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    Overview

    Introduction to some basic characteristics of financial markets. The time value of money, calculations of fair value for bonds and stocks, criteria for financing a business, risk-return trade-offs, regulatory frameworks and ethical considerations are included.

    About this paper

    Paper title Financial Decision Making
    Subject Business Studies
    EFTS 0.15
    Points 18 points
    Teaching period(s) Semester 1 (On campus)
    Semester 2 (On campus)
    Domestic Tuition Fees ( NZD ) $937.50
    International Tuition Fees Tuition Fees for international students are elsewhere on this website.
    Restriction
    BSNS 108, PTWY 112
    Schedule C
    Commerce
    Notes
    This is a required paper for BCom from 2017 (to be taken in place of BSNS108 by students completing under earlier regulations).
    Contact

    Semester One and Two: Isabella Yoon

    Teaching staff

    Semester One and Two: Isabella Yoon

    Paper Structure
    • Quiz 1, Quiz 2, Quiz 3 and Quiz 4 - 2.5% each
    • Midterm Exam - 35%
    • Final Exam - 55%
    Teaching Arrangements

    3 hours of lectures and a 50-minute tutorial per week.

    Textbooks

    Required:

    Parrino, Kidwell, Yong, Dempsey, Morkel-Kingsbury, Ekanayake, James, Murray Business Finance, 1 st edition. Available at the library.

    Recommended:

    Timothy Crack. How to ace your business finance class. Available at the library.

    Course outline

    View the course outline for BSNS114

    Graduate Attributes Emphasised
    Critical thinking, Self-motivation.
    View more information about Otago's graduate attributes.
    Learning Outcomes

    Upon successful completion of this paper, you should be able:

    • To be financially literate.
    • To understand the basic characteristics of companies and capital markets.
    • To understand time value of money and how it affects financial decisions at the personal and organisational level.
    • To understand bonds and stocks, including the calculation of their fair value.
    • To understand concepts and calculation of the simple models for free cash flows for a business project.
    • To critically analyse business investment decisions.
    • To understand the trade-off between risk and return for investors.
    • To understand the factors affecting a company's decision to borrow from debtholders versus raising money from shareholders.

    Timetable

    Semester 1

    Location
    Dunedin
    Teaching method
    This paper is taught On Campus
    Learning management system
    Blackboard

    Lecture

    Stream Days Times Weeks
    Attend
    A1 Tuesday 12:00-13:50 9-13, 15-22
    Thursday 12:00-12:50 9-13, 15-16, 18-22

    Tutorial

    Stream Days Times Weeks
    Attend one stream from
    A1 Monday 09:00-09:50 10-13, 15-22
    A2 Monday 12:00-12:50 10-13, 15-22
    A3 Monday 16:00-16:50 10-13, 15-22
    A4 Tuesday 09:00-09:50 10-13, 15-22
    A5 Tuesday 14:00-14:50 10-13, 15-22
    A6 Wednesday 10:00-10:50 10-13, 15-22
    A7 Wednesday 13:00-13:50 10-13, 15-22
    A8 Thursday 15:00-15:50 10-13, 15-16, 18-22
    A9 Thursday 16:00-16:50 10-13, 15-16, 18-22
    A10 Friday 09:00-09:50 10-12, 15-22
    A11 Friday 10:00-10:50 10-12, 15-22
    A12 Friday 11:00-11:50 10-12, 15-22
    A13 Friday 12:00-12:50 10-12, 15-22
    A14 Friday 13:00-13:50 10-12, 15-22
    A15 Thursday 15:00-15:50 10-13, 15-16, 18-22
    A16 Wednesday 14:00-14:50 10-13, 15-22

    Semester 2

    Location
    Dunedin
    Teaching method
    This paper is taught On Campus
    Learning management system
    Blackboard

    Lecture

    Stream Days Times Weeks
    Attend
    A1 Tuesday 12:00-13:50 29-35, 37-42
    Thursday 09:00-09:50 29-35, 37-42

    Tutorial

    Stream Days Times Weeks
    Attend one stream from
    A1 Monday 09:00-09:50 30-35, 37-42
    A2 Monday 13:00-13:50 30-35, 37-42
    A3 Monday 14:00-14:50 30-35, 37-42
    A4 Monday 15:00-15:50 30-35, 37-42
    A5 Monday 16:00-16:50 30-35, 37-42
    A6 Tuesday 09:00-09:50 30-35, 37-42
    A7 Tuesday 11:00-11:50 30-35, 37-42
    A8 Tuesday 15:00-15:50 30-35, 37-42
    A9 Tuesday 16:00-16:50 30-35, 37-42
    A10 Wednesday 09:00-09:50 30-35, 37-42
    A11 Wednesday 12:00-12:50 30-35, 37-42
    A12 Wednesday 16:00-16:50 30-35, 37-42
    A13 Thursday 12:00-12:50 30-35, 37-42
    A14 Thursday 13:00-13:50 30-35, 37-42
    A15 Thursday 16:00-16:50 30-35, 37-42
    A16 Friday 09:00-09:50 30-35, 37-42
    A17 Friday 10:00-10:50 30-35, 37-42
    A18 Friday 12:00-12:50 30-35, 37-42
    A19 Friday 13:00-13:50 30-35, 37-42
    A20 Friday 14:00-14:50 30-35, 37-42
    A21 Friday 15:00-15:50 30-35, 37-42
    A22 Friday 16:00-16:50 30-35, 37-42
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