Introduction to financial
management
WEEK 1
Chapter 1 & 2
1
Expectations
Attend all classes with copies of slides.
Read the text book.
Attend all tutorials and participate.
Complete the weekly quizzes and assignment.
If you are struggling
Attend con
AFIN 253
Financial Management
Please note that there are two components to this assignment.
This assignment is worth 10% of your total grade.
Assignments are due 5th May 2017 at 12:00 Midday. Late submissions will attract a late penalty of 10% per day.
In
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Candidates are not permitted to remove
any part of it from the examination room.
OTHER NAMES.
STUDENT NUMBER.
SESSION 1 FORMAL EXAMINATIONS JUNE/JULY 2014
EXAMINATION DETAILS:
Unit
53AL
2 FIN
I N IV E
F
A
NS
IO N
TE
ESS
IN
NS
SIO
VI
RE
WHAT IS IT?
Intensive 3- hour
preparation for the
Final Exam run by
Steve and James (PAL
Leaders)
Free*
Additional PAL session
Covers Lectures 1-12
Regular PAL sessions
happen in weeks 12 &
13
We
Tutorial 5: The Fundamentals of Capital Budgeting
Chapter 10:
Critical thinking question: 10.5, 10.8
Questions and problems: 10.8, 10.13, 10.14, 10.32, 10.35
CTQ
10.5
a.
A company takes on a project that would earn a return of 12
percent. If the appropria
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FAMILY NAME.
This question paper must be returned.
Candidates are not permitted to remove
any part of it from the examination room.
OTHER NAMES.
STUDENT NUMBER.
SESSION 1 FORMAL EXAMINATIONS JUNE 2015
EXAMINATION DETAILS:
Unit Code:
Tutorial 4: Bond and Share Valuation
Chapter 8:
Critical thinking question: 8.2, 8.6
Questions and problems: 8.3, 8.26, 8.29
Chapter 9:
Questions and problems: 9.2, 9.7, 9.8, 9.18, 9.29
CTQ
8.2
Describe the informational differences that separate the thre
Options
WEEK 11
Chapter 20
1
Financial options
A financial option is a derivative security in that its
value is derived from the value of another asset.
The owner of a financial option has the right, but not
the obligation, to buy or sell an asset on or
International Financial
Management
WEEK 12
Chapter 21
1
Introduction to international
financial management
Globalisation refers to the removal of barriers to
free trade and the closer integration of national
economies.
Consumers in many countries buy go
Bond and Share Valuation
Week 4
Chapter 8 & 9
1
Capital market efficiency
Markets exhibit informational efficiency if market prices
reflect all relevant information about securities at a
particular point in time
In an informationally efficient market, m
The fundamentals of capital
budgeting
WEEK 5
Chapter 10
1
Introduction to capital budgeting
The importance of capital budgeting
Capital budgeting decisions are the most important
investment decisions made by management.
The goal of these decisions is to
Risk and Return
WEEK 3
Chapter 7
1
Risk and return
Future value vs. present value
The greater the risk, the larger the return
investors require as compensation for bearing
that risk.
Rate of return is what we earn from investment
stated in percentage te
Time Value of Money
Fundamentals
WEEK 2
Chapter 5 & 6
1
Time value of money
Consuming today or tomorrow
TVM is based on the belief that people prefer to
consume goods today rather than wait to
consume similar goods tomorrow
Positive time preference
Mone
Cash Flows and Capital
Budgeting
WEEK 6
Chapter 11
1
Calculating project cash flows
The Importance of capital budgeting
In capital budgeting, we estimate the NPV of the cash
flows that a project is expected to produce in the
future
All of the cash flow
MACQUARIE )l SEAT NUMBER: ROOM:
UNIVERSITY
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FAMILY
STUDENT
SESSION 2 FORMAL EXAMINATIONS NOVEMBER 2014
EXAMINATION DET
Week 8 Tutorial Solutions
Critical Thinking Questions - 17.2, 17.7 and 17.8
Questions and Problems - 17.6, 17.7, 17.8, 17.10, 17.12, 17.13, 17.19 and 17.22
Critical Thinking Questions
17.2
The price will generally drop on the ex-dividend date by approxima
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MACQUARIE
UNIVERSITY
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Week 3: Risk and Returns
Chapter 7:
Questions and problems: 7.6, 7.7, 7.12, 7.17, 7.19, 7.20, 7.25, 7.27, 7.32, 7.33
7.6
Describe how investing in more than one asset can reduce risk through
diversification.
