FIN2101
BUSINESS FINANCE II
Faculty of Business
Introductory Book
Semester 2 2003
The University of Southern Queensland,2003.
Published by
Distance Education Centre
The University of Southern Queensland
Toowoomba Qld 4350
Australia
http://www.usq.edu.au
Copyrighted materials reproduced herein are used under the provisions of the Copyright Act 1968 as amended,or
as a result of application to the copyright owner.
No part of this publication may be reproduced,stored in a retrieval system or transmitted in any form or by any
means electronic,mechanical,photocopying,recording or otherwise without prior permission.
Produced using FrameMaker5.5.6 on a Pentium workstation.
TABLE OF
CONTENTS
PAGE
Course Specification
Course Introduction 1
Welcome 1
Course Personnel 1
Course Overview 2
Course Outline 3
Communication 4
Student Enquiries 4
USQConnect 5
Study Schedule 6
Course Evaluation (External Students Only) 7
Course Assessment 8
Assessment Schedule 8
Submission Details 9
Faculty of Business Policy 10
Course Resources 16
Study Material 16
Text 16
Assignment 1 17
Assignment 2 21
Past Examination 27
Solution to Final Examination
Student Feedback 29
The University of Southern Queensland
Course Specification
Description,Business Finance II
Subject Cat-Nbr Class Term Mode Units Campus
FIN 2101 24115 2,2003 EXT 1.00 TWMBA
Academic Group,FOBUS
Academic Org,FOB009
HECS Band,2
ASCED Code,081101
STAFFING
Examiner,Rex Zeeman
OTHER-REQUISITES
It is highly recommended that you successfully complete either USQ51111 or FIN1101
before enrolling in this course,If you have not,you may find it difficult to successfully
complete this course.
SYNOPSIS
Financial decisions within a firm can be divided into the investment,financing and dividend
decision,The course Business Finance I introduced students to the investment decisions.
This course completes the coverage of this decision,as well as examining the financing
and dividend impacts,It examines working capital management,mergers/acquisitions and
leasing,This course also recognises the need to consider international ramifications on the
decision making process.
OBJECTIVES
On completion of this course students will be able to:
understand and apply modern portfolio theory and the capital asset pricing model,
and discuss the efficient market hypothesis;
determine the optimal investment in working capital;
evaluate a takeover proposal and discuss the effects of takeovers/mergers in
Australia;
analyse and advise management in respect of capital structure decisions,including
advice on the appropriate sources of finance for business organisations;
advise management on lease financing;
discuss the implications of alternative dividend policies for the firm;
examine the interaction of the investment and financing decisions;
discuss financial decision making in an international context.
Page - 1
TOPICS
Description Weighting (%)
1,Risk/return analysis and portfolio theory 10.00
2,Capital asset pricing model (CAPM) 10.00
3,Application of CAPM 7.00
4,Working capital management 15.00
5,Takeovers 8.00
6,Sources of finance 10.00
7,Capital structure 10.00
8,Leases 8.00
9,Investment and financing decisions 7.00
10,Dividend policy 8.00
11,International financial management 7.00
TEXT and MATERIALS required to be PURCHASED or ACCESSED:
Books can be ordered by fax or telephone,For costs and further details use the 'Book Search'
facility at http://bookshop.usq.edu.au by entering the author or title of the text.
Gitman,LJ,Juchau,RH & Flanagan,J 2002,Principles of managerial finance,3rd edition,
Pearson Education Australia,French's Forest,New South Wales.
Zeeman,RA & Simpson,KA 2002,Study guide to accompany 'Principles of managerial
finance',3rd edition,Pearson Education Australia,French's Forest,New South Wales.
REFERENCE MATERIALS
Reference materials are materials that,if accessed by students,may improve their knowledge
and understanding of the material in the course and enrich their learning experience.
It is not necessary to obtain the above titles,but if available,they will provide supplementary
material to the set text.
Ball,R,Brown,P,Finn,FJ & Officer,RR (eds) 1989,Share markets and portfolio theory,
2nd edition,University of Queensland Press,St Lucia,Queensland.
(copies available in reserve section of library - latest edition.)
Bishop,SR,Crapp,H,Faff,R & Twite,G 2000,Corporate finance,4th edition,Pearson
Education Australia,French's Forest,New South Wales.
Brealey,R,Myers,S,Partington,G & Robinson,D 2000,Principles of corporate finance,
Irwin McGraw-Hill,Sydney.
Bruce,R,McKern,B,Pollard,I & Skully,M 1997,Handbook of Australian corporate
finance,5th edition,Butterworths,Sydney.
Page - 2
Frino,A,Cusack,A & Wilson,K 2001,Introduction to corporate finance,Pearson Education
Australia,French's Forest,New South Wales.
Peirson,G,Brown,R,Easton,S & Howard,P 2002,Business finance,8th edition,
McGraw-Hill,Sydney.
