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FNCE10002 Principles of Finance,2017 http://handbook.unimelb.edu.

au/view/2017/FNCE10002

FNCE10002 Principles of Finance


Credit Points: 12.5

Level: 1 (Undergraduate)

Dates & Locations:


2017, Parkville
This subject commences in the following study period/s:
Semester 1, Parkville - Taught on campus.
Semester 2, Parkville - Taught on campus.
Please note that the Semester 1 offering of this subject has an enrolment quota: 1900 places
only. Initial self-enrolment will be provisional, places will not be guaranteed until the selection
process has been run. Students will be selected into the subject on a first-come, first-served
basis with preference given to students undertaking the subject as a compulsory subject in
their degree or a core subject in their major. Students taking the subject as breadth may be
withdrawn and should consider enrolling in the subject for Semester 2 instead.

Time Commitment: Contact Hours: Semesters 1 & 2: two hours of lecture and one hour of tutorial per week.
Summer Semester: 24 hours of lectures and 12 hours of tutorials. Total Time Commitment: 170
hours

Prerequisites:
A study score of at least 25 in Mathematical Methods in VCE Units 3 & 4 or equivalent
or Entry into the Bachelor of Commerce
or Successful completion of MAST10012 (../../view/current/MAST10012) Introduction to
Mathematics.

Corequisites: None

Recommended None
Background Knowledge:

Non Allowed Subjects:


Not available to students who are enrolled in or who have previously completed FNCE10001
(../../view/current/FNCE10001) Finance 1 or FNCE20001 (../../view/current/FNCE20001)
Business Finance

Core Participation <p>For the purposes of considering request for Reasonable Adjustments under the Disability
Requirements: Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic
requirements for this subject are articulated in the Subject Overview, Learning Outcomes,
Assessment and Generic Skills sections of this entry.</p> <p>It is University policy to
take all reasonable steps to minimise the impact of disability upon academic study, and
reasonable adjustments will be made to enhance a student's participation in the University's
programs. Students who feel their disability may impact on meeting the requirements of this
subject are encouraged to discuss this matter with a Faculty Student Adviser and Student
Equity and Disability Support: <a href="http://services.unimelb.edu.au/disability">http://
services.unimelb.edu.au/disability</a></p>

Coordinator:
Assoc Prof Asjeet S. Lamba, Assoc Prof Howard Chan

Contact:
Sem 1: asjeet@unimelb.edu.au (mailto:asjeet@unimelb.edu.au)
Sem 2: chanhw@unimelb.edu.au (mailto:chanhw@unimelb.edu.au)

Subject 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.

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

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FNCE10002 Principles of Finance,2017 http://handbook.unimelb.edu.au/view/2017/FNCE10002

# 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 firms capital structure decision
# Discuss the issues and choices involved in a firms distribution decision
# Explain how options can be used to manage basic financial risks

Assessment: One indiviudal homework assignments to be assessed online not exceeding 750 words, due
weeks 4 to 6 (10%) Weekly tutorial participation, weeks 2 - 12, (10%) One 1 hour mid-semester
examination, mid-semester (20%) One 2 hour end-of-semester examination, end of semester
(60%) Hurdle requirement: To pass this subject students must pass the end of semester
examination.

Prescribed Texts: None

Breadth Options:
This subject potentially can be taken as a breadth subject component for the following courses:
# Bachelor of Arts (https://handbook.unimelb.edu.au/view/2017/B-ARTS)
# Bachelor of Biomedicine (https://handbook.unimelb.edu.au/view/2017/B-BMED)
# Bachelor of Environments (https://handbook.unimelb.edu.au/view/2017/B-ENVS)
# Bachelor of Music (https://handbook.unimelb.edu.au/view/2017/B-MUS)
# Bachelor of Science (https://handbook.unimelb.edu.au/view/2017/B-SCI)
# Bachelor of Design (https://handbook.unimelb.edu.au/view/2017/B-DES)
You should visit learn more about breadth subjects (http://breadth.unimelb.edu.au/
breadth/info/index.html) and read the breadth requirements for your degree, and should
discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date, http://enrolment.unimelb.edu.au/fees

Generic Skills:
On successful completion of this subject, students should have improved the following generic
skills:
# High level of development: problem solving; interpretation and analysis; critical thinking.
# Moderate level of development: oral communication; written communication; collaborative
learning; statistical reasoning; application of theory to practice; synthesis of data and other
information; evaluation of data and other information; accessing data and other information
from a range of sources.
# Some level of development: team work; use of computer software.

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