Unit Outline

Unit Outline*

FINA2222

Corporate Financial Policy

Semester 2, 2011

Crawley Campus

Unit Coordinators:

Professor Sirimon Treepongkaruna

Dr Jing Yu

Business School

www.business.uwa.edu.au

* This Unit Outline should be read in conjunction with the Business School Unit Outline

Supplement available on the Current Students web site http://www.business.uwa.edu.au/students

FINA2221/Crawley/ST-JY/22.06.11

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UNIT DESCRIPTION

Introduction

Welcome to FINA2222 Corporate Financial Policy (CFP).

CFP is the second unit in a sequence of four Corporate Finance Major core units. The other three

units are: FINA2221 Introduction to Finance (ITF), FINA3324 Investment Analysis, and FINA3326

Applied Financial Management.

This unit builds on the concepts of corporate finance developed in ITF. ITF reviews the investment

decision of the firm, emphasising the techniques of financial analysis for a variety of real and financial

assets. CFP examines the other two major financial decisions faced by a firm: dividend policy and

capital structure. We review the various arguments, factors and issues influencing the firm's choices

of dividend policy and capital structure. For each decision, the unit examines how market

imperfections and uncertainties may...