Petty,JW,Peacock,R,Martin,P,Burrow,M,Keown,AJ,Scott,DF & Martin,JD 2003,
Financial management,3rd edition,Pearson Education Australia,Sydney.
Ross,S,Thompson,S,Christensen,M,Westerfield,R & Jordan,B Fundamentals of
corporate finance,2nd edition,McGraw-Hill,Sydney.
STUDENT WORKLOAD REQUIREMENTS
ACTIVITY HOURS
Assessment 20
Directed Study 48
Private Study 93
ASSESSMENT DETAILS
Description Marks Out of Wtg(%) Required Due Date
ASSIGNMENT 1 200.00 10.00 Y 02 Sep 2003
ASSIGNMENT 2 200.00 10.00 Y 14 Oct 2003
EXAM PART A (MULTI-CHOICE) 30.00 30.00 Y END S2
(see note 3)
EXAM PART B (QUESTIONS) 50.00 50.00 Y END S2
NOTES:
3,The examination is scheduled to be held in the end-of-semester examination period.
Students will be advised of the official examination date for Exam (Parts A and
B) after the timetable has been finalised,The total working time for Exam (Parts
A and B) is 3 hours.
IMPORTANT ASSESSMENT INFORMATION
1 Attendance requirements:
If you are an International student in Australia it is a requirement of your student
visa that you attend all classes at your campus,For all other students,there are no
attendance requirements for this course,However,it is the students' responsibility
to study all material provided to them or required to be accessed by them to
maximise their chance of meeting the objectives of the course and to be informed
of course-related activities and administration.
2 Requirements for students to complete each assessment item satisfactorily:
To complete each of the assignments satisfactorily,students must attempt all
assignment questions,To complete the examination satisfactorily,students must
obtain a passing grade.
Page - 3
3 Penalties for late submission of required work:
If a student submits an assignment after the due date without the prior approval of
the Examiner,a penalty of 20% of the total marks gained by the student for the
assignment will apply for each working day late.
4 Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade a student must submit all of the
summative assessment items,achieve at least 50% in the examination and at least
50% of the available weighted marks for the summative assessment items.
5 Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the weighted aggregate
of the marks (or grades) obtained for each of the summative assessment items in
the course.
6 Examination information:
This is a restricted examination,Candidates are allowed access to specific materials
during the examination,The only materials that candidates may use in the restricted
examination for this course are,writing materials (non-electronic and free from
material which could give the student an unfair advantage in the examination);
calculators which cannot hold textual information (students must indicate on their
examination paper the make and model of any calculator(s) they use during the
examination),It is essential that students attempting this course have a quiet
battery-operated non-programmable calculator,such as the Casio fx-82TL scientific
calculator,or an equivalent,Students are not permitted to take mobile telephones,
pagers or other electronic means of communication into the examination room.
7 Examination period when Deferred/Supplementary examinations will be held:
Any Deferred or Supplementary examinations for this course will be held during
the next examination period.
8 University Regulations:
Students should read USQ Regulations 5.1 Definitions,5.6 Assessment,and 5.10
Academic Misconduct for further information and to avoid actions which might
contravene University Regulations,These regulations can be found at the URL:
http://www.usq.edu.au/SECARIAT/calendar/Part5/ or in the printed version of the
current USQ Handbook,Students should also read The Guide to Policies and
Procedures of the Faculty which can be found at the URL:
http://www.usq.edu.au/handbook/2003/title663.html or in the printed version of
the current USQ Handbook.
ASSESSMENT NOTES
1 Assignments,(i) The due date for an assignment is the date by which a student
must despatch the assignment to the USQ,The onus is on the student to provide
proof of the despatch date,if requested by the Examiner,(ii) Students must retain
a copy of each item submitted for assessment,This must be produced within five
days if required by the Examiner,(iii) In accordance with the University's
Assignment Extension Policy (Regulation 5.6.1),the Examiner of a course may
grant an extension of the due date of an assignment in extenuating circumstances.
All applications for assignment extensions must be accompanied by appropriate
supporting documentation,Under no circumstances will assignments submitted
Page - 4
more than two calendar weeks after the due date be accepted,(iv) Assignments are
to be submitted in the appropriate assignment folders,(v) The Examiner will not
accept submission of assignments by facsimile.
2 Course Weightings,Weightings of topics should not be interpreted as applying to
the number of marks allocated to questions testing those topics in an examination
paper,The examination may test material already tested in assignments.
3 Dishonest Actions,(i) Any student who is alleged to have performed a dishonest
action relating to any assessment in the course will have a course of action taken
against him/her as outlined in the Academic Regulations,(ii) Pieces of assessment
should be the work of individual students,Joint pieces of assessment are not
permitted unless written approval has been obtained from the Examiner,(iii)
Dishonest action in relation to assessment includes,copying or attempting to copy
the work of others; use of or attempting to use information prohibited from use in
that form of assessment; submitting the work of another as your own; consciously
committing acts of plagiarism,ie taking and using another's thoughts or writings
as one's own with intent to deceive,which occurs when paragraphs,sentences,a
single sentence or significant parts of a sentence which are copied directly,are not
enclosed in quotation marks and appropriately footnoted or referenced in the text;
direct quotations are not used,but text is paraphrased or summarised,and the source
of the material is not acknowledged by footnoting or other reference in the text.
