Undergraduate unit of study descriptions
Please Note:The Business School website (sydney.edu.au/business/ugunits) contains the most up to date information on unit of study availability and other requirements. Timetabling information for 2014 is available on this website (sydney.edu.au/business/timetable). Students can also refer to the University of Sydney's unit of study handbook (https://ssa.usyd.edu.au/ssa/handbook/uossearch.jsp) for the latest information regarding unit of study descriptions, assessment or other requirements.
FINC - Finance
FINC2011 Corporate Finance I
Credit points: 6 Session: Semester 1,Semester 2,Summer Main,Winter Main Classes: 1 x 2hr lecture and 1 x 1hr tutorial per week Assessment: Mid-semester exam (20%), major assignment (30%) and final exam (50%)
Note: Note: Study in Finance commences in second year. BUSS1020 (or ECMT1010), BUSS1040 (or ECON1001 and ECON1002) and BUSS1030 (or ACCT1001 and ACCT1002) are recommended for all students wanting to study Finance.
This unit provides an introduction to basic concepts in corporate finance and their application to (1) valuation of risky assets including stocks, bonds and entire corporations, (2) pricing of equity securities, and (3) corporate financial policy decisions including dividend, capital structure and risk management policies. Emphasis is placed on the application of the material studied and current practices in each of the topic areas.
FINC2012 Corporate Finance II
Credit points: 6 Session: Semester 1,Semester 2,Summer Early Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: Mid-semester exam (15%), essay (20%), and final exam (65%)
This unit builds on FINC2011 Corporate Finance I, by extending basic concepts in corporate financing, investing and risk management. The unit presents current theories of corporate financing and their practical application in corporate investment and capital budgeting. The unit also examines securities and securities markets with an emphasis on pricing, investment characteristics and their use by corporations to manage risk. The securities examined include: bonds and related fixed income products; futures and options. The goal of the unit is to broaden students' knowledge of corporate finance in preparation for further study in finance in 300 level courses.
FINC3011 International Financial Management
Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: 2x semester tests each (20%), tutorial participation (10%) and a final exam (50%)
Markets are increasingly globalised. There are very few businesses or industries that are not required to deal with issues such as foreign currency, foreign competition and direct investment. This unit is designed to allow students to extend their understanding of basic principles in finance to an international environment. Globalisation of markets introduces risks but also opens up profitable opportunities. Topics covered include: foreign currency valuation and markets; international parity conditions; measuring and managing foreign exposure; international portfolio management; capital budgeting and foreign direct investment; international tax management and international financing strategy.
FINC3012 Derivative Securities
Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: Applied project: group assignment (15%), assignment presentation (5%), mid-semester test (30%), and final examination (50%)
Note: Knowledge of calculus, regression, probability theory and random distributions are helpful for this subject
Options, futures and swaps are derivatives of underlying securities such as commodities, equities and bonds. These types of securities are increasingly used to manage risk exposure and as a relatively low-cost-way of taking a position in a security or portfolio. They are also being used as part of senior management compensation as a way of attempting to align the interests of shareholders with that of management. This unit is designed to provide an introduction to this important area of finance without requiring too high a level of mathematical sophistication. However, strong quantitative skills are an advantage in this subject.
FINC3013 Mergers and Acquisitions
Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week; Additional workshops as required. Assessment: Mid-semester exam (20%), individual case analysis (10%), group case study written (15%), group case study presentation (5%), and final exam (50%)
Mergers and acquisitions are a fundamental component of the corporate landscape. Students enrolling in this unit will study the economic and strategic drivers of corporate restructuring activity and their use in the design and analysis of restructuring transactions; evaluate the outcomes from restructuring transactions, both the theory based explanations and the empirical tests of the theories; learn to identify and value synergies in a restructuring transaction using several valuation methods; develop a detailed understanding of the design and economic impacts of deal structures used to effect corporate restructuring transactions; and analyse the process of merger arbitrage and its contribution to the outcome of restructuring transactions. This unit will, where possible, integrate learning outcomes in an academic and applied context, and develop an appreciation of the regulatory environment for restructuring transactions and the impact of these regulations on the process and outcomes of restructuring transactions.
FINC3014 Trading and Dealing in Security Markets
Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: Oral presentation and tutorialpParticipation (10%), mid-semester exam (15%), TradeLab assignment (10%), major assignment (20%), and final exam (45%)
This unit is concerned with the processes which turn orders into trades in securities markets, and the forces which mould and affect both order flow and order execution. The unit provides an introduction to some fundamental ideas about market design and structure. At the end of the unit, students should be able to understand (1) how the international markets for foreign exchange, swaps, bonds and equities are organised, (2) how trading is conducted in these markets and how these transactions are cleared, (3) how the markets are regulated, if they are supervised and what risks different counterparties face in these markets. The unit aims to equip students to independently analyse international investment and financing alternatives and to estimate expected returns and costs taking into account liquidity risk, price volatility and credit risk.
