Unit Name: Business Finance

Unit Code: BAO5534

Year: 2015
Semester Two
Location: Sydney

Prepared by: Dr Michael Ntalianis

Welcome
Welcome to this unit of study. This Unit Guide provides important information and should be kept as a reference to assist
with your studies. This Guide includes information about your reading and resources, independent learning, class activities
and assessment tasks. It is recommended that you read this Guide carefully: you will be expected to manage your learning
as you work towards successful study.
Detailed information and learning resources for this unit have also been provided on the Unit website on VU Collaborate
which can be reached via the Student Portal at vu.edu.au/student-tools/myvu-student-portal
It is important that you access your Unit website regularly.
Please also refer to information provided on the Student Portal that supports studying at VU.
Acknowledgement of Country
We respectfully acknowledge and recognise the traditional owners, their Elders past and present, their descendants and kin
as the custodians of this land.

Contents
Welcome
Acknowledgement of Country
Introduction to the unit ..................................................................................................................................... 3
Key staff ..................................................................................................................................................... 3
Required readings ....................................................................................................................................... 5
Indicative schedule for this unit ............................................................................. Error! Bookmark not defined.
Assessment details: ........................................................................................................................................ 8
Succeeding at Victoria University......................................................................................................................11
Providing feedback: Student Evaluation System (SES) ........................................................................................11

Introduction to the unit

Unit Title: Business Finance

Unit Code: BAO5534

Year:

2015

Semester Two

Credit Points: 12

Other details:

Key staff
Unit co-ordinator

Name: Dr Michael Ntalianis

Location: Footscray Park
Contact number: 99195048
Contact email: Michael.ntalianis@vu.edu.au

Teaching team

Dr Tek Lama
Email: Tek.lama@vu.edu.au

Unit description
This unit investigates alternative financing proposals that firms may face in both the shorter and longer term. Through this
process students develop a high level of financial literacy enabling them to investigate, analyse and synthesise complex
financial information including knowledge of theoretical and practical developments in finance and solving complex
problems through the application of specific techniques of analysis.
Prerequisites
None

Co-requisites
None

Mode of delivery
Face to Face

Learning Outcomes
At the completion of this unit, students should be able to:
1. Critically reflect on the financial press and interpret the information in relation to Australian and global financial
institutions;
2. Critically review the theoretical and practical developments in finance in our dynamic, global context;
3. Deconstruct matters relating to Business Finance and propose resolutions to identified problems;
4. Adapt the application of specific techniques of analysis in solving Business Finance problems;
5. Investigate the impact of alternative financing proposals that a firm may face in both the short and long term and
argue recommendations.
Learning and teaching strategies
This is a unit of study where learners are responsible for managing their own time in completing prescribed reading,
undertaking further research and completing assessment tasks. Students are expected to participate in practical problem
solving sessions, usually through team work, in class, and through case study analysis. Students are supported through
regular in-class contact, such as lectures, tutorials and workshops and are expected to participate in online learning
activities, peer discussion and review, and self-reflection. For every classroom-based contact hour it is expected that
students will undertake another two hours of self-directed work.
The subject is taught using a lecture/tutorial basis. Lectures will consist of topic summaries, explanations and
demonstrations and will provide an overview of the theoretical and applied aspects of the course content. However, they
will constitute an introduction only in order to gain full command of the subject matter students must complete all relevant
reading, participate actively in the tutorials and undertake additional exercises and problems (learning through doing).
Tutorials are arranged to assist students in their own work. Attendance at tutorials is expected. Each student is required to
attend a one-hour tutorial class each week. All students must enrol in the available classes at the beginning of the session.
To meet the course requirements, a student must attend all tutorials. Attendance constitutes being present and having
adequately prepared the set work.
Sessions in this unit will consist of lectures and tutorials for the duration of 3 hours per week. Lectures will be used to
introduce and explore concepts. Tutorials will enhance understanding and develop skills they involve guided discussions,
exercises and case studies.

Graduate Capabilities
In addition to discipline knowledge, skills and their application, the study of this unit is intended to contribute to students
developing the capabilities needed to be:

Adaptable and capable 21st century citizens who can communicate effectively, work collaboratively, think critically
and solve complex problems

Confident, creative lifelong learners who can use their understanding of themselves and others to achieve their
goals in work and learning

In this unit you will receive feedback on your development of key aspects of the above graduate capabilities through:

Formative assessment tasks (tests, assignment)

Required readings
Berk, Demarzo, Harford, Ford, Mollica & Finch (2014), Fundemamentals of Corporate Finance, 2nd Edition,
Pearson.
Chapter 15 from Petty, et al (2012), Financial Management Principles and Applications, 6th Edition, Pearson.
You can access this chapter from VU Collaborative in PDF format.