4 Deferred Examinations,(i) Deferred examinations will be granted based on
non-attendance for medical reasons,family/personal reasons,or employment-related
reasons,Deferred examinations must be recommended by the Faculty Assessment
Coordinator and approved by the Examiner or Moderator or Dean's Nominee,If a
deferred examination is granted,students shall sit the deferred examination in the
next semester examination period,If,for whatever reason,this deferred examination
is not taken then the student will be graded 'F',(ii) To be eligible for consideration
for a deferred examination,students must have submitted a genuine attempt at all
mandatory assessment items,(iii) Deferral of an examination CANNOT be granted
on an existing deferral in that course,(iv) Requests must be in writing to the Faculty
Assessment Coordinator clearly stating student name,student number,current
address,course alpha-numeric identifier and name for the examination not attended.
(v) Requests MUST BE supported by original or suitably authenticated
documentation,(vi) Requests and documentation must be submitted to the Faculty
Assessment Coordinator within ten (10) calendar days of the missed examination
date,(vii) Requests based on medical reasons must be supported by medical
evidence on the appropriate University of Southern Queensland medical certificate
or doctor's certificate,A medical certificate must be dated with the same date as
the period of illness for which the absence from examination is being sought and
clearly indicate the student's name and,if possible,student number (retrospective
medical certificates will not be accepted for either assignment work or
examinations),Only original or authenticated medical certificates will be accepted.
A student's medical condition must be stated clearly (IN ENGLISH),(Certificates
stating a student has a 'medical condition' may not be sufficient grounds for
deferment of examination),Medical evidence must cover the student for the day(s)
of the missed examination(s),(viii) Requests based on family/personal reasons
must be supported by a clear statement (IN ENGLISH) from a medical practitioner,
Page - 5
counsellor or independent member of the community,(ix) Requests based on
employment-related reasons must be supported by a clear statement (IN ENGLISH)
from the student's employer,(x) Students who have a medical condition or genuine
compassionate or employment-related problems on the day of the examination are
advised to obtain the relevant documentary evidence and NOT attempt the
examination,If a student makes an attempt at the examination,the assessment item
will be marked and a grade awarded,In these cases,a student cannot,after receiving
a 'fail' grade,request a deferred examination or special consideration,(xi) Students
who have been granted deferred examinations will not be granted a waiver of
prerequisites,without the permission of the Head of Department,in subsequent
semesters (if they do not have a passing grade).
Page - 6
FIN2101? Business Finance II 1
Course Introduction
Welcome
This section introduces the course,provides a course outline and introduces the course leader.
Course Personnel
Course Leader
Rex Zeeman
Email zeeman@usq.edu.au
Phone (07) 4631 2423
Messages (Outreach Services) (07) 4631 2285
Room L305
2 FIN2101? Business Finance II
Course Overview
Financial
Decisions
Investment
Decisions
Financing
Decisions
Dividend
Decisions
Cost of
Capital
Capital
Structure
Dividend
Policy
Working Capital
Management
Sources of
Finance
Takeovers Leases
International
Financial
Management
Interaction of
Investment and
Financing Decisions
FIN2101? Business Finance II 3
Course Outline
Business Finance II is the second of the two courses in the corporate finance area,It follows
on from FIN1101 Business Finance I which in many ways was a ‘context setting’ course
aimed at developing skills and techniques which students can apply in this course,The course
is structured so that students first complete their examination of the investment decision
(modules 1 to 5) and then look at the financing decision (modules 6 to 8),The interaction of
the investment and financing decisions is covered in module 9,The dividend decision is
explored in module 10,and the course then concludes with a look at international financial
management in module 11.
The preceding course overview will give you a good idea of the areas covered in the course.
Module 1 commences a look at the capital asset pricing model (CAPM),In this module,
students look at risk-return analysis and modern portfolio theory.
Module 2 continues with the development of the capital asset pricing model (CAPM).
Module 3 examines the application of the capital asset pricing model (CAPM) as a pricing
model and as a method of calculating the cost of equity capital,The module concludes with a
discussion on the efficient market hypothesis (EMH).
Module 4 is concerned with working capital management,a very important area given the
level of investment in cash,inventory and accounts receivable by firms,Students are
introduced over a 2-week period to a number of models which will aid in the management of
the firm’s current assets.
Module 5 involves an analysis of takeovers/mergers,The module looks at takeovers from both
a theoretical and practical point of view.
Module 6 commences our look at the financing decision of the firm,introducing the student to
the various sources of finance (debt and equity,short- and long-term) available to the firm.
Module 7 looks at capital structure and whether or not the value of the firm’s shares is affected
by the way it finances its activities.
Module 8 is concerned with lease financing,a specific source of finance used by firms.
