University of Wollongong - FIN 222: Corporate Finance

The objective of this subject is to provide an introduction to the fundamental quantitative techniques and underlying concepts and theories in investment, financing and working capital management decisions facing corporations. For students to successfully complete this subject, students are required to be able to compute, interpret and apply a range of quantitative measures in order to assist in making optimal financial decisions as well as understand the fundamental concepts and theories in finance. The main topics covered in this subject include financial mathematics, valuation of financial and productive assets, risk and return, cost of capital, working capital management, capital structure and dividend policy.

✔ Learning outcomes:

On successful completion of this subject, you will be able to: 

• demonstrate an understanding of how financial systems work and calculate the value of different types of cash flow streams including financial assets such as shares and bonds;
• demonstrate an understanding of risk, return and the Capital Asset Pricing Model and be able to quantify risk and return and calculate the cost of equity;
• evaluate the value of productive assets using a range of capital budgeting techniques;
• calculate the cost of capital and other quantitative measures used in working capital management decision;
• compute, interpret and apply diverse quantitative measures in making an optimal and socially responsible investment decision; and,
• explain capital structure and dividend policy and their impact on the value of a company.