Lecture Program
Week
Beginning
27 July

Lecture Readings

Lecture Topics and Activities

Introduction to Finance and the Financial Markets

Chapter 1

3 August

Time Value of Money

Chapters 3, 4 & 5

10 August

Valuation of Bonds and Shares

Chapters 6 & 7

17 August

Valuation of Bonds and Shares

Chapter 6 & 7

Risk and Rates of Return

Chapters 11 &12

Risk and Rates of Return

Chapters 11& 12

Capital Budgeting

Chapter 8

Capital Budgeting

Chapters 8 & 9

24 August

31 August

TEST ONE WILL BE HELD AT THE BEGINNING OF THIS

LECTURE
7 September

Capital Budgeting

Chapter 9

Cost of Capital

Chapter 13

14 September

Cost of capital

Chapter 13

21 September

Leverage Analysis

Chapter 15 (From Petty et al 2012 refer

to required reading list).

28 September

Leverage Analysis

Refer to VU Collaborative for reading

material.

ASSIGNMENT IS DUE
5 October

Capital Structure

Chapter 16

TEST TWO WILL BE HELD AT THE BEGINNING OF THE

LECTURE
12 October

Capital Structure

Chapter 16

Exam Information

Refer to VU Collaborative for revision

material and for examination information

Tutorial Program.
Week
Beginning
27 July

Tutorial Topics and Activities

Readings/Resources
Tutorial program

Introduction to Time Value of Money

Concepts

Refer To VU Collaborative for tutorial material.

3 August

Introduction to Finance and the Financial

Markets

Chapter 1: Problems: 1, 5, 6, 8, 10, 13, 14, 15, 19, 20, 21 &

22.

10 August

Time Value of Money

Chapter 3: Review Questions: 6, 7, 8 & 9. Problems: 16,

17, 18, 19
Chapter 4: Review Questions: 1, 3, 4 & 6. Problems: 4 & 7

17 August

24 August

31 August

Time Value of Money

Chapter 4: Problems: 12, 14, 23, 24 & 27

Interest Rates

Chapter 5: Review Questions: 2 & 3 Problems: 2, 5 & 10

Interest Rates

Chapter 5: Review Questions: 6, 7 Problems: 26, 27 & 30

Bond Valuation

Chapter 6: Review Questions: 1, 2 & 3 Problems: 1, 2, 4a,

6, 9 & 11

Share Valuation

Chapter 7: Review Questions: 1, 2 & 3 Problems: 3, 5, 6, 8,

10 & 11.

Risk and Return

Chapter 11: Review Questions: 4, 6, 7, 8, 9, 12 & 13.

7 Septmeber

Risk and Return

Chapter 11: Problems: 1, 12, 13 & 14.

Chapter 12: Review Questions: 2, 3, 4, 5 & 6 Problems: 2,
12, 24 & 28.

14 September

Capital Budgeting

Chapter 8: Review Questions: 1-7 and Problems: 5, 6, 7,

20, 23 and 30.

21 September

Capital Budgeting

Chapter 9: Review Questions: 1-7 and Problems: 5, 9, 13,

16, 20, 27a,b&c.

28 September

Cost of capital

Chapter 13: Review Questions: 1-10 and Problems: 14, 15,

18, 21 & 23.

Leverage Analysis

Refer to Material (Petty et al) provided in VU

Collaborative.

5 October

Chapter 15: Questions 1, 2, 3, 4, 5 & 8. Problems 9, 13, &

14. Self-test problem 2
12 October

Capital Structure

Chapter 16: Review Questions: 1, 2, 3, 4, 5, 7 & 9.

Problems: 5, 7, 11, 16, 20 & 21

Assessment details:
Table B
Assessment
1. Test One

Assessment Tasks: Descriptions

The first test will cover the following topics from
your unit material: Topics 1, 2 & 3

Learning Outcomes
and
Graduate Capabilities
LO4: Adapt the application
of specific techniques of
analysis in solving
Corporate Finance
problems

Assessment
Criteria

Weighting (%)

Due date

The test will require students to answer a series

of short-answer practical and theoretical
questions

15%

Week beginning
31 August

2. Test Two

The second test will cover the following topics

from your unit material: Topics 4 ,5 & 6

LO4: Adapt the application

of specific techniques of
analysis in solving
Corporate Finance
problems

The test will require students to answer a series

of short-answer practical and theoretical
questions.

20%

Week Beginning
5 October

3. Assignment

The assignment will require you to provide

responses to a practical case study. The
assignment will mainly focus on risk and return.

LO3:Deconstruct matters
relating to Corporate
Finance and propose
resolutions to identified
problems. LO4:Adapt the
application of specific
techniques of analysis in
solving Corporate Finance
problems;

The assignment will require students to form

groups and respond to a questions relating to a
practical case study. More detail on the
assessment process will be provided on the
assignment sheet.

15%

Week Beginning
28 September

4. Final Exam

The exam will cover the majority of topics in the

unit guide. More specific detail will be provided
through VU Collaborative.

LO3, LO4 & LO5

The will final exam the assess students ability to

apply their financial knowledge to a set of
practical and theoretical questions and
problems.

50%

Refer to the
examination
timetable.

Further information related to assessment

Students must attempt all assessment in order to qualify for a pass in this subject.

