BFA208 Unit Outline Financial Management

BFA208 Unit Outline Financial Management
Financial Management
Semester Two 2013
School of Accounting and Corporate Governance
Faculty of Business
Unit Outline
Dr Philip Lignier
CRICOS Provider Code: 00586B
Contact details
Unit coordinator and
Launceston lecturer:
Room number
Consultation hours:
Dr Philip Lignier
[email protected]
(03) 6324 3697
(03) 6324 3369
D117 (Launceston)
To be advised
Other teaching staff
Hobart lecturer:
Room number
Consultation hours:
To be advised
© The University of Tasmania 2013
Unit description _________________________________________________ 2
Learning outcomes and generic graduate attributes _____________________ 2
Alterations to the unit as a result of student feedback ____________________ 4
Prior knowledge and/or skills ______________________________________ 4
Learning resources required________________________________________ 4
Recommended reading ___________________________________________ 4
Library ________________________________________________________ 5
Details of teaching arrangements ____________________________________ 6
Lectures _______________________________________________________ 6
Tutorials _______________________________________________________ 7
Learning expectations and teaching strategies__________________________ 7
Expectations ____________________________________________________ 7
Teaching and learning strategies ____________________________________ 8
Specific attendance/ performance requirements ________________________ 8
Absence from class test ___________________________________________ 8
Assessment_____________________________________________________ 9
Assessment schedule ________________________________________ 9
Assessment Task 1: Tutorial participation (10%) __________________ 9
Assessment Task 2: Online assessment (15%)____________________ 10
Assessment Task 3: Multiple choice class test (15%) ______________ 10
Assessment Task 4: Final exam (60%) _________________________ 11
Completion of online assessment __________________________________ 11
Requests for extensions __________________________________________ 11
Penalties ______________________________________________________ 11
Academic referencing ___________________________________________ 11
Academic misconduct ___________________________________________ 13
How your final result is determined ________________________________ 13
Review of results and appeals _____________________________________ 13
If you need assistance ___________________________________________ 14
Unit description
This unit introduces students to the major concepts and analytical tools used in the theory and
practice of financial management in a business organisation. It is designed to provide you
with an understanding of:
 The scope and nature of the finance function and its role within management; and
 The theory of finance and how it underpins the evaluation of investment, financing
and dividend policies.
This unit also develops your practical skills in the identification and analysis of financial
problems. Specifically, this unit considers the role and objectives of financial management,
financial planning, working capital management, risk and return, capital budgeting, the capital
market, sources of finance, the cost of capital, operating and financial leverage, the financial
structure decision and dividend policy.
Student Feedback via eVALUate
At the conclusion of each unit, students will be asked to provide online responses to a number
of questions relating to matters regarding the Unit itself and to matters relating to the teaching
within that unit.
All students are asked to respond honestly to these questions, as all information received is
used to enhance the delivery of future offerings.
Learning outcomes and generic graduate attributes
See the table on the following page that sets out the Learning Outcomes, Criteria for
Assessment Tasks, Assessment Methods and Graduate Attribute Outcomes for this unit and
the links between them.
The University has defined a set of generic graduate attributes that can be expected of all
graduates, see
By undertaking this unit you should make progress in attaining the relevant attributes as
described in the following table.
Learning Outcomes
Assessment Criteria – In assessing this learning outcome I
will be looking at student ability to:
Explain the role of financial management
Explain the theoretical
underpinnings and processes in
financial decision making
Online assessment
Discuss the principles of risk and return in financial decisions
Online assessment
Explain portfolio theory, capital budgeting, capital structure and
dividend policy
Online assessment,
Class test
Explain the issues or considerations related to working capital
management and choice of capital structure
Online assessment
Identify financial models/ techniques/ formulae relevant to a
given situation
Online assessment
Class test
Determine the relevance of financial data and information to
financial analysis.
Online assessment
Select and apply correct financial techniques to financial
Online assessment
Class test
Graduate Attribute Outcomes
The assessments in this unit have been designed to develop the following
graduate attributes in students:
Knowledge :
Reasonably detailed knowledge of financial management and the ability to apply
knowledge to diverse business and related situations in both Australian and
international contexts
Lifelong learning skills in pursuit of professional development.
