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ZPG9012 - Money and the firm

15 Credits NQF9

Synopsis

This unit focuses on how to use financial information for decision-making. It is designed for the leader who will be using, rather than producing financial information. Good decision-makers anticipate and evaluate problems and opportunities. They recognise trade-offs, conduct rigorous stakeholder analyses and identify implications. Good managers develop the skills to balance stakeholder expectations while innovatively capitalising on opportunities for the organisation. This unit helps students to apply sound financial principles to the analysis of important business decisions.

Outcomes

The learning goals associated with this unit are to:

  • Assess time value of money calculations for various cash flow streams
  • Compare shareholder-centric, stakeholder-centric and Enlightened Value Maximisation (EVM) views of financial management
  • Compare Internal Rate of Return (IRR), Net Present Value (NPV) and Payback period in financial decision-making
  • Assess capital budgets using capital budgeting tools and Incremental Free Cash Flow (IFCF) estimates
  • Evaluate sensitivity, scenario and real options analyses in strategic decision-making
  • Analyse sources of risk, including firm-specific and market risks
  • Assess cost of equity, cost of debt and Weighted Average Cost of Capital (WACC)
  • Evaluate the impact of capital structure on value
  • Analyse the effects of agency conflicts on strategic choices

Assessment

Continuous assessment throughout the five weeks: 100%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 150 hours per unit typically comprising a mixture of scheduled learning activities, online interactions and independent study. Independent study may include associated readings, ‘use it now’ (in your job) applications, reflections, assessment and preparation for scheduled activities. The unit requires three Saturday sessions of scheduled contact. Scheduled activities may include a combination of teacher directed learning, guest speakers, case studies, peer directed learning and online engagement.

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