This unit (BAO7001) explores advanced financial decisions of corporate managers. The unit expands on the traditional project evaluation criteria by introducing real options and valuation techniques in the presence of uncertainty. Students will demonstrate the correct use of debt and equity as financing instruments and how to assess leases and evaluate exposures to risk. The unit also provides examples of how to hedge a company's cash flow and balance sheet from both domestic and international exposures. Students are exposed to authentic case studies to demonstrate the application of advanced financial decision making to real-life examples using research methodologies and data sets in corporate finance research. Through case study research, students will propose how organisations can employ different risk management instruments to hedge against financial risks
Unit details
Study level:
Postgraduate
Credit points:
12
Unit code:
BAO7001
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Learning Outcomes
| 1. | Explicate research methodologies and data sets commonly utilised in research in corporate finance; | ||
| 2. | Critically evaluate issues that arise when raising debt finance and leasing arrangements; | ||
| 3. | Justify financial decision-making through demonstration of correct use of analytical tools and frameworks; | ||
| 4. | Critically review and evaluate the exposures to risk; and, | ||
| 5. | Propose how organisation can employ different risk management instruments to hedge against financial risks. |
Assessment
Melbourne campuses
Students studying under the VU Block Model.
| Assessment type | Description | Grade |
|---|---|---|
| Assignment | A research assignment on financial data on raising capital | 30% |
| Case Study | Case Study on Strategic Financial management | 30% |
| Project | Develop a financial plan and perform risk assessment of a project | 40% |
Other locations
| Assessment type | Description | Grade |
|---|---|---|
| Assignment | Raising debt finance (500 words) | 10% |
| Case Study | Application of advanced financial decision making to real-life business examples (2000 words) | 40% |
| Exercise | Appropriate use of debt and equity financing instruments (2500 words) | 50% |
Required reading
Principles of Corporate Finance,
Richard A. Brealey, Stewart C. Myers, Franklin Allen, (2019),
Mc Graw Hill.
Where to next?
As part of a course
This unit is studied as part of the following courses. Refer to the course page for information on how to apply for the course.
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