An understanding of the concept and process of lifelong learning.
Problem solving :
The ability to apply logical thinking to a range of finance management problems.
An awareness of when information is needed and the capacity to locate, analyse
and use relevant information.
Communication :
Apply concepts to financial
decisions that incorporate risk
and return
High level written communication skills in a range of formats, considering audience
needs and adapted to real world business situations
The ability to clearly and accurately communicate information in both oral and
written formats
Global perspective :
Communicate clearly and
accurately financial information
in a variety of business
Interpret the meaning of financial calculations
Online assessment
Tutorial participation
Critically evaluate analysis of financial data and calculations
Tutorial participation
Discuss solution to a financial problem in front of a group
Tutorial participation
Discuss theoretical financial issues or topical financial
information in front of a group
Tutorial participation
An awareness of the global business environment and the ability to evaluate and
incorporate its influence on financial practices and decisions.
Social responsibility :
The ability to apply the ethical requirements of University study. Awareness of the
responsibilities of financial decision makers to society and societal expectations of
Alterations to the unit as a result of student feedback
The general structure of the assessment in this unit has been altered to reduce the number of
assessments from five to four. Also assessment tasks have been better scheduled throughout
the semester. The completion of bi-weekly online assessment tasks will result in increased
flexibility in your workload and will enhance your progressive learning.
The written assignment has been replaced by a series of five online assessment tasks spread
out throughout the semester, with the highest three marks counting towards the final
assessment. The two class tests have been replaced by a single class test with a slightly higher
The overall weighting of the internal assessment remains unchanged.
Prior knowledge and/or skills
If you are studying BFA208 Financial Management, you need to have successfully completed
the prerequisite BFA103 Accounting and Financial Decision Making.
Learning resources required
Prescribed Package: (Textbook+ Electronic resource):
Gitman, L, Juchau, R & Flanagan, J 2011, Principles of Managerial Finance, 6th edn, Pearson
Education, NSW.
2-Textbook website – MyFinanceLab
The textbook website is where you will be completing your online assessment tasks (worth
15% of the unit mark in total).
MyFinanceLab is an online study tool designed by Pearson Education to enhance your
learning experience by offering you unlimited practice. The lab will test your knowledge,
help design your study plan and give you the learning tools you need to improve your grades.
The purchase of the textbook from the university bookshop will give you an access code to
register for this website. Details about the registration process will be provided during the first
For students who are buying the textbook from another source or hold a second hand edition,
access codes can be purchased directly from the publisher at a moderate cost.
For more information, go to the MyFinanceLab website:
Recommended reading
Parrino, R , Kidwell, D, Au Yong, H, Morkel-Kingsbury, N, Dempsey, M & Murray, J ,
2011, Fundamentals of Corporate Finance, John Wiley, Milton, Qld.
Fleet, W, Summers, J & Smith, B 2006, Communication Skills Handbook for Accounting, 2nd
edn, John Wiley & Sons: Brisbane.
Peirson, G, Brown, R, Easton, S, Howard, P, & Pinder, S, 2011, Business Finance, 11th edn,
McGraw-Hill, Sydney.
The University Library has an electronic database (Fin Analysis) that is extremely useful
when researching financial information on companies:
Access to Information Technology
Information in relation to campus and off-campus IT facilities and how to contact the Service
Desk are provided in the next section on MyLO.
My Learning On Line - MyLO
MyLO is an internet service that has been adopted by the University and will be used in this
unit. MyLO may be accessed on computers in computing laboratories at the University or on
your computer at home or at work. Information about accessing and using this service, about
required computer specifications and frequently asked questions, and about how to get help if
you experience difficulties, is available at the following University website:
You are strongly advised to visit this site and become familiar with the features of MyLO,
especially if you have not used it before. You will probably be using it in other units that you
are studying as well. Here are some important points about accessing our web site:
Access to MyLO
You can access your MyLO course from the Student Page on the University’s web site:
Quick Links MyLO or go directly to the web address noted above:
Enter your email POP account “Username” (for example, dsmith) and your
“Password”. These are identical to the pop account/email username and password
that you are given with your enrolment confirmation form. If you forget your pop
account username, contact the Help Desk (see below under ‘getting assistance with
MyLO). Both MyLO and e-mail passwords must remain the same. If you are going
to change your password, change your e-mail password first.
