Unit rationale, description and aim

Corporate finance underpins how organisations allocate capital, manage risk, and create long-term value. This unit develops rigorous, practice-oriented capabilities in investment and financing decisions, embedding Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth, as well as Catholic Social Thought’s principle of the Common Good, as guiding frameworks for responsible financial decisions. Students learn to appraise real investments using the time value of money, discounted cash flow, Net Present Value and Internal Rate of Return, sensitivity and scenario analysis, and real options; to construct portfolios and price risk via modern portfolio theory; and to estimate the cost of capital. The financing side explores capital structure, dividend policy, debt and equity instruments—including sustainable and green finance. Environmental, Social, and Governance (ESG) considerations are integrated throughout, demonstrating how environmental and social risks impact cash flows, hurdle rates, and access to capital, and how governance aligns managerial choices with ethical and societal objectives. The aim is to equip graduates to design and defend value-enhancing decisions that responsibly balance profitability and risk, foster productive employment and inclusive growth, and steward financial resources toward outcomes that serve both shareholders and the broader community in Australia and beyond.

2026 10

Campus offering

No unit offerings are currently available for this unit.

Prerequisites

Nil

Incompatible

BAFN602 Corporate Finance

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

Appraise the various sources of financing to an or...

Learning Outcome 01

Appraise the various sources of financing to an organisation, including bank financing, bonds, equity, and treasury markets
Relevant Graduate Capabilities: GC1, GC10

Apply capital budgeting techniques to support deci...

Learning Outcome 02

Apply capital budgeting techniques to support decisions that promote decent work and sustainable economic growth (SDG 8)
Relevant Graduate Capabilities: GC2, GC6

Determine the optimal cost of capital and capital ...

Learning Outcome 03

Determine the optimal cost of capital and capital structure of a firm
Relevant Graduate Capabilities: GC2, GC8

Apply risk management techniques to manage the fin...

Learning Outcome 04

Apply risk management techniques to manage the financial and non-financial risks in an organisation
Relevant Graduate Capabilities: GC2, GC7

Content

Topics will include: 

  • Goals and functions of financial management  
  • Environment, social and governance (ESG) practices and finance decisions
  • Sustainable finance, green finance and climate finance
  • SDG 8 Decent Work and Economic Growth
  • Time value of money
  • Capital budgeting
  • Bond and share valuation
  • Risk and return
  • Capital and debt markets
  • Capital structure
  • Cost of capital
  • Dividend policy  

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning that seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. In order to pass this unit, students must demonstrate competence in all learning outcomes and achieve an aggregate mark of at least 50%. Using constructive alignment, the assessment tasks are designed for students to demonstrate their achievement of each learning outcome. 

For assessment, students will be required to evaluate data and information from a variety of sources and perspectives through research, integration, and analysis. Students will also need to apply critical thinking skills to identify and solve problems, inform judgments, make decisions, reach well-reasoned conclusions and make recommendations where applicable. Students are expected to communicate clearly and concisely when presenting, discussing, and reporting knowledge and ideas in formal and informal situations 

Each of these assessment pieces has been designed to empower students, lead to greater equity and deepen students’ skillsets by virtue of their design. They are assessments that are constructed to integrate the unit’s instruction and curriculum. Student must get at least 50% to pass unit and that should ensure competence.

Overview of assessments

Overview of Assessments

Assessment Task 1: Exam This assessment is an on...

Assessment Task 1: Exam

This assessment is an online exam that evaluates students’ ability to apply corporate finance concepts and methods. Topics may include goals and functions of financial management; ESG practices and financing decisions with reference to SDG 8 (Decent Work and Economic Growth); time value of money; cash flows and capital budgeting (including sensitivity and scenario analysis); bond and share valuation; risk–return trade-offs; income-, capital structure; cost of capital; and dividend policy.

Submission Type: Individual

Assessment Method: Online examination

Artefact: Written response

Weighting

45%

Learning Outcomes LO1, LO2, LO3, LO4
Graduate Capabilities GC1, GC2, GC6, GC7, GC8, GC10

Assessment Task 2: Written Report This assessment...

Assessment Task 2: Written Report

This assessment task comprises a set of activities using real-life data, designed to evaluate how students apply corporate finance skills to assess financial decisions.

Submission Type: Individual

Assessment Method: Written response

Artefact: Submitted report

Weighting

55%

Learning Outcomes LO1, LO2, LO3, LO4
Graduate Capabilities GC1, GC2, GC6, GC7, GC8, GC10

ACU’s assessment procedure (Section 5 - Phase 1 - Assessment Design: (9)c "Learning outcomes should normally be assessed more than once in a unit." requires that each learning outcome be assessed more than once. Since we are proposing two assessments in a 6-week window, we have to keep all five LOs for each assessment.

Learning and teaching strategy and rationale

Teaching and Learning Approach

Applied practice and active engagement are central to learning in accounting. Students are expected to adopt an active learning strategy, developing their skills and knowledge by doing. ACU’s teaching approach emphasises learning outcomes in knowledge, capabilities, and professional readiness. It encourages students to be active participants while recognising that learning involves both active and receptive processes, constructing meaning for oneself, and learning collaboratively. ACU promotes autonomous and self-motivated learning that is critical, reflective, and focused on mastering content and skills.

Online Mode

This unit applies an active learning approach that provides students with choice and variety in how they learn. Weekly asynchronous discussions and practical activities enable students to apply knowledge in contexts relevant to their future professions. Students are encouraged to share examples, demonstrate understanding, and engage constructively with peers. Regular and timely feedback supports their progress and achievement of learning outcomes.

Representative texts and references

Representative texts and references

Ross, SA, Bianchi, Westerfield, RW & Jordan, BD, 2025, Essentials of corporate finance, 2025 Release, McGraw-Hill Australia, Sydney. ISBN13: 978-1265920159

Brealey, RA., Myers, SC, Allen, F & Edmans, A, 2025, Principles of Corporate Finance, 2025 Release, McGraw-Hill.

Titman, S., Martin, T., Keown, AJ and Martin, JD 2023, Financial management: principles and applications, 9th edn, Pearson Education.

Berk, J, DeMarzo, P, Harford J, Ford, G & Mollica, V 2025, Fundamentals of corporate finance, Pearson Australia, 4th edn, Frenchs Forest, NSW

Graham, JR, Scott, BS, Adam, C & Gunasingham, B 2021, Corporate finance, Cengage Learning, 3rd Asia-Pacific edn, South Melbourne, VIC.

Parrino, R, Yong HWA, Kingsbury, NM, James, J, Mazzola, J, Murray, J, Smales, L & Wei, X 2020, Fundamentals of corporate finance, 4th edn, John Wiley & Sons.

Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporate finance and the theory of investment. The American Economic Review, 48(3), 261–297.

Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not. Journal of Financial Economics, 13(2), 187–221.

Ross, S. A. (1977). The determination of financial structure: The incentive-signalling approach. The Bell Journal of Economics, 8(1), 23–40.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.

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