AC4331 Corporate Financial Policy

Part I Course Duration : One Semester Credit Units : 3 Level: B4 Medium of Instruction: English Prerequisite(s) : FB3410 Financial Management or CB3410 Financial Management Precursors(s) : Nil Equivalent Course(s) : Nil Exclusive Course(s) : Nil Part II Course Aims: This course aims to: develop students knowledge and understanding of various financial management methods in analyzing alternative financial policies. develop students skills and techniques in making value-added financial decisions. Course Intended Learning Outcomes (CILOs) Upon successful completion of this course, students should be able to: No. CILOs* Weighting (if applicable) (1 = most important, 2 = secondary importance, 3 = least important) 1. Understand the relationship between risk and return and their relevance in financial decisions and valuation.   2. Analyze the financial consequences and risk of different financial policies.   3. Structure and present financial data in a coherent and easily understandable manner and demonstrate awareness to the usefulness and limitations of different quantitative financial models.   4. Prepare reports for management and communicate effectively in explaining and evaluating the financial consequences of different financial policies.   **(1 = most important, 2 = secondary importance, 3 = least important) Teaching and Learning Activities (TLAs) (Indicative of likely activities and tasks designed to facilitate students’ achievement of the CILOs. Final details will be provided to students in their first week of attendance in this course) CILO No. TLAS Hours/week (if applicable) CILO 1 CILO 2 Lectures to illustrate important concepts and to clarify main points in assigned readings. Numerical examples will be used to illustrate how to apply theoretical concepts to solve practical problems. 8-10 weeks CILO 3 In-class activities and assignments together with take-home assignments to assist students’ understanding of the applications of various financial models. 2-3 weeks CILO 4 Case analysis to assist students to integrate and apply their learning through evaluation and interpretation of a major financial decision. * 1-2 weeks * DEC TLA element Assessment Tasks/Activities (Indicative of likely activities and tasks designed to assess how well the students achieve the CILOs. Final details will be provided to students in their first week of attendance in this course) Coursework: 50% AT1 In-class and take-home assessment activities (5% - 20%)  AT2 Mid-term test(s) (20% - 30%) AT3 Case report(s) (10% - 25%)* * DEC AT element Examination: 50% AT4 A 3-hour written comprehensive examination Students are required to pass both coursework and examination components in order to pass the course CILO No. Type of Assessment Tasks/Activities Weighting (if applicable) Remarks CILO 1 AT1, AT2, AT4     CILO 2   CILO 3   CILO 4 AT3   Grading of Student Achievement :Refer to Grading of Courses in the Academic Regulations. CILO No. Excellent A+ A A- Good B+ B B- Adequate C+ C C- Marginal   D   CILO 1 Demonstrate a superior grasp of the relationship between risk and return and demonstrate excellent understanding of the relevance of risk and return in financial decisions and valuation. Demonstrate a good grasp of the relationship between risk and return and demonstrate good understanding of the relevance of risk and return in financial decisions and valuation. Demonstrate a good grasp of the relationship between risk and return and demonstrate basic understanding of the relevance of risk and return in financial decisions and valuation. Demonstrate a basic understanding of the relationship between risk and return and demonstrate some familiarity of the relevance of risk and return in financial decisions and valuation. CILO 2 Able to identify and analyze all major financial consequences and demonstrate excellent understanding of the risk related to different financial policies. Able to identify and analyze almost all major financial consequences and demonstrate good understanding of the risk related to different financial policies. Able to identify and analyze almost all major financial consequences and demonstrate basic understanding of the risk related to different financial policies. Able to identify and analyze some financial consequences and demonstrate some familiarity of the risk related to different financial policies. CILO 3 Able to present all relevant financial data concisely and demonstrate excellent understanding of the usefulness and limitations of different financial models. Able to present almost all relevant financial data concisely and demonstrate good understanding of the usefulness and limitations of different financial models. Able to present some relevant financial data concisely and demonstrate basic understanding of the usefulness and limitations of different financial models. Able to present some relevant financial data loosely and demonstrate some familiarity of the usefulness and limitations of different financial models. CILO 4 Demonstrate excellent interpretation of financial data and able to present all major financial consequences to management. Demonstrate good interpretation of financial data and able to present almost all major financial consequences to management. Demonstrate good interpretation of financial data and able to present some major financial consequences to management. Demonstrate fair interpretation of financial data and able to present some financial consequences to management. Part III Keyword Syllabus: Foundations of corporate finance, risk and return, valuations, cost of capital, capital budgeting, capital structure, distributions, financing, risk management.