When you enter your user name and password, click on OK and choose “BFA281
from the list of units (subjects) in which you are enrolled. [NOTE: Another box may
periodically appear when using the University network which asks you to verify your
user name & password, this is simply a security device – enter your password when
asked and click OK].
o MyLO will automatically check that your browser is properly configured. If
the MyLO ‘browser checker’ window appears – scroll down to make sure you
have a tick in each area shown – then close the window.
From the unit’s homepage click on the area you wish to access e.g. “Unit
Information”. A table of contents will appear on the left hand side of your screen.
Scroll through the list until you find what you want and click the underlined topic.
MyLO expectations
Students are expected to maintain the highest standards of conduct across all modes of
communication, either with staff or with other students. Penalties may be imposed if the
Unit Coordinator believes that in any instance or mode of communication that your
language or content is inappropriate or offensive. MyLO in particular provides a public
forum. Due levels of respect, professionalism and high ethical standards are expected of
students at all times.
Submission of assessment tasks via MyLO presumes that students have read,
understood and abide by the requirements relating to academic conduct, and in
particular those requirements relating to plagiarism. All work submitted electronically is
presumed to be “signed-off” by the student submitting as their own work. Any breach of
this requirement will lead to student misconduct processes.
MyLO is an Internet service for teaching and learning provided by the University. As
much of the delivery of this unit will be available through MyLO, it is expected that
students will access the facility on a regular basis, preferably at least once per day.
Students are also expected to check their UTAS email site on a regular basis.
Students submitting requests or queries to staff via email should provide very clearly
their: Family name: Preferred name; Student ID; Unit code (i.e. BFA103) and allow
teaching staff at least 24 hours on business days to reply.
MyLO Facilities used for this unit
All lecture notes, tutorial questions, tutorial lists, assessment results and any other materials
used in the course will be placed on MyLO. This unit makes extensive use of the MyLO
facility so please check the site regularly for announcements, discussion and updates. You are
encouraged to pose questions via the MyLO discussion board rather than by e-mail to
teaching staff as this allows everybody in the unit to participate in the discussion.
Details of teaching arrangements
There is a 2 hour lecture once per week. Refer to the University timetable for times and
venues and the Study Schedule at the end of this outline. Lectures will consist of topic
summaries, explanations and demonstrations and will provide an overview of the theoretical
and applied aspects of the course content. However, they will constitute an introduction only.
In order to gain a full understanding of the subject matter you must complete all relevant
reading, participate actively in the tutorials and undertake additional exercises and problems
(i.e. learning through doing). Lecture Handouts are available on MyLO.
There is a 1 hour tutorial once per week beginning in Week 2. Refer to the University
timetable for times and venues. It is very important that you complete all the relevant reading
and attempt all the required exercises before attending each week’s tutorial. Details of the
weekly tutorial questions and exercises are available on MyLO.
Details of tutorial times are also available on MyLO. Further information about how you can
register for a particular tutorial will be provided during the lecture in Week 1. You must
attend the tutorial in which you are registered. Any change to your registered tutorial time
must be done in consultation with the Unit Coordinator. Failure to adhere to these
requirements could result in lower participation marks due to incomplete recording of your
tutorial participation.
The tutorials are designed to help ensure that you develop a fuller understanding of and an
ability to use the material that is covered by the text and presented in the lectures. The
motivation for tutorial participation assessment is to encourage students to prepare answers,
attend tutorials, and contribute to class discussion. Tutorial participation is worth 10% of the
final unit mark This, along with the fact that set questions covered in tutorials will be similar
in nature and difficulty to the problems in the end of semester exam, should provide sufficient
incentive for students to participate in tutorials. The tutorial review questions are generally
theoretical in nature and are important in aiding students’ learning of the subject matter and in
interpreting the calculations undertaken in problems. Articles from the financial press may
also be provided for discussion in tutorials.
Review questions and problems may be broken down into sub parts and questions may be
asked that have not been specifically set for preparation but nevertheless relate to the subject
matter. This tests students’ broader knowledge and their ability to apply the knowledge to
other situations including the real world.
