Course specification The current and official versions of the course specifications are available on the web at http://www.usq.edu.au/course/specification/current. Please consult the web for updates that may occur during the year.
FIN3101 Finance Theory and Applications Short Description:
Finance Theory & Applications
Faculty or Section :
Faculty of Business, Education, Law and Arts
School or Department :
School of Commerce
Student contribution band :
ASCED code :
081101 - Banking and Finance
Grading basis :
Version produced :
3 January 2018
Requisites Pre-requisite: FIN1101 and FIN1103
Other requisites Recommended - pre-requisite FIN2105.
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.
Synopsis This course extends the material presented in FIN1101 and FIN2302. It also introduces further more advanced theory and applications thereof. Firstly, some fundamental issues in finance such as the consumption/investment trade-off and the interaction of that decision with capital markets (under conditions of certainty) are introduced. The arithmetic of mean-variance portfolio theory is then presented. This allows portfolio theory to be developed, which then leads into the presentation of the related capital asset pricing model together with two important applications. The important 'existence' issue of an optimal capital structure is then examined by way of the propositions resulting from Modigliani and Miller's analysis together with some alternative theories of capital structure. Empirical evidence on capital structure is examined and the various theories of capital structure assessed from a practical point of view. Various methods of evaluating the levered firm are then developed with particular emphasis given to the incidence of taxes in a dividend imputation tax system. Finally, the interesting and important area of mergers, acquisitions and governance is explored. Formerly FIN2101.
Course offers Semester
Semester 2, 2017
Semester 2, 2017
Updated 3 January 2018