Module 9 brings together the investment and financing decisions,Techniques for
incorporating the effects of financing into the investment decision are examined.
Module 10 introduces students to the dividend issue,Does the firm’s dividend policy affect
the market price of the firm’s shares?
Module 11 concludes the course and is concerned with international financial management,
With a large number of Australian firms involved in international trade and Australia playing a
key role in the international capital market,an examination of international financial
management issues is important.
4 FIN2101? Business Finance II
Communication
Student Enquiries
You should carefully read the information provided in your Distance Education Student Guide
concerning contact details and support services,
Enquiries via the Internet
If you have Internet access,USQAssist is the most efficient method for requesting support
assistance,This is a web self-service facility for all students,You can:
find answers to common questions;
ask a question; and/or
track the progress of a question,
By typing a keyword in the search field,you can find answers to many of the questions
frequently asked by students,including course troubleshooters,To access USQAssist,go to
http://usqassist.usq.edu.au or click on ‘USQAssist’ in USQConnect,
Enquiries via Telephone or Facsimile
Alternatively,you can ask for support via telephone or fax.
International Students All Other Students
Contact your Local Support Office
for further assistance,If there is no
Local Support Office in your country
you should contact the International
Office at USQ.
All administrative queries should be
directed to the Outreach Services in
the Distance Education Centre
(DEC) or your Regional Liaison
Officer.
Telephone,61 7 46312362 (International Office) 07 46312285 (Outreach Services)
Fax,61 7 46362211 (International Office)
61 7 46359225
07 46361049 (Outreach Services)
Web Form,http://usqconnect.usq.edu.au/usqassist
Email,iosupport@usq.edu.au outreach@usq.edu.au
FIN2101? Business Finance II 5
USQConnect
USQConnect provides you with online access to information,services and course resources
relevant to your studies from a convenient,central point,This integrated approach means you
are assured of wide-ranging,up-to-date information via a consistent and easy-to-use interface,
To access USQConnect,go to the USQ Homepage at http://www.usq.edu.au and click on
USQConnect,or go directly to the USQConnect URL at http://usqconnect.usq.edu.au,You
will require a USQConnect username and password to access the system,You will be notified
of this username and password by Student Administration on your first Enrolment Notice and
Statement of Account.
In USQConnect,your USQ Study Desk gives access to:
electronic course materials and resources (where appropriate); and
electronic course discussion facilities,
As each course has specific learning requirements,availability of these features will vary
between courses,
Note,Up-to-date information about using the Study Desk is available on the USQConnect
homepage beside the ‘Study Desk’ link,
USQAdmin allows you to access a number of student administration functions such as
changing your contact details,checking your enrolment details,accessing Learning Circles,
checking assignment results and final grades,changing your exam centre,and more,
USQConnect also gives access to the Library and the Academic Support site,as well as the
Quick Links list of University sections and services.
6 FIN2101? Business Finance II
Study Schedule
Week Module Activity/Reading Assessment
1
21–25 July
1,Risk-Return
Analysis
Gitman et al,ch,6 (pp,194–210 only)
Zeeman & Simpson,ch,6 (part only)
Self Assessment Activity 1.1
2
28 July – 1 August
2,The Capital Asset
Pricing Model
(CAPM)
Gitman et al,ch,6 (pp,210–21 only)
Zeeman & Simpson,ch,6 (part only)
Appendices 2.1,2.2 and 2.3
Self Assessment Activity 2.1
3
4–8 August
3,Application of
CAPM
Gitman et al,ch,7 (pp,250–1 only)
Zeeman & Simpson,ch,7 (part only)
Appendix 3.1
Self Assessment Activity 3.1
4
11–15 August
4,Working Capital
Management
Gitman,et al,ch,15 (pp,544–9 only) & ch,17
(pp,632–8 only)
Zeeman & Simpson,ch,15 (part only) & ch,17
(part only)
Self Assessment Activities 4.1 & 4.2
5
18–22 August
Gitman et al,ch.16 & ch,17 (pp,616–631 only)
Zeeman & Simpson,ch,16 & ch,17 (part only)
Self Assessment Activities 4.3 & 4.4
6
25–29 August
5,Takeovers
Gitman et al,ch,19
Zeeman & Simpson,ch,19
Appendix 5.1
Self Assessment Activity 5.1
Reminder,31/08/03 is the last date to drop S2 courses without academic or financial penalty.