Solutions to Tutorial review questions and/or problems will be available on MyLO after the
end of the respective tutorial week.
Learning expectations and teaching strategies
The University is committed to high standards of professional conduct in all activities, and
holds its commitment and responsibilities to its students as being of paramount importance.
Likewise, it holds expectations about the responsibilities students have as they pursue their
studies within the special environment the University offers.
The University’s Code of Conduct for Teaching and Learning states:
Students are expected to participate actively and positively in the
teaching/learning environment. They must attend classes when and as
required, strive to maintain steady progress within the subject or unit
framework, comply with workload expectations, and submit required work
on time.
Teaching and learning strategies
Although you are expected to take responsibility for your own learning, you are not on your
own. The lecturers and tutors are available to help facilitate this, and if you need additional
information refer to the Learning Development website:
One strategy that should help you achieve excellent results is that of organising your time so
that you spend between 12-14 hours per session studying this unit, such as:
Hours Per week
Class contact - lectures, tutorials etc
3 hours
Reading before class
2 hours
Consolidating material after class and practicing exercises
4 hours
Preparing for class, assessments and the exam
3 hours
It is strongly advised you work through the assigned questions and problems for the tutorials
prior to the respective tutorials in order to participate actively and confirm your
understanding of the various topics.
Specific attendance/ performance requirements
In order to pass the unit you must achieve an overall mark of at least 50 per cent. In addition
you must sit the class test (or have a satisfactory reason for not doing so, see below), and sit
the final examination.
Absence from class test
If you miss the class test for an acceptable reason (for example, if a medical certificate is
provided to the Unit Coordinator), the weighting for the test will be added to the weighting
for the final examination. In other words, the final examination will then be worth 70% of
your total assessment. Alternative test papers will not be set if you miss the class test. Work
commitments are considered to be an acceptable reason for missing the test.
Assessment schedule
Assessment task
Date due
Assessment Task 1: Tutorial participation
Weeks 2 to 13
Assessment Task 2: Online assessment
Week 3 to 13
Assessment Task 3: Multiple choice class test
During the Week 9 lecture
Assessment Task 4: End of semester exam
Assessment Task 1: Tutorial participation (10%)
Task Description
Students are required to participate in the discussion in tutorials.
If you are unable to attend your registered tutorial in a particular week due to illness, you
must attend another tutorial in that particular week. Ensure you advise the tutor in the
tutorial you are attending to assist with accurately recording your participation mark. If
this is not possible, then a medical certificate or other appropriate documentary evidence
covering the day of your registered tutorial as well as remaining tutorials during the week
of illness must be provided to the Unit Coordinator within two weeks of your registered
In cases of genuine inability to meet the participation requirement over the entire
semester, the 10 marks for tutorial participation may be reallocated to the final
examination (i.e. in such cases the final examination would be weighted 70% of the total
assessment). Students unable to meet the participation requirement must provide
documentary evidence of their inability to do so to the Unit Coordinator before the end
of the second week of the semester (i.e. by Friday, 26 July 2013). Arrangements in
relation to this matter will not be negotiated after this date.
Learning Outcomes and Assessment Criteria:
See Learning Outcomes and Assessment Criteria on page 3. A detailed assessment rubric
will be distributed in the first tutorial. You are advised to read this rubric carefully and ask
for clarification on anything you do not understand.
Due Date
Continuous assessment throughout the semester. To enable you to reflect on your own
progress, you are required to self-evaluate your participation and complete a tutorial
assessment rubric and submit it during the last tutorial in Week 13. (Rubrics will be
handed out in tutorials and available on MyLO.)
Assessment Task 2: Online assessment (15%)
Task Description
You are required to undertake five (5) online assessment tasks on MyFinanceLab
throughout the semester. The three (3) highest scores will be taken into account in
calculating the final mark for this assessment. Each task is worth 5% of the total
assessment mark.
The completion of this assessment requires access to MyFinanceLab, the online leaning
website accompanying the prescribed textbook (refer to page 4 of this unit outline).
Task Length
Each assessment task has a limited duration as specified by the website
Learning Outcomes and Assessment Criteria:
Refer to table on page 3.
