James Cook University Subject Handbook - 2002

CO4601:04

Business Finance (Honours)

Townsville

HECS Band 2

40 hours seminars/workshops. Offered as required.

Staff: Dr S Alison.

The study of finance theory and corporate policy at an advanced level.

Learning Objectives:

1. explain the underlying concepts and relationships of mean-variance and stochastic dominance decision theories;
2. discuss the relationship between the value of information and efficient capital markets;
3. explain the determinants of the pricing of derivative securities;
4. identify corporate financial applications of option pricing theory;
5. evaluate the published empirical research relating to relevant issues in corporate finance;
6. identification and evaluation of the issues relating to the international dimensions of corporate finance theory.

Assessment by project (20%); final examination (80%).