7
1–5 September
6,Sources of
Finance
Gitman et al,ch,2 (pp,33–41 only),ch,15 (pp,
553–71 only) & ch,18 (pp,661-6 only)
Zeeman & Simpson,ch,2 (part only),ch,15 (part
only) & ch,18 (part only)
Self Assessment Activity 6.1
Assignment 1
(10%) Due,
2 September 2003
8
8–12 September
7,Capital Structure
Gitman et al,ch,13 (pp,477–96 only)
Zeeman & Simpson,ch,13 (part only)
Self Assessment Activity 7.1
9
15–19 September
8,Leasing
Gitman et al,ch,18 (pp,652–61 only)
Zeeman & Simpson,ch,18 (part only)
Self Assessment Activity 8.1
10–11
22 Sept – 3 Oct
RECESS/RESIDENTIAL SCHOOL
12
6–10 October
9,Investment and
Financing
Decisions
Appendix 9.1
Self Assessment Activity 9.1
13
13–17 October
10,Dividend Policy
Gitman et al,ch,12
Zeeman & Simpson,ch,12
Appendices 10.1,10.2 and 10.3
Self Assessment Activity 10.1
Assignment 2
(10%) Due,
14 October 2003
14
20–24 October
11,International
Financial
Management
Gitman et al,ch,20
Zeeman & Simpson,ch,20
Self Assessment Activity 11.1
15
27–31 October
16–18
3–21 November
EXAMINATION PERIOD
FIN2101? Business Finance II 7
Course Evaluation (External Students Only)
The University of Southern Queensland is committed to continuous improvement,and seeks
your input to that process through your participation in our course evaluation process,Please
complete and return the questionnaire ‘Student Feedback on External Courses’ included later
in this introductory book.
Your response will be processed so that,unless you wish otherwise,the course Examiner will
not be aware of your identity,Please help us to help our students by providing feedback on
your experiences in this course.
When to Return the Questionnaire
Please return the questionnaire before the end of this semester’s examination period,
Where to Send the Questionnaire
1,Insert the completed questionnaire in an envelope,seal and address envelope as follows:
The Course Evaluation Co-ordinator
Information Technology Services
University of Southern Queensland
Toowoomba 4350
2,The envelope may be posted directly to the above address
OR
attached to the outside of your last assignment for this course and then posted to DEC.
8 FIN2101? Business Finance II
Course Assessment
Assessment Schedule
The assessment for this course consists of two (2) assignments and a restricted final
examination:
Examination
The final examination is a restricted examination (only writing implements and a non-
programmable calculator may be taken into the examination room),The examination will
cover the entire course and is in two (2) parts:
Part A comprises 30 multiple choice questions and carries a weighting of 30%.
Part B consists of practical problems and short-answer questions,with a total weighting of
50%.
A Final Comment
I hope that you find this course enjoyable,If you are experiencing difficulty at any time,I urge
you to contact me for assistance,Don’t fall into the trap of leaving it to the last few days before
the examination to call me about a problem you had early in the semester,Ring me when the
problem arises so that we can sort it out straight away,Good luck!
Past Examination Paper
A past examination paper is provided as a revision tool.
Assignment Extension Policy
The due dates for the assignments are firm,The University’s policy on assignment extensions
applies and I recommend that you familiarise yourself with the policy,I personally prefer that
students contact me prior to the due date if they wish to seek an extension.
Students must attempt both assignments.
Item Details Weighting Due Date
1 Assignment 1 10% 2 September 2003
2 Assignment 2 10% 14 October 2003
3A Examination – Part A 30% End of Semester
3B Examination – Part B 50% End of Semester
FIN2101? Business Finance II 9
Submission Details
Submission of Assignments
Each assignment should be attached inside the standard assignment folder on which is
included:
full name and address and student number;
name of course;
assignment number; and
correct assignment sticker.
All pages of the assignment should have a margin of an adequate width – 3 cm (1 inch) all
around.
Those assignments that are descriptive should,where possible,be typewritten in double
spacing to aid in assessment,Should you be unable to submit typewritten assignments please
ensure they are legible.
Please ensure that all pages are securely fastened together,numbered,and each page should
have your name on it,All assignments should be forwarded to:
Distance Education Centre
USQ
TOOWOOMBA QLD 4350
AUSTRALIA
10 FIN2101? Business Finance II
Faculty of Business Policy
All work presented for assessment is expected to be the student’s own and original work,The
Faculty of Business expects of all students,honest and meticulous acknowledgement of all
sources of materials used.
Plagiarism
Failure to cite sources as they are used will be regarded as plagiarism,Plagiarism is one form
of cheating,Where direct quotations from a source are included in the student’s work,inverted
commas must be used and the source cited,The Harvard System of citation must be used in all
courses conducted by the Faculty of Business (unless otherwise advised by the Examiner),
Where ideas from a text,reference or article are used,the source must be cited,Similarly,
where comments from personal interviews are used,acknowledgement must be made.
All sources,including sources on the Internet,utilised must be set out in a list of references or
a bibliography at the end of the assignments,This does not replace in-text referencing but is
supplementary to it.
Where there is evidence that a student has plagiarised sources or there is evidence of other
forms of cheating one of the following actions may be taken:
the student may fail the course; or
the assignment may be failed; or
a make-up assignment may be set; or
the assignment may be repeated; or
the matter may be referred to the Head of Department under Academic Regulations on
Academic Misconduct (see part 1 of the USQ Handbook)
Collusion
A less well-defined issue is that of group work,The forming of a group to share ideas and
assist in the development of assignments or projects is an accepted and encouraged practice,
However,it is not acceptable for members of the group to submit identical answers to
submissions,by simply copying the work done as a group.