Date Due
Specific online tasks due: Week 3, Week 5, Week 8, Week 10 and Week 12.
9.4 Assessment Task 3: Multiple choice class test (15%)
Task Description
Multiple choice test held during lecture time.
Task Length
The precise number of questions and time allowed to complete each test will be advised at
least 2 weeks before the due date.
Learning Outcomes and Assessment Criteria:
Refer to the table on page 3.
Date Due
During lecture time of week 9 (starting 16 September).
9.5 Assessment Task 4: Final exam (60%)
Task Description:
The final exam will be a closed book exam. You will need a non-progammable calculator to
complete the exam. Financial calculators are permitted.
Learning Outcomes and Assessment Criteria:
Refer to table on page 3.
Task Length:
Limited by time: 3 hours + 15 minutes reading time.
Completion of online assessment
Online assessment tasks will be made available on MyFinanceLab two weeks before the
due date. Completion of these assignments tasks will require you to log in using the access
code available with the purchase of the textbook or purchased directly from the publisher.
All assessment tasks must be completed individually within the set duration time. Each
assessment task needs to be completed in one session. However you will be able to resume
access if your attempt is interrupted. You will be able to review your answers immediately
after submitting but no printing of the test and answers will be allowed. After submission, a
summary of scores and correct test answers will be displayed.
Under no circumstances, can you be granted a second chance to undertake the same test.
Requests for extensions
Requests for extensions must be consistent with Faculty policy (Para 4) below. The relevant
form to apply for an extension is available on MyLO and at
If you fail to complete an assessment task before the set deadline and an extension request has
not been made prior to deadline, you will not be given any opportunity to undertake the
assessment task at a future date.
If you submit less than three (3) assessment tasks during the semester, a zero mark will be
awarded for each missing assessment task.
Academic referencing
In your written work you will need to support your ideas by referring to journals, books,
websites and other scholarly literature.
It is important that you understand how to correctly refer to the work of others and maintain
academic integrity.
Failure to appropriately acknowledge the ideas of others constitutes academic dishonesty
(plagiarism), a matter considered by UTAS as a serious offence.
The appropriate referencing style for the School of Accounting and Corporate Governance is
the Harvard style. For information on referencing styles, it is imperative that you:
a. Refer to the School’s website – Accounting Communication Matters at:
access the following UTAS Library site:
A link to the UTAS Library site also appears under “Useful Links” on the Student Resources
page of the School website.
Please read the following statement on plagiarism. Should you require clarification, please see
your unit coordinator or lecturer, or ask a member of the Library staff via:
Each unit MyLO site also has a direct link to the above site.
Plagiarism is a form of cheating. It is taking and using someone else's thoughts, writings
or inventions and representing them as your own; for example, using an author's words
without putting them in quotation marks and citing the source, using an author's ideas
without proper acknowledgment and citation, copying another student's work. If you
have any doubts about how to refer to the work of others in your assignments, please
consult your lecturer or tutor for relevant referencing guidelines, and the academic
integrity resources on the web at:
The intentional copying of someone else’s work as one’s own is a serious offence
punishable by penalties that may range from a fine or deduction/cancellation of marks
and, in the most serious of cases, to exclusion from a unit, a course or the University.
The University and any persons authorised by the University may submit your
assessable works to a plagiarism checking service, to obtain a report on possible
instances of plagiarism. Assessable works may also be included in a reference
database. It is a condition of this arrangement that the original author’s
permission is required before a work within the database can be viewed.
Academic misconduct
Academic misconduct includes cheating, plagiarism, allowing another student to copy work
for an assignment or an examination and any other conduct by which a student:
seeks to gain, for themselves or for another person, any academic advantage or
advancement to which they or that other person are not entitled; or
improperly advantages any other student.
Students engaging in any form of academic misconduct may be dealt with under the
Ordinance of Student Discipline, and this can include imposition of penalties that range from
a deduction/cancellation of marks to exclusion from a unit or the University. Details of
penalties that can be imposed are available in Ordinance 9: Student Discipline – Part 3
23991/ord91.pdf .
For further information on this statement and general referencing guidelines, see or follow the link under ‘Policy, Procedures and
Feedback’ on the Current Students homepage.
