James Cook University Subject Handbook - 2001

CO2601:03

*NOTE* Business Finance 1

Townsville, Cairns

Prerequisites: CO1001 or CO1101

26 lectures, 24 tutorials, 13 hours workshops. First and second semester. Also offered at Holmes College in Sydney and Melbourne, first and second semester and January/February intensive block mode.

Staff: Dr S Alison (Townsville campus).

Introduction to the theory and practice of corporate finance including: capital investment appraisal, capital markets, risk and return, introduction to asset pricing.

Learning Objectives:

  1. explain the role of the firm, the capital market and the investor in basic finance theory;
  2. describe the structure of Australian capital markets and the operations of the major participants;
  3. financially evaluate proposed corporate capital investment projects;
  4. calculate the risk and return of portfolios of securities;
  5. describe the relationships underlying the construction of simple asset pricing models;
  6. design electronic spreadsheet applications for the evaluation of proposed capital investment projects.

Assessment by two written assignments (each 5%); two tests (each 10%); final examination (70%).