AF3313 Business Finance
Subject Code
:
AF3313
Subject Title
:
Business Finance
Level
:
3
Credits
:
3
Mode of Study
:
Lectures
Seminars
Pre-requisites
:
Financial Accounting (AF2108)
Accounting for Decision Making (AF2111) OR equivalent
Assessment
:
Coursework
Final Examination
40%
60%
Minimum Pass Grade
:
Coursework
Final Examination
(D)
(D)
28 hours
14 hours
ROLE AND PURPOSE
This subject aims to provide a solid and rigorous introduction to the basic fundamentals of finance. Topics covered in the module provide students with a foundation for other subjects and a foundation of professional-specific skills and knowledge. Students are expected to learn and understand Business Finance in the context of integrated business environment.
They will be able to analyse the financial function in business and its strategic role in corporate management. They will also develop strong analytical skills and critical thinking.
LEARNING OUTCOMES
On successfully completing this subject, students will be able to:
•
•
•
•
•
•
Describe the major function of financial managers;
Compare investment appraisal techniques and understand the limitations of those techniques; Evaluate the various sources of finance available in Hong Kong;
Examine the factors affecting capital structure and dividend policy and their effect on the cost of capital;
Interpret the key characteristics of working capital and its individual elements; and
Demonstrate how risk and uncertainty affects investment returns.
INDICATIVE CONTENT
Introduction
Firm’s goals and objectives. Time value of money.
Valuation of Securities
Shares and bonds.
Cost of Capital
Definition and component of cost of capital. Introduction to weighted average cost of capital.
AF3313 (2).doc
1
(Updated in Jan 08)
Capital Investment Techniques
Payback. Accounting rate of returns. Internal rate of returns. Net present value.
Comparisons of
:
AF3313
Subject Title
:
Business Finance
Level
:
3
Credits
:
3
Mode of Study
:
Lectures
Seminars
Pre-requisites
:
Financial Accounting (AF2108)
Accounting for Decision Making (AF2111) OR equivalent
Assessment
:
Coursework
Final Examination
40%
60%
Minimum Pass Grade
:
Coursework
Final Examination
(D)
(D)
28 hours
14 hours
ROLE AND PURPOSE
This subject aims to provide a solid and rigorous introduction to the basic fundamentals of finance. Topics covered in the module provide students with a foundation for other subjects and a foundation of professional-specific skills and knowledge. Students are expected to learn and understand Business Finance in the context of integrated business environment.
They will be able to analyse the financial function in business and its strategic role in corporate management. They will also develop strong analytical skills and critical thinking.
LEARNING OUTCOMES
On successfully completing this subject, students will be able to:
•
•
•
•
•
•
Describe the major function of financial managers;
Compare investment appraisal techniques and understand the limitations of those techniques; Evaluate the various sources of finance available in Hong Kong;
Examine the factors affecting capital structure and dividend policy and their effect on the cost of capital;
Interpret the key characteristics of working capital and its individual elements; and
Demonstrate how risk and uncertainty affects investment returns.
INDICATIVE CONTENT
Introduction
Firm’s goals and objectives. Time value of money.
Valuation of Securities
Shares and bonds.
Cost of Capital
Definition and component of cost of capital. Introduction to weighted average cost of capital.
AF3313 (2).doc
1
(Updated in Jan 08)
Capital Investment Techniques
Payback. Accounting rate of returns. Internal rate of returns. Net present value.
Comparisons of