How your final result is determined
Your final result is calculated by adding your total assessment results to the final exam score.
You must achieve an overall mark of at least 50 per cent.
Review of results and appeals
Review of internal assessment
It is expected that students will adhere to the following School Policy for a review of any
piece of continuous/internal assessment.
As well as including any assessment task undertaken across the teaching phase of any unit
(such as an assignment, a tutorial presentation, an online discussion, and the like), the term
internal assessment also includes any task such as a capstone assignment or a take-homeexamination conducted within a non-face-to-face unit.
Within 5 days of the release of the assessment result, a student may request a meeting with the
assessor for the purpose of an informal review of the result (Academic Assessment Rule No 2
Clause 22 ).
During this meeting, the student should be prepared to discuss specifically the marks for the
section/s of the marking criteria they are disputing and why they consider their mark/s is/are
inappropriate. The assessor shall provide a response to the request for review either at the
meeting or within 5 days. If the student is dissatisfied with the response, he/she may, within 5
days of the response, request the Head of School to arrange for a formal review of the
assessment by completing and lodging with the School a ‘Review of Assessment Form’.
Review of final result
You may also request a review of the final result (assessment) in this unit. This would usually
involve a review of your final examination script.
Step 1: You may request to see your examination script after results have been released, by
completing the “Access to Exam Script” form available from the School office or at
Step 2: Your Unit Coordinator will then contact you within 5 working days to arrange a time
to go through the examination script with you (you will need to ensure that you check your
UTAS email account regularly during this time).
Step 3: Should you still require a review/remark of your final result, a formal request (and
payment if relevant) must be made ONLY after completing Step 2 and, to comply with UTAS
policy, within 10 days from the release of the final grade (Academic Senate Rule 2: Academic
Assessment Clause 23). You will need to complete a form “Application for Review of
Assessment” available on-line:
ment.pdf . Note that if you have passed the unit, then you will be required to pay $50 for this
The School of Accounting and Corporate Governance reserves the right to refuse a
student request to review the final examination script should this process not be
If you need assistance
In the first instance you should discuss the matter with your unit coordinator, lecturer or tutor.
However, if you do not feel comfortable approaching one of these people, or if you have a
discussion and are not satisfied with the outcome, then you are encouraged to contact the
major coordinator:
David Kronenberg
(03) 6226 2280
[email protected]
Discussions with the major co-ordinator will be kept in the strictest confidence. You are
always welcome to also raise issues with one of the Co-Heads of School, as appropriate:
David Kronenberg ([email protected])
Trevor Wilmshurst ([email protected])
David is located in Hobart and Trevor in Launceston. You may email either for an
If you wish to pursue the matter further, a student advocate may be able to assist you.
Information about the advocates is available at:
The University also has formal policies, and the following link gives you advice about the
procedures that you can follow:
Unit schedule
et al)
Tutorial Questions
and Problems
(Gitman et al.)
Role and environment
Financial statements and analysis
Cash flow & financial planning
Chapter 1
Chapter 2
Chapter 3
No tutorial
Time value of money
Chapter 4
See MyLo unit website
Risk and return
Online assessment task # 1 due 4 August
Chapter 5
See MyLo unit website
Bond valuation
Share valuation
Chapter 6
Chapter 7
See MyLo unit website
Capital budgeting and cash flows
Online assessment task # 2 due 18 August
Chapter 8
See MyLo unit website
Capital budgeting techniques
Chapter 9
See MyLo unit website
Capital budgeting – risk and refinements
Chapter 10
See MyLo unit website
Mid-semester break
Cost of capital
September Online assessment task # 3 due 15 Sept
Chapter 11
Assessment # 3: Class test
No lecture
See MyLo unit website
No tutorial
Dividend policy
September Online assessment task # 4 due 29 Sept
Chapter 12
See MyLo unit website
Working capital & current asset
September Current liabilities management
Chapter 14
Chapter 15
See MyLo unit website
Chapter 13
Chapter 16
Chapter 17
See MyLo unit website
Leverage and capital structure
Hybrid and derivative securities
Merger & acquisitions
Online assessment task #5 due 13 October
Unit Review
SWOTVAC 21 October
Examination period starts 26 October
See MyLo unit website
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