Fundamentals of Business Finance
Area of Study
Business, Business Administration, Business Management, Finance, International Business
Taught In English
26100c Integrating Business PerspectivesOr equivalent
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 Credits4
Recommended U.S. Quarter Units6
Hours & Credits
OverviewDescriptionThe subject develops an understanding of the core principles of finance and their applications to financial decision-making. Topics include an overview of the financial markets, time value of money, valuation of securities, risk-and-return, capital budgeting decisions and financing decisions.Subject objectivesUpon successful completion of this subject students should be able to:1. discuss the types of financial decisions and the role of the financial manager2. examine financial instruments and their valuation3. explain the importance of the time value of money, risk and return and cash flow when making informed business decisions4. evaluate the concept of optimal capital structure and the factors influencing its determination.This subject also contributes specifically to the following program learning objectives:Apply technical skills necessary for professional practice in business (5.2)Contribution to the development of graduate attributesThe subject contributes to the Bachelor of Business by providing students with an introduction to finance. It exposes students to the issues and methodology for optimally allocating scarce financial and non-financial resources amongst competing alternatives. It introduces the appropriate tools and techniques to make informed financial decisions. This subject will develop skills linked to the Faculty?s graduate attribute that looks at developing business orientated skills.Teaching and learning strategiesThe teaching strategies and learning materials for Fundamentals of Business Finance have been developed for a culturally diverse student body. They incorporate a range of strategies to provide students with flexible learning approaches. These strategies include face-to-face instruction, tutorial discussion, and self-managed learning materials in print and electronic forms. Students will use UTS web-based facility to access relevant information and to interact with staff and peers.Content? Introduction to finance and objectives of the firm;? Time value of money;? Valuation of debt and equity securities;? Risk-and-return relationship;? Capital budgeting decisions: evaluation methods, cash flow analysis, incremental cash flows, issues in investment evaluation;? Financing decisions: sources of finances, financing mix, cost of capital, issues in capital structure choices;AssessmentAssessment task 1: In-class quizzes (Individual)Objective(s):This addresses subject learning objective(s):1, 2 and 3Weight: 20%Length:30 minutesAssessment task 2: Case Study (Group)Objective(s):This addresses subject learning objective(s):1 and 3Weight: 20%Assessment task 3: Final Exam (Individual)Objective(s):This addresses subject learning objective(s):1, 2, 3 and 4This addresses program learning objectives(s):5.2Weight: 60%Minimum requirementsStudents must achieve at least 50% of the subject?s total marks.
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.