In some courses,the Examiner may advise that joint submissions are acceptable,This
normally applies to major projects where several areas of expertise are required,Formal prior
arrangements and approval is required and each member of the team will be required to sign a
submission indicating they accept that each will receive the same mark,It should be noted that
Examiners and/or Lecturers normally expect a higher standard of work in joint submissions.
With the above exception,all assignments must be submitted individually and the Examiner is
entitled to consider identical layout,identical mistakes,identical argument and identical
presentation to be prima facie evidence of collusion.
Hence if you study in a group,by all means discuss assignments or projects,but prepare your
formal response yourself.
FIN2101? Business Finance II 11
Cheating
There is no excuse for or sympathy given to students who cheat,A student found guilty of
cheating in examinations or assignments,e.g,copying from another student’s assignment or
from an assignment submitted in a previous year either in part or in total,will be dealt with
under the Academic Regulations on Academic Misconduct,USQ Handbook.
Appeal Against the Award of a Final Grade
Time Limit:
Any appeal against a final grade must be lodged within 14 days of the posting of official
results for Semester 1 and 3,For Semester 2,appeals must be lodged by Monday,four weeks
before the first day of classes in the following Semester 1,
All appeals must be accompanied by the prescribed fee (see Part I of the USQ Handbook
available on the Web at http://www.usq.edu.au/handbook/),
Late appeals will not be accepted.
Process to Follow:
(a) The student receives notification of results and does not agree with the result.
(b) The student must contact the Examiner or Moderator of the course and
(i) request that the examiner check that no administrative error has occurred in the
addition or recording of the marks gained for the assessable components of the course
or in recording the grade awarded; and
(ii) discuss with the Examiner or Moderator of the course,the grounds upon which the
student feels the grade awarded is incorrect.
The student may request a copy of their marked examination script,Such a request must be
made in writing to the Faculty Assessments Coordinator and be accompanied by the
prescribed fee (see Fees and Charges in the USQ Handbook,available on the Web at
http://www.usq.edu.au/handbook/
(c) The Examiner or Moderator must:
(i) check arithmetic used in awarding the result;
(ii) check that all marks and assessments that should have been used in awarding the
grade have been used;
(iii) check that all marks have been correctly recorded;
(iv) consider the grounds upon which the student feels the grade awarded is incorrect; and
(v) advise the student of the outcome of their investigations in writing,A copy is to be
placed on the student’s file,
Note,There is no onus on the Examiner to re-mark assessable material as part of this
pre-appeal process.
12 FIN2101? Business Finance II
(d) If the student is still not satisfied a formal written appeal against the award of the final
grade in a course may be lodged in accordance with Academic Regulations for Appeals
(see part 1 of the USQ Handbook) are:
(i) that there has been a breach of University’s regulations,procedures or assessment
policy,or failure to adhere to the approved assessment procedures for that course,
sufficient to cause disadvantage to the student; or
(ii) that the student has been unfairly treated in the process of assessment; or
(iii) that the student has been unfairly treated by persons involved in the conduct of the
examination,
When the student writes a letter of appeal,they must outline the basis for the claim and must
show that a reasonable effort has been made to resolve the dispute at the pre-appeal stage,The
letter should be addressed to the Secretary,Faculty of Business Appeals Committee and the
prescribed fee should be enclosed,Appeals will not be processed unless the fee has been paid,
Please Note,
(i) It is recommended that students seek advice from the Student Guild before proceeding
to appeal.
(ii) No appeals will be accepted after the relevant deadline for lodgment,Where a student
cannot provide complete documentation by the deadline,they should lodge their
appeal together with a written request for an extension of time to complete their
documentation,The request will be considered by the Chair of the Faculty of Business
Appeals Committee,whose decision shall be final.
(iii) An appeal cannot succeed unless the grounds for appeal are addressed,A request for
a re-mark without addressing the grounds for appeal does not satisfy this
requirement.
(e) The Faculty Appeals Committee will then hear the student’s appeal,This Committee is
made up of:
a senior academic staff member from another Faculty (Chair);
Dean of the Faculty or Dean’s nominee;
one male and one female academic staff representative;
one of the elected student members of Faculty Board; and
a person nominated by the Student Guild.
(f) Once the student’s appeal has been considered,the student will be notified by letter of the
outcome,If the appeal is upheld the fee paid for the appeal will be refunded.
(g) If the student is not satisfied with the Faculty Appeals Committee’s decision,they may
apply for a review or appeal to the University Appeals Committee (within 14 days of
receipt of the letter referred to in (f) above),A student may appear before the University
Appeals Committee on his/her own behalf and/or be represented by the Student Guild,A
staff member may appear before the University Appeals Committee either alone or
accompanied for advice and/or note taking by another staff member,However,an appeal
to the University Appeals Committee can only be made on the basis that procedures in the
University Regulations for Appeals have not been followed by the Faculty Appeals
Committee.