An investor can reduce the risk of his or her i
Tutorial 2: Time Value of Money Fundamentals
Chapter 5:
Questions and problems: 5.7, 5.12, 5.15, 5.32, 5.35
Chapter 6:
Questions and problems: 6.7, 6.13, 6.14, 6.18, 6.23, 6.25, 6.33
5.7
Multiple compounding periods: Find the future value of an investment
Summary of Key Equations
Chapter 2
Equation
Description
Formula
2.1
Fisher equation
i = r + Pe+ rPe
2.2
Fisher equation simplified
i = r + Pe
Chapter 5
Equation
Description
Formula
Future value of an n-period investment with
annual compounding
Future valu
Week 9 Tutorial Questions
Chapter 18 - 18.8, 18.10, 18.17, 18.18, 18.19 and 18.26
18.8
The enterprise value of TopOffice is:
VF = VE + VOther Securities = ($8.15 1.89 billion) + $100 billion = $115.4 billion
and the enterprise value/revenue ratio is:
$115
Revision
WEEK 13
1
Holding period returns (HPR)
Total holding period return is simply
P+CF1
P CF1
RT = RCA +RI =
.
P0
P0
P0
Example: You purchased a share at $20 one year ago.
After you received $1 dividend, you sold the share at a
price of $24. What is
CF
n
1 i
1
i
n
1 i
1
CF
i
FVFactor 1
CF
i
CF FVAnnuityF actor
Summary of Key Equations
FVAn
Chapter 2
6.2
Equation
Description
Fisher equation
i = r + Pe+ rPe
2.2
Fisher equation simplified
6.3
Present value of a perpetuity
Formula
2.1
Future value of an
Tutorial 7
Chapter 12:
Critical Thinking Questions: 12.1
Questions and Problems:
Basic: 12.3
Moderate: 12.14, 12.15, 12.16, 12.20, 12.23
Challenging: 12.25, 12.31
CTQ
12.1
You are involved in the planning process for a company that is expected to have
a l
Week 12
Chapter 21
Critical Thinking questions: 21.4, 21.5, 21.6, 21.8
Questions and Problems:
Basic: 21.1, 21.2, 21.5, 21.6, 21.7, 21.11, 21.15
Moderate: 21.19, 21.21
CTQ
21.4
A Canadian cooperative of wheat farmers sold wheat to a grain company in Russi
Lecture Week 10: Capital structure, management and payout policy
Chapter 15: 15.3, 15.4
Chapter 16: 16.5, 16.8, 16.17, 16.28
Chapter 17: 17.7, 17.12, 17.13, 17.14
15.3
Venture capital: What are some viable exit strategies for a start-up
company?
A company
Lecture Week 11: Options
Critical Thinking Questions (CTQ): 20.3, 20.6
Questions and Problems:
Basic: 20.3, 20.4, 20.5, 20.6, 20.7, 20.8, 20.9, 20.14
Moderate: 20.19
CTQ 20.3
An American option will never be worth less than a European option. Evaluate
thi
Cash Flows and Capital
Budge3ng
WEEK 3
Chapter 11
1
Capital budgeting method-recap
NPV: net present value
Calcula'ng procedure
Es'mate future cash ows
Determine the investors cost of capital or required rate of return
Calculate the present
Week 9 Tutorial Questions
Chapter 18 - 18.8, 18.10, 18.17, 18.18, 18.19 and 18.26
Chapter 19 - 19.7, 19.10, 19.13, 19.16, 19.30
18.8
Multiples analysis: It is 15 August 2013, and your company is considering the
possibility of purchasing the OfficeExpress
Tutorial 4
Chapter 12:
Critical Thinking Questions: 12.1
Questions and Problems:
Basic: 12.3
Moderate: 12.14, 12.15, 12.16, 12.20, 12.23
Challenging: 12.25, 12.31
CTQ
12.1
You are involved in the planning process for a company that is expected to have
a l
DEPARTMENT OF
ACCOUNTING AND
CORPORATE
GOVERNANCE
Faculty of Business
and Economics
ACCG200 | Case Study |
Session 1, 2017
CASE STUDY PRESENTATION (10%)
Case Study
Case Study Presentation (10%)
Case study presentation 20%
Students are required to analyse
Final exam details
2 Hours with 10 minutes reading time.
You may bring in one hand written A4 double sided cheat sheet.
15 Multiple Choice (40 Marks)
10 Multiple choice spread over all topics (2 marks each)
5 Multiple Choice (4 Marks each) relating to ris