EFN412 Advanced Managerial Finance
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | EFN412 |
|---|---|
| Prerequisite(s): | EFN406 or BSN456 |
| Equivalent(s): | EFX412 |
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
Unit Outline: Semester 1 2027, Gardens Point, Internal
| Unit code: | EFN412 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN406 or BSN456 (EFN406 or BSN456 can be undertaken concurrent to EFN412) |
| Equivalent: | EFX412 |
| Coordinator: | Marco Elia | marco.elia@qut.edu.au |
Overview
This is an intermediate level unit which extends the study of financial management introduced in earlier units. You will be provided with an in-depth analysis of valuation and of the financial management of a business organisation. The unit develops further the framework necessary for the analysis of other and more advanced aspects of domestic and international business finance. With the growing sophistication of global financial markets, this unit provides an excellent base for you to pursue a career in the field.
Learning Outcomes
On successful completion of this unit you will be able to:
- Apply and interpret advanced knowledge of the finance theories, practices and markets used by financial managers to investigate complex business issues. [KS 1.1, 1.2]
- Design and justify capital structure, investment, and risk management decisions using appropriate financial models and quantitative analysis. [KS 1.2, HO 2.2]Relates to: PG Business Capabilities: HO (2.2), KS (1.2); PG Business Capabilities 2027: HO (2.2), KS (1.2)
- Evaluate the broader economic, governance, and sustainability implications of financial management decisions and exercise responsible professional judgement. [HO 2.2, SE 5.2]
Content
This unit covers three major areas related to the study of finance. The first results in students gaining knowledge of the asset pricing tools commonly used to value individual securities. The second area relates to understanding the firm's capital structure and how to apply the methods to value a firm. The third area relates to understanding the use and valuation of derivatives for risk management and to value the implicit option-features that show up in corporate finance.
QUT Business Capabilities (Postgraduate)
The content and assessment in this unit are aligned to a selection of the following set of QUT Business Capabilities, also known as Assurance of Learning Goals (AoLs). Developing these capabilities will assist you to meet the desired graduate outcomes set at QUT and equip you with the knowledge and skills to succeed in your chosen career.
Knowledge & Technical Skills (KS)
1.1 Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
1.2 Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge to investigate digitally enhanced business environments.
Higher Order Thinking Skills (HO)
2.1 Critically investigate complex, real-world business problems by analysing, evaluating, and synthesising discipline and professional practice knowledge.
2.2 Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.
Professional Communication (PC)
3.1 Use information and digital literacy skills to communicate effectively and professionally in written forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
3.2 Use information and digital literacy skills to communicate effectively and professionally in oral forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
Teamwork & Self (TS)
4.1 Exercise self- reflection and accountability in applying knowledge and skills to support continuous learning, adaptability and effective professional growth.
4.2 Apply collaborative capabilities to work effectively in diverse teams and across complex, interdisciplinary business environments.
Social, Ethical & Global Understanding (SE)
5.1 Demonstrate ethical reasoning and apply legal and governance principles to critically evaluate and respond to complex business decisions and practices.
5.2 Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Learning Approaches
In this unit, you will learn by engaging in weekly formal class contact time and appropriate self-study outside of class. You are expected to read the relevant material (textbook and notes), do the self-study questions provided and to review the lecture slides before attending the lecture. A weekly reading and tutorial guide can be found on the Canvas site. The reading guide indicates the material you should concentrate on, which material should be read lightly and which material should be studied in depth. Also included in the weekly guide are a number of self-study questions with solutions. These form an important part of the work in this unit and are a good indicator of possible examination questions.
Solutions to the weekly self-study questions will be provided in the weekly reading and tutorial guide and these will be discussed in the tutorial. Nevertheless, you should study this material before attending the tutorial so that effective use can be made of the time allocated to solve difficulties and discuss further issues. It is not the purpose of the tutorial to work through each question from scratch, but rather to resolve any problems or difficulties that arise from the week's work.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
- Direct: to individual students, either in written form or in consultation
- Indirect: to the whole class
Assessment
Overview
The assessment in this unit aims to support your achievement of the unit learning outcomes and course assurance of learning goals. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Report
You will write a report involving the application of Portfolio Theory and empirical estimation, addressing topics 1 to 5 inclusive.
