Your company is planning to invest over US$10 million in the creation of a new product line. The CFO has asked you to prepare a report that describes the expected return-on-investment.

Program Overview

The course introduces students to the finance functions in an organisation. It includes strategic decisions of finance, financial planning and control, time value of money, capital budgeting techniques and asset acquisition decisions are explored. Students are also familiarised with capital expenditure decisions as part of long-term financial strategy, including risk exposure and unexpected changes in the value of investments.

Learning Outcomes

Upon completion of this subject, students should be able to :

  • Apply appropriate methods for valuing basic financial instruments
  • Use standardised risk measures to create appropriate discount rates for investments
  • Employ different methods to estimate the required rates of return on investments
  • Distinguish between the capital market and the market for real assets
  • Determine when to use different types of financial securities for financing
  • Apply capital structure theory to enhance the value of the firm and its investments
  • Determine the value of the firm according the impact of dividend payments

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