Curtin Finance 201: A Deeper Dive

Finance 201 at Curtin University builds upon the fundamental financial concepts introduced in introductory courses, providing students with a more advanced and practical understanding of financial decision-making in a corporate context. It's a crucial stepping stone for students aiming to pursue careers in investment banking, corporate finance, financial analysis, and related fields.

Core Concepts Covered

The course typically delves into topics such as:

• Time Value of Money: A more sophisticated examination of present and future value calculations, including annuities, perpetuities, and uneven cash flow streams. This is critical for project valuation and investment decisions.
• Risk and Return: Moving beyond basic definitions, the course explores risk measurement using beta, standard deviation, and variance. It examines the Capital Asset Pricing Model (CAPM) and other models used to determine required rates of return for investments.
• Capital Budgeting: This section focuses on techniques used to evaluate potential investment projects, including Net Present Value (NPV), Internal Rate of Return (IRR), and payback period. Students learn to analyze projects with varying levels of risk and to make informed investment decisions.
• Working Capital Management: A detailed look at managing current assets and liabilities, including cash management, accounts receivable management, inventory management, and short-term financing strategies. Efficient working capital management is vital for a company's short-term liquidity and profitability.
• Financial Statement Analysis: Students learn to critically analyze financial statements (balance sheet, income statement, cash flow statement) to assess a company's financial performance, identify trends, and make informed investment decisions. Ratio analysis plays a key role in this section.
• Capital Structure: Examining the mix of debt and equity that a company uses to finance its operations. The course explores the Modigliani-Miller theorem (often with extensions), optimal capital structure, and the impact of financial leverage on firm value.
• Dividend Policy: Understanding the factors that influence a company's dividend policy and the impact of dividend payments on shareholder value. Students learn about different dividend payout methods and their implications.

Learning Experience

Finance 201 usually incorporates a blend of lectures, tutorials, and practical exercises. Tutorials often involve problem-solving sessions where students apply the concepts learned in lectures to real-world scenarios. Assignments might include case studies, financial modeling exercises using spreadsheets, and group projects. The emphasis is on developing analytical and problem-solving skills.

Prerequisites and Expectations

Students are typically expected to have a solid foundation in basic financial accounting and introductory finance principles. A strong grasp of mathematical concepts is also essential, as the course involves quantitative analysis and calculations. Active participation in class discussions and diligent completion of assignments are crucial for success.

Career Relevance

Mastering the concepts in Finance 201 equips students with the essential knowledge and skills required for entry-level positions in various finance-related roles. It provides a strong foundation for more advanced finance courses and prepares students for professional certifications such as the Chartered Financial Analyst (CFA) designation.