A decision of the University Appeals Committee shall be final.
FIN2101? Business Finance II 13
(h) In accordance with University policy,a student can obtain a copy of their marked
examination script on payment of the prescribed fee (See Part I of the USQ Handbook).
Rescheduling of Examinations
A rescheduled examination is an examination that is offered to a student at a time different to
that published in the official examination timetable,but within the official examination period,
An application for a rescheduled examination must address exceptional circumstances and
provide supporting documentary evidence that will demonstrate severe hardship should the
student sit the examination at the scheduled time,The application will be considered by the
Dean or the Dean’s nominee,Rescheduling of examinations is rarely approved.
An application for a rescheduled examination must be submitted at least 14 days before the
scheduled examination date,Late applications will not normally be considered.
Supplementary Examinations
A Supplementary Examination for a course is an examination awarded at the discretion of the
Examiner of the course and is available only where a student has undertaken all the required
assessments in a course but has not demonstrated satisfactory levels of achievement in all
objectives considered essential for passing the course,
The award of a Supplementary Examination for a course is signified by a grade of either IS or
ISM on the student’s Academic History or Result Certificate,
Students who have been awarded a Supplementary Examination,shall only be assigned a
passing grade of ‘C’ or a failing grade of ‘F’ for the course in which the supplementary
assessment was awarded.
Once official results have been issued,Examiners do not have discretion to award further
Supplementary Examinations,
Supplementary Examinations will be offered in the next semester examination period,
Students who do not sit a Supplementary Examination,for any reason,will be given a Fail
grade for the course.
Deferral of Examinations
A Deferred Examination for a course may be offered to a student on the basis they could not
attend a scheduled examination for medical reasons,family/personal reasons,or employment
related reasons,Deferred Examinations must be recommended by the Faculty Assessments
Coordinator and approved by the Examiner or Moderator or Dean’s Nominee,The granting of
a Deferred Examination for a course is signified by a grade of IDS on the student’s Academic
History,A student offered a Deferred Examination is eligible for the full range of grades
available for that course,
To apply for a Deferred Examination in a course offered by the Faculty,a student should
submit a request to the Faculty Assessments Coordinator within ten (10) calendar days of the
missed examination.
14 FIN2101? Business Finance II
The application must:
(a) clearly state the student’s name,student number and current address,
(b) contain a request for a Deferred Examination in a specific course (alpha-numeric course
identifier and name must be included),and
(c) contain medical and/or other supporting documentation:
USQ’s Student Medical Certificate should be used and must cover the day(s) of the
missed examination(s).
A student’s medical condition must be stated clearly in ENGLISH,Certificates stating
a student has a ‘medical condition’ will not normally be sufficient grounds for a
Deferred Examination.
Unsupported student statements relating to family/personal issues will not normally be
sufficient grounds for a Deferred Examination,Applications must be supported by a
statement from a medical practitioner,counsellor or independent member of the
community and must be stated clearly in ENGLISH.
Unsupported student statements relating to employment related reasons will not
normally be sufficient grounds for a Deferred Examination,Applications must be
supported by a statement from the Student’s employer and must be stated clearly in
ENGLISH.
Only original or suitably endorsed documentation will be accepted.
An application may be faxed to meet the deadline.
Refer to part 1 of the USQ Handbook Regulations on Deferred and Supplementary
Assessment.
A deferred examination will not be offered to a student if:
(a) the student will fail the course irrespective of the outcome of the examination,and/or
(b) the student has not submitted a genuine attempt at all other mandatory assessment items.
If a student sits the examination whilst ill,then the student is unable to apply for a Deferred
Examination,In the case of illness,a student should not attend the examination,but should
obtain a medical certificate and apply for a deferred examination,
Unsuccessful applicants for a deferred examination will be notified in writing as soon as
practicable.
Deferred Examinations will be offered in the next semester examination period.
Successful applicants will be issued an appropriate Academic History showing an IDS result
for the course,Deferral of an existing Deferred Examination is not permitted and students who
do not take an offered Deferred Examination for a course will be given a Fail grade for the
course.
Students who are unable to take a Deferred Examination for medical,family/personal reasons
or employment related reasons may:
FIN2101? Business Finance II 15
request that the course be dropped without Academic Penalty (appropriate medical
certificates,supporting evidence,etc,must be submitted with the request),or
re-enrol in the course to gain credit for the course.
A written request for dropping a course without Academic Penalty as a result of non
attendance at a Deferred Examination,and the appropriate supporting documentation,must
normally be received by the Faculty Assessments Coordinator within ten (10) days of the date
of the Deferred Examination.
Students will be notified in writing of the outcome of their request to drop without academic
penalty.
