UNIT INFORMATION

Disclaimer

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

ECF2222 Corporate Finance II
SCHOOL OF BUSINESS
Credit Points: 15
Prerequisites:
ECF1120 Finance I
 
Description:

Corporate finance involves the financial management of business entities. In this unit we investigate how managers make investment, financing, and dividend decisions.

Investment decisions are based on discounted cash flow techniques and their extensions. These extensions enable us to study a wide range of problems including: new investments, investments with unequal terms, optimal replacement, and project abandonment.

Corporate financing and dividend decisions are based upon the seminal works of Modigliani and Miller. In the first instance we see that simplifying assumptions about corporate taxes lead to naïve conclusions about both corporate financing (primarily debt and equity) and dividend policy. As these simplifying assumptions are removed to better align with real-world conditions, the conclusions move from naïve to controversial.

The current global business environment is complex. To best deal with this complexity, business managers have discovered that flexibility (of approach, of their products, and of their workforce) is extremely valuable. Real option theory is introduced towards the end of this unit as an emerging technique to value this flexibility.

 



Full Unit Outline

This Unit is part of the following Courses / Unit Sets
MAAAAIFinance Major
MIAAAEFinance Minor
MAAABKProject Development Major
MAAACRProject Development and Management Major
MAACCPPublic Practice Major - Bunbury
 
 
Disability Standards for Education (Commonwealth 2005)
For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes, Graduate Attributes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Student Equity, Diversity and Disability Service website:
http://intranet.ecu.edu.au/student/support/student-equity

Last Updated - Higher Education: 31/03/2010 VET: 31/03/2010