Principles of Finance

University of Melbourne

Course Description

  • Course Name

    Principles of Finance

  • Host University

    University of Melbourne

  • Location

    Melbourne, Australia

  • Area of Study

    Business, Finance

  • Language Level

    Taught In English

  • Prerequisites

    MAST10012 - Introduction to Mathematics

  • Course Level Recommendations

    Lower

    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.

    Hours & Credits

  • Host University Units

    12.5
  • Recommended U.S. Semester Credits
    3 - 4
  • Recommended U.S. Quarter Units
    4 - 6
  • Overview

    This subject introduces students to the key concepts of finance. Topics include: time-value-of-money, risk and return, present value, capital budgeting, diversification, asset allocation, capital asset pricing model, leverage, risk management and the types and sources of financing. This subject is the first in the sequence of finance subjects offered within the faculty and has a coverage and treatment of material which is suitable not only for students wishing to pursue further studies in finance but also for students from other disciplines who are interested in a single course in finance.

    Intended learning outcomes

    -On successful completion of this subject students should be able to:

    -Use financial mathematics to solve basic financial problems

    -Apply alternative capital budgeting techniques for project evaluation purposes

    -Explain the role of risk and return in the asset allocation decision and the pricing of risky assets

    -Distinguish between the different sources of financing including short term debt, long term debt and equity

    -Discuss the issues and choices involved in a firm’s capital structure decision

    -Discuss the issues and choices involved in a firm’s distribution decision

    -Explain how options can be used to manage basic financial risks

Course Disclaimer

Courses and course hours of instruction are subject to change.

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.