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BFB2140 · Business finance

Official Handbook

2027 Handbook6 credit pointsLevel 2Department of Banking and Finance

Last checked: 30 Sep 2026 UTC

Overview

The aim of the unit is to introduce you to the theory and application of why and how value enhancing corporate financial decisions are made and implemented. With the emphasis on publicly listed companies, topics covered include: the corporate objective of management; investment evaluation models; valuation of equity and debt instruments; sources and types of funding; issues in risk and return; portfolio theory; asset pricing models; issues in capital structure and dividend policy; and the efficiency of capital markets. The unit is designed to ensure that you gain the necessary skill set for making value-changing financial decisions to maximise firm value.

Offerings

CampusTeaching periodMode
PeninsulaFirst semesterTeaching activities are on-campus (ON-CAMPUS)

Assessment

The Handbook lists an examination for this unit.

#AssessmentTypeWeightHurdle
11 - ExerciseExercise35%—
22 - DemonstrationDemonstration15%—
33 - ExaminationExamination50%—

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

  1. apply different valuation techniques based on time value of money on equity and debt instruments
  2. evaluate investment decisions for domestic and international projects using tools based on the time value of money
  3. explain portfolio theory and show how the theory can be extended to price risky assets
  4. develop the skills to estimate the appropriate cost of capital for investment appraisal purposes
  5. evaluate firm capital structure and payout policy.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

ActivityDuration
Tutorials24 hours
Seminars12 hours

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