James Cook University Subject Handbook - 2002

BU5005:03

Financial Management

Townsville, Cairns

HECS Band 2

40 hours lectures. Semester 2.

Staff: Assoc. Professor S Alison (Townsville campus).

This subject covers the foundations of corporate finance and uses these foundations to analyse many of the important financial decisions made within organisations. The subject also examines the role of finance in supporting the marketing, production and other functional areas of the firm.

Learning Objectives:

  1. understand fixed-income and stocks valuation;
  2. understand the capital budgeting process and how to select investment projects;
  3. determine the optimal capital structure of the firm and how it is affected by taxes;
  4. understand pro-forma statements, ratio analysis, discounted cash flow valuation and risk analysis;
  5. understand the notion of market efficiency, the valuation of options and other derivatives.

Assessment to be advised by first week of lectures.