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 ) | $1,053.30 |
| 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
- More information link
- View more information on the Otago Business School's website
- Teaching staff
Semester One: Dr Anindya Sen
Semester Two: Dr Isabella Yoon- Teaching Arrangements
3 hours of lectures and a 50-minute tutorial per week.
- Textbooks
Required:
Fundamentals of Corporate Finance, 4th Edition 9780730382577. Available at the library.
Recommended:
Timothy Crack. How to ace your business finance class. Available at the library.
- Course outline
- 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.
- Assessment details
- Quiz 1, Quiz 2, Quiz 3 and Quiz 4 - 2.5% each
- Midterm Exam - 35%
- Final Exam - 55%
Timetable
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 | Tuition Fees for 2027 have not yet been set |
| 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
- More information link
- View more information on the Otago Business School's website.
- Teaching staff
Semester One: Dr Anindya Sen
Semester Two: Dr Isabella Yoon- Teaching Arrangements
Three hours of lectures and a 50-minute tutorial per week.
- Textbooks
Required:
Parrino, R., Morkel-Kingsbury, N., James, J., Yong, H. H. A., & Mazzola, P. (2020). Fundamentals of Corporate Finance (4th ed.). Jon WIley & Sons. ISBN: 9780730382577. Available at the library.Recommended:
Crack, T. (2017). How to Ace Your Business Finance Class: Essential Knowledge and Techniques to Master the Material and Ace Your Exams (3rd ed.). Available at the library.- Course outline
- 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.
- Assessment details
- Four quizzes: 2.5% each
- Midterm exam: 35%
- Final exam: 55%