FINC3015 Financial Valuation: Case Study Approach
Credit points: 6 Session: Semester 1 Classes: 1x2hr lecture per week; 1x1hr workshop session per week Assessment: Case studies (35%), group project (25%), and final exam (40%)
This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures and some related accounting concepts. The subject aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real world corporate valuations.
FINC3017 Investments and Portfolio Management
Credit points: 6 Session: Semester 1,Semester 2,Summer Main Classes: 1x 2h lecture and 1x 1hr tutorial per week Assessment: 2 x reports (15% each), essay (15%) and final exam (55%)
Note: Students who achieved less than a credit in FINC2011 are advised not to attempt FINC3017 until they have completed FINC2012.
This unit is designed to provide a comprehensive analytical approach to the modern theory of investments. Topics covered include: mean-variance analysis; Markowitz type portfolio analysis; portfolio construction; asset pricing theories; market efficiency and anomalies; hedge funds and investment fund performance evaluation. Although analytical aspects of investments theory are stressed, there is also an equal amount of coverage on the practical aspects of portfolio management. Current research on investments is emphasised in the course.
FINC3018 Bank Financial Management
Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: Mid-semester exam (25%), assignment (25%), and final examination (50%)
The central objective of this unit is to expose students to the principles of commercial bank management. The unit examines the management of banks from the perspective of the techniques and approaches used in the measurement and management of bank risks. Topics that are covered include: the theory and practice of banking from a financial management perspective, interest rate and market risks, credit risk, asset management and liquidity risk, regulatory restrictions and financial management, performance analysis, investment and loan management strategies and portfolio modelling, liability and deposit management, and the financial management implications of new products and services, international banking, and other industry developments.
FINC3019 Fixed Income Securities
Credit points: 6 Session: Semester 1,Semester 2 Classes: 1x 2 hr lecture and 1x 1hr tutorial per week Assessment: Tutorial participation (10%), mid-semester exam (20%), group project (20%), and final exam (50%)
This unit is designed to provide a thorough grounding in fixed income securities, bond portfolio analysis and the use of closely related financial instruments in risk management. The unit begins with the basic analytical framework necessary to understand the pricing of bonds and their investment characteristics (introducing fundamental concepts such as duration, yield and term structure). This provides the building blocks for analysis of more complicated corporate and derivative securities. Sectors of the debt market, including treasury securities, corporate bonds, mortgage-backed securities, and convertible bonds are analysed. The use of derivatives and a selection of special topics in fixed income are also discussed.
FINC3020 Financial Risk Management
Credit points: 6 Session: Semester 2 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: Lab exercises (20%), group project (20%), mid semester exam (20%), and final exam (40%)
Risk is an integral part of financial decisions. Financial risk management is increasingly important and financial analysts must be prepared to assess the level of risk in the marketplace. This course explores the basic concepts of modelling, measuring and managing financial risks within the regulatory framework. Topics covered include market risk (value-at-risk and expected loss), credit risk (single name, portfolio, ratings and market based models, and credit derivatives), liquidity risk and operational risk. The course relies heavily on practically based computer laboratory exercises with emphasis on simulations, real life examples and case studies.
FINC3021 Mathematical Finance
Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week; Additional workshops as required. Assessment: Major assignments (20%), mid-semester exam (20%), group presentation (10%), and final examination (50%)
Note: This is a useful subject for students contemplating going on to study at honours level and/or undertake subsequent research degrees.
The principle objective of this unit is to introduce students to the basic elements of mathematical finance. Students are exposed to key areas in the modern theory of finance and corporate financial policy with specific emphasis on their development and analysis from a mathematical and statistical perspective. The unit provides much of the necessary mathematical background. Topics that are introduced from a more mathematical perspective include: principles of modern financial valuation and analysis; asset pricing theory and market efficiency; theory of portfolio selection and management; and measurement and management of financial risk.
FINC3022 Alternative Investments
Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: mid-semester exam (20%), major assignment (30%) and final exam (50%)
This unit examines the motivations and strategies behind investing in alternative assets. Alternative assets are non-traditional investments relative to the usual mix of stocks, bonds, and cash. The unit's main emphasis is on private equity, venture capital investments, and hedge funds. The key topics include fund raising for alternative investments, the private equity investment cycle, structures for alternative-asset investment vehicles, issues behind selecting and financing private firms, valuation of high-growth, illiquid investments, and how to exit from such investments. The subject also examines the major strategies employed by hedge fund managers.
FINC3023 Behavioural Finance
Credit points: 6 Session: Semester 1 Classes: 1x 2hr lecture and 1x 1hr tutorial per week Assessment: mid-semester exam (30%), group assignment (20%), and final exam (50%)
Behavioural Finance explores financial market 'anomalies' - factors that are not traditionally explained by efficient markets theory - such as why stock prices exhibit momentum and reversals, why large swings in stock prices occur over short time periods, and how individual investors differ from institutional investors.