James Cook University Subject Handbook - 2002

CO2601:03

*NOTE* Business Finance 1

Townsville, Cairns

HECS Band 2

26 hours lectures, 12 hours tutorials, 12 hours workshops. Semester 2.

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

The study of the theory and practice of corporate finance at an intermediate level including: portfolio theory, capital project appraisal in the presence of risk, capital structure theory, dividend policy and capital market efficiency.

Learning Objectives:

  1. evaluate alternative asset pricing models;
  2. solve advanced capital budgeting problems;
  3. discuss the relevance of dividend policy and share buybacks;
  4. explain the competing theories of capital structure;
  5. describe the various forms of capital market efficiency and assess their significances for corporate financial decision-making.

Assessment by a written assignment (10%); tutorial participation (10%); two on-course tests (each 10%); final examination (60%).