Moodle

Welcome to BUS5002 Business Finance

Dear students,

Welcome to BUS5002 Business Finance. This unit introduces the fundamental theories, principles, and techniques of managerial finance, with a focus on corporate financial decision-making and the goal of maximising stakeholder wealth, particularly for shareholders. We will examine the three major decisions made by managers, including investment, financing, and dividend policy, through both theory and applied problem-solving.

You will study core concepts such as the time value of money, security valuation, capital budgeting, portfolio theory, and the capital asset pricing model. The unit also addresses financing decisions including capital structure and working capital management. We will build practical skills in applying tools like discounted cash flow techniques and risk–return analysis to real-world financial problems.

There are three assessments in this unit:

• Assessment 1 Quiz (20%): after attempting two practice quizzes (ungraded) 
• Assessment 2 Briefing Paper (30%)
• Assessment 3 Business Report (50%)

To get started, please familiarise yourself with the Assessment Instructions and Unit Descriptor. For each module, follow the guidance provided in its module block. Please attend the weekly live interaction sessions to make the most of the unit, ask questions, and seek clarification with your facilitator. I hope you gain valuable knowledge of the finance world through this unit and develop a lasting interest in the subject.

At the completion of this unit, students should be able to:

1. Evaluate how businesses make financial decisions within the broader financial environment in which they operate.
2. Critically appraise and apply theories and models used in investment, financing, and dividend decisions.
3. Generate problem solving methodologies and apply options and recommendations for financial decisions using a combination of theories, tools, and models.
4. Apply capital structure theories and create dividend policies to solve problems involving various financial goals, dividends, risks, pricing, budgets, and policies.
5. Appraise the use of ethical principles for preparing financial information for stakeholders and shareholders.