The ethical and responsible use of generative artificial intelligence (GenAI) tools is authorised in this assessment. See the relevant assessment details in Canvas for specific guidelines.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.2), HO (2.2)
Assessment: Final Exam
You will answer questions covering all topics but with emphasis on topics 6 through 11 inclusive. The final paper will consist of short answer questions.
The use of generative artificial intelligence (GenAI) tools is prohibited during this assessment.
This invigilated examination requires attendance on campus or at an assessment centre, regardless of your attendance mode for the unit.
This assessment item is Verified Identity Assessment. Requirements are provided on the Unit Canvas site.
Formative or Summative: Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.2), SE (5.2)
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Resources
Resource Materials
Prescribed text(s)
Jonathan Berk and Peter DeMarzo, Corporate Finance, Global Edition, 6th Edition, Pearson, 2023
Recommended text(s)
Suggested Supplementary Textbooks (Optional)
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2007) Fundamentals of Corporate Finance. . (4th edn.)(4th edn.). McGraw Hill.
or
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2004) Fundamentals of Corporate Finance. (4th edn.). McGraw Hill.
Other
Other Resources
Additional references and resources, including lecture overheads, additional notes, weekly reading and tutorial guides, assignments and solutions can also be found at the unit's Canvas site: https://Canvas.qut.edu.au/.
There are several other suitable texts that you may wish to use. Two are listed below:
Brealey, R., Myers S., & Allen F. (2020) Principles of Corporate Finance. (13th ed.) McGraw Hill.
Bishop HR, Faff RW, Oliver B, and Twite GJ, (2004) Corporate Finance. (5th ed.), Prentice Hall
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with learning and teaching activities in this unit.
Standards/Competencies
This unit is designed to support your development of the following standards\competencies.
QUT Business Capabilities (Postgraduate)
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO2, Report, Final Exam
KS (1.2): Technical, Technological and Research Skills
Relates to: ULO1, ULO2, Report, Final Exam
SE (5.2): Global Social Responsibility
Relates to: ULO3, Final Exam
QUT Business Capabilities (Postgraduate) 2027
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO2, ULO3, Report, Final Exam
KS (1.1): Discipline Knowledge
Relates to: ULO1, Final Exam
KS (1.2): Technical and Technological Skills
Relates to: ULO1, ULO2, Report, Final Exam
SE (5.2): Global Social Responsibility
Relates to: ULO3, Final Exam
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.BS11 Master of Business
- Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues and critically reflect on the responsibilities and impacts of organisations in national and international business contexts.
Relates to: ULO3, Final Exam - Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise creativity and intellectual independence and make informed decisions and judgements in planning, designing, and executing strategic and research-based responses to address real world issues and problems.
Relates to: ULO2, Report, Final Exam
BS12 Master of Business
- Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
Relates to: ULO1, Final Exam - Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge in digitally enhanced business environments.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.
Relates to: ULO2, ULO3, Report, Final Exam - Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Relates to: ULO3, Final Exam
BS68 Graduate Diploma in Business
- Apply advanced interdisciplinary knowledge, including relevant research principles and methods to understand and respond to professional challenges.
Relates to: ULO1, Final Exam - Apply technical, digital, and research skills to organise, interpret, and evaluate discipline knowledge and practice to investigate business issues in digitally enhanced environments.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise innovative thinking and intellectual independence to make informed decisions and judgements in planning evidence-based responses to complex and evolving business contexts.
Relates to: ULO2, ULO3, Report, Final Exam - Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Relates to: ULO3, Final Exam
Unit Outline: Semester 1 2027, Online
| Unit code: | EFN412 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | EFN406 or BSN456 (EFN406 or BSN456 can be undertaken concurrent to EFN412) |
| Equivalent: | EFX412 |
Overview
This is an intermediate level unit which extends the study of financial management introduced in earlier units. You will be provided with an in-depth analysis of valuation and of the financial management of a business organisation. The unit develops further the framework necessary for the analysis of other and more advanced aspects of domestic and international business finance. With the growing sophistication of global financial markets, this unit provides an excellent base for you to pursue a career in the field.
