Lecture 1
Accounting for
Decision Making
Unit Details
Co-ordinator:
Flipped classroom
Lectures on-line
Lecture worksheets (on LMS) to complete and bring
to workshops
QuickBook Exercises (on LMS) to complete and bring
to workshop for checking by tutor
MURDOCH UNIVERSITY
MANAGEMENT & GOVERNANCE
BUS285 TECHNOLOGY & ACCOUNTING PROCESSES
LECTURE ONE EXAMPLE
Example 1
1.
2.
3.
4.
5.
Owner invested $80,000 of his own money to start the business
Business purchased equipment for $25,000 paying cash
Business pa
BUS325 Derivative Securities
Tutorial 7 Week 8
Problem 7.24.
In an interest rate swap, a financial institution pays 10% per annum and receives threemonth LIBOR in return on a notional principal of $100 million with payments being
exchanged every three mon
BUS325 Derivative Securities Tutorial Zero
1.
In June 2011, a sheep farmer became concerned that by the time her 50,000 kg wool crop
was ready for delivery in November 2011 that the price would fall from its current $10.50
per kg to less than her $9.60 pe
BUS325 Derivative Securities
Tutorial 11 Week 12
Problem 15.11.
An index currently stands at 696 and has a volatility of 30% per annum. The risk-free rate of interest
is 7% per annum and the index provides a dividend yield of 4% per annum. Calculate the v
1
Revision Question 1
This exercise revises recording transactions in a worksheet format.
Date
Transaction Details
30 Sep 20X0
Received a capital payout of $100,000 from the partnership with which
she used to work. She decided that she needed to invest
$2
BUS325 Derivative Securities
Tutorial 12 Week 12
Problem 17.11.
What is the delta of a short position in 1,000 European call options on silver futures? The options
mature in eight months, and the futures contract underlying the option matures in nine mont
BUS325 Derivative Securities
Tutorial 10 Week 11
Problem 13.13.
What is the price of a European call option on a non-dividend-paying stock when the stock
price is $52, the strike price is $50, the risk-free interest rate is 12% per annum, the volatility
i
BUS243: Chinese Business
Lecture 11
Chinas Financial System
1. A sound financial system is vital for a modern market economy:
Its functions include:
(a) Providing payment for services it is inconvenient, inefficient and risky to
carry hard cash for paymen
Interest Rate Risk
Interest Rate Risk and
Duration
This topic will consider the risk associated with investing
in bonds which results from changes in interest rates. It
will also address interest rate risk management.
Initially we will review the impact
Portfolio theory & asset pricing
Topic 6
1
Objectives
Explain the concept of efficient portfolios
Explain the relation between market risk, or
beta, and return
Compare beta and standard deviation as
measures of risk
Explain the relation between risk a
Review valuation concepts
Valuation of debt and equity
Topic 2
Objectives
Understand the difference between intrinsic value
and market value
Valuation of debt & equity securities using TVM
techniques
Understand the nature of interest rate risk
Briefly di
Dividend Policy Decisions
Topic 7
Objectives Dividend Policy
Explain why dividend policy is irrelevant to
shareholders wealth in a perfect capital market
with no taxes.
Identify the factors that may cause dividend
policy to be important.
Be familiar wi
Capital Budgeting and Cash Flow
Principles
Topic 4
Objectives
Be able to identify and calculate relevant project
cash flows
how to treat inflation
understand the effect of tax on CFs
Appl 1- Label Maker cash flows & NPV
The machine will cost $2500 & has
Risk and Return
Topic 5
1
Objectives
Define & measure risk and return
Understand the concept of risk-aversion
Explain how diversification reduces risk.
Covariance & correlation
Explain the distinction between systematic
(non-diversifiable) and non-sy
Capital Budgeting - Project
Evaluation Methods
Topic 3
Objectives
Be able to apply main methods of project
evaluation.
Recognize advantages / disadvantages of main
project evaluation methods.
Understand why net present value is preferred to
all other m
Chapter 8
The capital market
1
Learning objectives
Understand the functions of a capital market.
Distinguish between financial agency institutions,
financial intermediaries and investing institutions.
Identify and explain the role of financial agency
i