James Cook University Subject Handbook - 2002

CO3611:04

Business Finance 2

Townsville

HECS Band 2

26 hours lectures, 12 hours tutorials, 12 hours workshops. Semester 1.

Staff: Assoc. Professor S Alison.

The study of the theory and practice of corporate finance at final year undergraduate level including: leasing, mergers and takeovers, options, futures, interest rate exposure, foreign exchange exposure, financing the global firm, foreign investment decisions.

Learning Objectives:

  1. assess the corporate lease-buy decision;
  2. analyse proposed mergers/takeovers;
  3. explain the basis of valuation of traded options;
  4. design hedging strategies using futures and options contracts;
  5. explain the concepts of interest rate and foreign currency exposure and design strategies for management control;
  6. discuss the principles of global corporate financing;
  7. solve multinational capital budgeting problems.

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