Learning Outcomes
On successful completion of this unit you will be able to:
- Apply and interpret advanced knowledge of the finance theories, practices and markets used by financial managers to investigate complex business issues. [KS 1.1, 1.2]
- Design and justify capital structure, investment, and risk management decisions using appropriate financial models and quantitative analysis. [KS 1.2, HO 2.2]Relates to: PG Business Capabilities: HO (2.2), KS (1.2); PG Business Capabilities 2027: HO (2.2), KS (1.2)
- Evaluate the broader economic, governance, and sustainability implications of financial management decisions and exercise responsible professional judgement. [HO 2.2, SE 5.2]
Content
This unit covers three major areas related to the study of finance. The first results in students gaining knowledge of the asset pricing tools commonly used to value individual securities. The second area relates to understanding the firm's capital structure and how to apply the methods to value a firm. The third area relates to understanding the use and valuation of derivatives for risk management and to value the implicit option-features that show up in corporate finance.
QUT Business Capabilities (Postgraduate)
The content and assessment in this unit are aligned to a selection of the following set of QUT Business Capabilities, also known as Assurance of Learning Goals (AoLs). Developing these capabilities will assist you to meet the desired graduate outcomes set at QUT and equip you with the knowledge and skills to succeed in your chosen career.
Knowledge & Technical Skills (KS)
1.1 Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
1.2 Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge to investigate digitally enhanced business environments.
Higher Order Thinking Skills (HO)
2.1 Critically investigate complex, real-world business problems by analysing, evaluating, and synthesising discipline and professional practice knowledge.
2.2 Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.
Professional Communication (PC)
3.1 Use information and digital literacy skills to communicate effectively and professionally in written forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
3.2 Use information and digital literacy skills to communicate effectively and professionally in oral forms, using appropriate technologies and media for diverse purposes, audiences, and business contexts.
Teamwork & Self (TS)
4.1 Exercise self- reflection and accountability in applying knowledge and skills to support continuous learning, adaptability and effective professional growth.
4.2 Apply collaborative capabilities to work effectively in diverse teams and across complex, interdisciplinary business environments.
Social, Ethical & Global Understanding (SE)
5.1 Demonstrate ethical reasoning and apply legal and governance principles to critically evaluate and respond to complex business decisions and practices.
5.2 Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Learning Approaches
In this unit, you will learn by engaging in weekly formal class contact time and appropriate self-study outside of class. You are expected to read the relevant material (textbook and notes), do the self-study questions provided and to review the lecture slides before attending the lecture. A weekly reading and tutorial guide can be found on the Canvas site. The reading guide indicates the material you should concentrate on, which material should be read lightly and which material should be studied in depth. Also included in the weekly guide are a number of self-study questions with solutions. These form an important part of the work in this unit and are a good indicator of possible examination questions.
Solutions to the weekly self-study questions will be provided in the weekly reading and tutorial guide and these will be discussed in the tutorial. Nevertheless, you should study this material before attending the tutorial so that effective use can be made of the time allocated to solve difficulties and discuss further issues. It is not the purpose of the tutorial to work through each question from scratch, but rather to resolve any problems or difficulties that arise from the week's work.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary
- Direct: to individual students, either in written form or in consultation
- Indirect: to the whole class
Assessment
Overview
The assessment in this unit aims to support your achievement of the unit learning outcomes and course assurance of learning goals. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Report
You will write a report involving the application of Portfolio Theory and empirical estimation, addressing topics 1 to 5 inclusive.
The ethical and responsible use of generative artificial intelligence (GenAI) tools is authorised in this assessment. See the relevant assessment details in Canvas for specific guidelines.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.2), HO (2.2)
Assessment: Final Exam
You will answer questions covering all topics but with emphasis on topics 6 through 11 inclusive. The final paper will consist of short answer questions.
