........................................................................................................................8 Required Resources....................................................................................................................................8 Prescribed text(s) and readings.......................................................................................................9 Recommended text(s) and readings................................................................................................9 Other Information....................................................................................................................................10 Policies..........................................................................................................................................10 Graduate Attributes Policy.................................................................................................10 Student Charter.........................................................................................................................................10 Student services........................................................................................................................................10 Monash University Library.........................................................................................................................10 Moodle 2....................................................................................................................................................10 Disability Liaison Unit................................................................................................................................11
BFC3140 Advanced corporate finance - Semester 1, 2015 This unit extends corporate finance concepts introduced in AFC2140/BFC2140. Topics include equity financing, asset pricing and cost of capital, risk management, real options, capital structure, mergers and acquisitions, corporate governance and international corporate finance.
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 Prerequisites AFC2140 or BFC2140
Prohibitions AFC3140
Chief Examiner(s) Dr Philip Gharghori (First semester) Dr Hue Hwa Au Yong (Second semester)
Campus Lecturer(s) Clayton Dr Philip Gharghori Campus: Clayton Phone: +61 3 990 59247 Email:
[email protected]
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BFC3140 Advanced corporate finance - Semester 1, 2015
Tutor(s) Clayton Mr Fotis Grigoris Campus: Clayton Email:
[email protected] Mrs Himali Palpita Campus: Clayton Email:
[email protected] Mr Mardy Chiah Campus: Clayton Email:
[email protected]
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 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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Academic Overview Learning Outcomes The learning goals associated with this unit are to: 1. evaluate investment and financing decisions 2. apply analytical techniques to a variety of problems in domestic corporate financial management 3. describe the institutional environment in which financial decisions are made including identifying the sources of financial risk and their relevance in financial management 4. critically evaluate finance theories, concepts, assumptions, limitations and arguments 5. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with advanced corporate finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC3140.
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Unit Schedule Week
Activities
0
Assessment No formal assessment or activities are undertaken in week 0
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Equity Finance - Chapter 23
2
Asset Pricing - Chapters 11 and 12
3
Options - Chapter 20
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Options - Chapter 21
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Real Options - Chapter 22
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Mid-Semester Test
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Capital Structure - Chapters 14 and 15
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Capital Structure - Chapter 16
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Capital Structure - Chapter 18
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International Corporate Finance - Chapter 31
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Mergers, Acquisitions and Takeovers - Chapter 28
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Corporate Governance - Chapter 29 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 site. The Moodle site provides access to relevant material including past examination papers and model answers. These resources will enable you to develop a mastery of the topics covered by the unit.
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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: 25% Examination: 75% Assessment Task Value Mid-semester test
25%
Examination 1
75%
Due Date
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 25% of the assessment regime is allocated to in-semester assessment and 75% to the final 3-hour examination. A student enrolled in this unit might achieve 20 out of 25 for their in-semester assessment and 30 out of 75 for the final examination. While the overall total of these marks is 50P the final examination mark is 7.5 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. 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. 5
Unit Schedule
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.buseco.monash.edu.au/esg/agu/policies/assessment.html.
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Assessment Requirements Assessment Tasks •
Assessment task 1 Title: Mid-semester test Due date: Details of task: This will be a 1-hour test conducted in the Week 6 lecture time. This will be a closed book test and calculators with ‘approved for use’ faculty label will be permitted. The in-semester test questions will be a combination of short answer questions and longer worked questions. Questions will require both quantitative and descriptive answers. All materials covered in Weeks 1 to 4 will be examinable. Weighting/Value: 25% Estimated return date: Marks will be made available to students during tutorials 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, 2, 4 and 5. Additional information: If an application for special consideration is received within two full days after an in-semester test weighted at more than 10 per cent of the final mark; and the application is approved by the Chief Examiner, then you will be offered a make-up test, which you will be required to take prior to the examination period.
Examination(s) •
Examination 1 Weighting: 75% Length: 3 hours Type (open/closed book): Closed book Electronic devices allowed in the exam: Calculator with an 'approved for use' faculty label. 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, 7
Assessment Requirements
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 table showing examples of grades and corresponding achievement levels published in the Q Manual (2012, p. 6).
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: •
Other: In this unit important feedback will be provided to you by the marks, comments and other annotations written on the in-semester test that you are required to sit in week 6. From time to time comments and explanations will be made in lectures and tutorials regarding in-semester tests and other assessment tasks.
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 (Building 11, Level 10).
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Assessment Requirements
Prescribed text(s) and readings Berk, J. B., & DeMarzo, P. (2014). Corporate finance (3rd global ed.). Pearson Education. The second edition of this text is also usable.
Recommended text(s) and readings Additional reading and general learning resources will be made available on Moodle.
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Other Information Policies Monash has educational policies, procedures and guidelines, which are designe d 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
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.
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. 10
Other Information
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:
[email protected] Drop In: Equity and Diversity Centre, Level 1, Building 55, Clayton Campus.
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