Gold Coast, Australia
Area of Study
Business, Finance, Financial Management
Taught In English
Prerequisite: 1101AFE/1181AFE (Accounting Principles) for B Commerce OR 1102AFE/1182AFE (Accounting for Decision Making) for other business degrees.
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4 - 6
Hours & Credits
This course has a prerequisite requirement which means you MUST successfully complete the listed course or requirement/s BEFORE enrolling in this course. If you have enrolled in the course without meeting this requirement you MUST WITHDRAW immediately or contact the Program Director if you believe you have extenuating circumstances. It is our experience that students who have not completed the prerequisite course struggle to complete the course and often Fail as a result. It is your responsibility to have any Transfer Credit appearing on your academic transcript before enrolling. As business and commerce graduates you will follow career paths that will lead to owning your own business or being part of an organisation in a management role. This course provides the theoretical framework that will allow you to understand the goal of a financial manager and help you make financial management decisions. In this course you will learn concepts and models that are essential in the process of running a business, and which are applicable to the wealth creation and management of entities that range from major corporations to small businesses and individuals.
2201AFE Corporate Finance covers three main areas that corporate managers deal with: the investment decision, financing decision and dividend decision. These decisions help managers achieve the highest value for the firm ? the ultimate goal for the financial manager, and in this course you will learn the techniques and methods that assist managers achieve this goal.
This course is designed to give you an adequate basic knowledge of finance, which will be of use irrespective of the field of business in which you intend to major. At the same time, it will provide a foundation if you intend to engage in further studies in the field of finance. The skills acquired in this course will help you understand the accounting, marketing and management side of a business, as well as assist you in making individual economic decisions regarding matters like buying a car or a house, starting up a firm or retirement.Course AimsThe aim of 2201AFE Corporate Finance is to provide an introduction to the practical and theoretical principles of finance and, to equip you with the skills needed to make financial decisions in the context of the Australian institutional environment. On successful completion of this course you will develop an understanding of the theory and models that are the basis of Finance and develop skills that are of practical nature by applying these theories to the real world.Thus you will learn how to make: investment decisions through financial statement analysis, debt and equity valuation, project evaluation using discounted cash flow techniques; financing decisions through assessment of the risk-return relationship, cost of capital and financial leverage of a firm; and dividend decisions through the evaluation of the dividend policy of a company.The knowledge and skills developed in this course are essential and necessary for professionals in the field of finance, and desirable and sought-after for business graduates.Learning OutcomesAfter successfully completing this course you should be able to:1 Demonstrate an understanding of the basic finance principles by acquiring knowledge of the time value of money, cash flow discounting, risk-return relationship and portfolio diversification.2 Correctly identify, explain and discuss the theories and models used in investment, financing and dividend decisions.3 Apply the capital budgeting techniques in the evaluation of projects and make correct investment decisions.4 Appropriately select and apply the appropriate models in equity and bond valuation.5 Differentiate between the three capital structure theories and correctly apply each theory to solve financing decisions.6 Distinguish and categorise the various dividend policies used in theory and practice and apply appropriate policies to make dividend decisions.Assessment Summary
Test or quiz
Exam - selected response
Exam - constructed response
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.