James Cook University Subject Handbook - 2001

CO3611:04

Business Finance 2

Townsville

Prerequisites: CO2601
Inadmissable Subject Combination: CO2602

26 lectures, 24 tutorials. Second semester.

Staff: Dr S Alison.

The study of the theory and practice of corporate finance at an intermediate level including: arbitrage pricing theory, capital project appraisal in the presence of risk, capital structure theory, dividend policy, capital market efficiency, options, futures, international financial management.

Learning Objectives:

  1. evaluate alternative asset pricing models;
  2. solve advanced capital budgeting problems;
  3. explain the competing theories of capital structure;
  4. describe the various forms of capital market efficiency;
  5. explain the basis of valuation of traded options;
  6. design hedging strategies using futures contracts;
  7. discuss the implications of international operations on corporate financial management.

Assessment by a written assignment (10%); on-course test (20%); final examination (70%).