The use of generative artificial intelligence (GenAI) tools is prohibited during this assessment.
This invigilated examination requires attendance on campus or at an assessment centre, regardless of your attendance mode for the unit.
This assessment item is Verified Identity Assessment. Requirements are provided on the Unit Canvas site.
Formative or Summative: Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.2), SE (5.2)
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Resources
Resource Materials
Prescribed text(s)
Jonathan Berk and Peter DeMarzo, Corporate Finance, Global Edition, 6th Edition, Pearson, 2023
Recommended text(s)
Suggested Supplementary Textbooks (Optional)
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2007) Fundamentals of Corporate Finance. . (4th edn.)(4th edn.). McGraw Hill.
or
Ross, S. A., Thompson, S. C., Christensen, M. J., Westerfield, R. W., & Jordan, B. D. (2004) Fundamentals of Corporate Finance. (4th edn.). McGraw Hill.
Other
Other Resources
Additional references and resources, including lecture overheads, additional notes, weekly reading and tutorial guides, assignments and solutions can also be found at the unit's Canvas site: https://Canvas.qut.edu.au/.
There are several other suitable texts that you may wish to use. Two are listed below:
Brealey, R., Myers S., & Allen F. (2020) Principles of Corporate Finance. (13th ed.) McGraw Hill.
Bishop HR, Faff RW, Oliver B, and Twite GJ, (2004) Corporate Finance. (5th ed.), Prentice Hall
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with learning and teaching activities in this unit.
Standards/Competencies
This unit is designed to support your development of the following standards\competencies.
QUT Business Capabilities (Postgraduate)
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO2, Report, Final Exam
KS (1.2): Technical, Technological and Research Skills
Relates to: ULO1, ULO2, Report, Final Exam
SE (5.2): Global Social Responsibility
Relates to: ULO3, Final Exam
QUT Business Capabilities (Postgraduate) 2027
HO (2.2): Independent Judgement and Decision-Making
Relates to: ULO2, ULO3, Report, Final Exam
KS (1.1): Discipline Knowledge
Relates to: ULO1, Final Exam
KS (1.2): Technical and Technological Skills
Relates to: ULO1, ULO2, Report, Final Exam
SE (5.2): Global Social Responsibility
Relates to: ULO3, Final Exam
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.BS11 Master of Business
- Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues and critically reflect on the responsibilities and impacts of organisations in national and international business contexts.
Relates to: ULO3, Final Exam - Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise creativity and intellectual independence and make informed decisions and judgements in planning, designing, and executing strategic and research-based responses to address real world issues and problems.
Relates to: ULO2, Report, Final Exam
BS12 Master of Business
- Demonstrate and apply advanced, integrated discipline and professional practice knowledge, including relevant research principles and methods, to address complex and evolving business challenges.
Relates to: ULO1, Final Exam - Leverage digital technologies, data-driven tools, technical and research skills to organise, interpret and extend discipline and professional practice knowledge in digitally enhanced business environments.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise creativity and intellectual independence and make evidence-based decisions and judgements in planning, designing, and executing strategic responses to address real world business challenges.
Relates to: ULO2, ULO3, Report, Final Exam - Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Relates to: ULO3, Final Exam
BS68 Graduate Diploma in Business
- Apply advanced interdisciplinary knowledge, including relevant research principles and methods to understand and respond to professional challenges.
Relates to: ULO1, Final Exam - Apply technical, digital, and research skills to organise, interpret, and evaluate discipline knowledge and practice to investigate business issues in digitally enhanced environments.
Relates to: ULO1, ULO2, Report, Final Exam - Exercise innovative thinking and intellectual independence to make informed decisions and judgements in planning evidence-based responses to complex and evolving business contexts.
Relates to: ULO2, ULO3, Report, Final Exam - Apply socially responsible and sustainability-focused thinking to analyse business issues and reflect on the broader impact of organisations in national and global contexts.
Relates to: ULO3, Final Exam