Submission procedure
Ensure that all assessments are submitted with the completed assignment cover sheets as appropriate. Assignment must
be provided to either your lecturer or tutor on or before the due date. Late submissions will incur penalties.

Scholarly writing, plagiarism and copyright

An academic course of study requires students to source information in a number of different formats including factual
information, data and analysis, reasoned arguments and the insights of others. Part of what it means to be a scholar is to
engage with the work of others, for example, to extend or refine ones own ideas, critique the work of others, or test and
extend theories. However, remember to give credit where credit is due, that is, acknowledging the work of others in your
own work by using the correct referencing system. Failure to acknowledge other peoples work appropriately may be
regarded as plagiarism or academic misconduct. VU deals with plagiarism according to the Academic Honesty and
Preventing Plagiarism policy (http://wcf.vu.edu.au/governancepolicy/PDF/POA040915000.PDF)
Copyright law gives the owner of text, photos, pictures, films and recordings the rights to control reproduction, publication,
communication, performance and adaptation of their work. All students and staff of Victoria University are bound by the
requirements of the Copyright Act (1968) when using third party copyright material in the course of their research and
study.
For information on copyright entitlements and responsibilities for study and research please see
vu.edu.au/library/referencing-copyright/copyright
Referencing requirements within this unit
The referencing convention that is applicable to this unit is the Harvard referencing system.
Academic writing and referencing guidelines:
Two VU online support sites on academic writing and appropriate referencing are:

vu.edu.au/library/referencing-copyright/referencing-guides

vu.edu.au/campuses-services/student-support/language-learning/academic-writing

Failure to meet assessment deadline(s)

Any option for late assessment submission must be discussed and agreed upon with the unit co-ordinator. Late
submissions will incur a penalty unless an extension is granted by the unit coordinator.

Extensions, Alternative Examinations and Special Consideration

If you are not able to submit your work by the submission date or able to attend the final examination, and there are
grounds (medical, personal hardship, extenuating circumstances, etc.) for not attending the examination or submitting your
work on time, or for your performance being impaired, you may submit an online application for an extension, an alternative
exam or for special consideration. You can find information and forms for Special Consideration, Alternative Examinations
and Supplementary Examinations at http://www.vu.edu.au/student-life/exams-results/special-consideration-supplementary10

exams. You may need to contact a student counsellor to assist you with this process. For further information please
see vu.edu.au/student-life/getting-help/counselling
Supplementary Assessment
Supplementary Assessment may be available to students who have marginally failed a task, have not demonstrated
competency for a unit, or who were successful in a claim for special consideration. If you wish to be considered for
Supplementary Assessment you should refer to the policy
http://wcf.vu.edu.au/GovernancePolicy/PDF/POA090212002.PDF
Forms are available at vu.edu.au/student-tools/student-forms
The student assessment policy is available at http://wcf.vu.edu.au/GovernancePolicy/PDF/POA090212002.PDF
Student Complaints Resolution
Victoria University has a Student Complaints Resolution policy to guide you through the steps you can take to resolve
issues related to your time at the University. If your issue relates to your study, the first step is to raise it directly with the
relevant academic staff. You also have the option to make a confidential appointment with a Student Advocate if you are
unsure how to approach the situation. For more information go to vu.edu.au/student-life/getting-help/student-complaintsresolution
Succeeding at Victoria University
As a university of opportunity, Victoria University is committed to providing all students with the opportunity to succeed in
their studies. If you require any support during the semester you are advised to speak to your unit co-ordinator, course coordinator or class teacher. There is also additional support and guidance for students.
At VU we have a range of support, development and guidance and opportunities for you outside the classroom as part of
your learning experience. The portal (vu.edu.au/student-tools/myvu-student-portal) provides detailed information on a
range of student services (outlined in Table C below) with which you will find helpful.
Table C

General student support services

Course structures

Services for international students

Calendars and timetables

Services for students with disabilities and/or

medical conditions

Student email

Assignment cover sheets and forms

Students rights and responsibilities

Social networking at VU

Student complaints

Student advocacy

The Library

Academic Support and Development

Student life and student associations

Providing feedback: Student Evaluation System (SES)

Your feedback on your experiences within this unit is important, because it assists VU to improve the learning experience of
units and courses for future students.
You are encouraged to provide informal feedback directly to your unit and course co-ordinators. The University also collects
your anonymous feedback systematically through the Student Evaluation Survey (SES), the name for the two combined
student evaluation instruments: the Student Evaluation of Unit (SEU) and the Student Evaluation of Teaching (SET).
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Students are asked to complete the SEU and SET near the end of each unit. SEU and SET results are anonymous, and
are not made available to the teaching staff in the unit until after the University has released your final grades.
Examples of actions taken recently to improve this unit, that were based on or influenced by student or other
feedback
Continuous improvement is made each semester to reflect relevant feedback from our students. The recommended
reading material has changed to reflect more contemporary subject matter.

Unit Guide Version Number: Three

Last Validation Date: 28 July 2015

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