If the request to drop without academic penalty is approved,then:
A credit of HECS up-front fees will be arranged (students will need to apply in writing
to the USQ Finance Section for a refund).
or
A Federal Government Application for Remission of HECS Debt in Special
Circumstances (for deferred HECS) will be forwarded to the student for completion
and forwarding to DEST.
or
In the case of other USQ fees,current USQ policy on refunds will apply,The student
will be advised of the appropriate action to be taken.
or
In the case of USQOnline (NextEd),current NextEd policy on refunds will apply,The
student must apply to NextEd for a refund.
David Harvey
Dean
Faculty of Business
16 FIN2101? Business Finance II
Course Resources
Study Material
Introductory Book
This contains all the ‘housekeeping’ material in relation to the course,including assessment
details,Make sure that you take the time to read the material carefully,Of particular
importance is the course specification.
Study Book
The study book guides you through the course and should not be seen as a comprehensive
summary of the text and other materials,Some modules are fairly brief and provide only an
overview of what I consider to be a good coverage of the material in the text,On the other
hand,your text is rather ‘light on’ in some areas (such as module 9),and I have tried to
compensate for this in the study notes,Some modules include,as appendices,extracts from
journals,newspapers and other texts which will add to your understanding of the module,I
recognise that your time is precious and I have tried to limit the amount of material included,I
have also tried to avoid research articles which are inappropriate to a second level course.
Tutorial Workbook
This sets out the tutorial work required in relation to each module,Tutorial questions will
come predominantly from your text although I have also included a number of additional
questions for a couple of modules,The answers to all tutorial questions and problems are
included.
Text
The prescribed text is Principles of Managerial Finance by Gitman et al,You will find the
text coverage of most modules is very good,although it is lacking in a couple of areas,Where
this is the case,I have tried to provide a comprehensive coverage in the study book or
supplemented the text material with additional readings.
The text comes with a Study Guide by Zeeman and Simpson that contains a chapter summary
and a variety of exercises (true/false questions,multiple choice questions,problems) for you to
attempt,You should ensure that you read the relevant chapter (or section) from the Study
Guide set for each module and attempt the Study Guide activities.
FIN2101? Business Finance II 17
Assignment 1
This assignment is worth ten per cent (10%) of the overall assessment for the course,You
must complete all questions.
Set out below are annual return data for Company X and Company Z:
Required
(a) Calculate the expected return and standard deviation of a portfolio comprising 55%
invested in Company X and the balance in Company Y.
(60 marks)
(b) In your own words and citing appropriate references,define and discuss briefly the
efficient frontier,the capital market line (CML) and the security market line (SML),How
do they differ from each other? (Suggested length,300 words)
(30 marks)
Due Date,2 September 2003
Value,200 marks
Weighting,10%
Question 1 (90 Marks)
Year 1997 1998 1999 2000 2001 2002
Company X +14.2% +9.7% -3.8% +4.8% +5.7% -2.4%
Company Y +7.3% -4.9% -3.1% +7.5% +9.6% +8.2%
18 FIN2101? Business Finance II
You are considering purchasing shares in three (3) companies – L,M and N,You have
calculated the following data for the three companies:
The risk-free rate of return is 7% and the market risk premium is 5%.
Required
(a) Calculate the expected return (based on current market prices) for shares in each of the
companies.
(12 marks)
(b) Calculate the required rate of return for shares in each of the companies.
(6 marks)
(c) Draw the security market line (SML) and plot the expected return and required returns for
each company.
(20 marks)
(d) Identify which of the shares is underpriced,overpriced or correctly priced,and explain
briefly your answer.
(12 marks)
Question 2 (50 Marks)
Company Current Share
Market Price
Current
Dividend
Per Share
Proportion of
Earnings
Retained Each
Year
Return on
Retained
Earnings
Beta
L $1.85 $0.24 50% 10% 1.10
M $2.62 $0.29 25% 12% 1.55
N $0.96 $0.16 40% 20% 1.35
FIN2101? Business Finance II 19
Liberty Ltd is a retailer of fine quality furniture,specialising in living room furniture,The
company estimates that its sales volume for the coming year will be 100 units per week
(assume 52 weeks in the year),each costing $750,The cost of carrying the units in inventory is
10% of the purchase price per year,and ordering costs are $50 per order.
Required
(a) Calculate Liberty Ltd’s economic order quantity.
(5 marks)
(b) Calculate the total annual inventory costs,including the cost of the goods,associated with
ordering in the economic order quantity.
(5 marks)
(c) If Liberty’s desired safety stock is one week’s requirement and the re-order lead time is
eight days (assuming a 5-day week),at what inventory level should a re-order be made?
(5 marks)
(d) If the supplier offers a 1.5% discount for orders in lots of 150,should Liberty Ltd accept
the quantity discount?
(5 marks)
(e) The economic order quantity (EOQ) model for inventory management is based on several
assumptions,including no lead time and constant and certain demand,Discuss,with the
use of appropriate diagrams and examples,how the model might be adapted to overcome
these two unrealistic assumptions,(Suggested length,200 words plus diagrams)
(20 marks)
(f) What purpose do the Baumol and Miller-Orr models serve? Describe briefly their
similarities and differences,(Suggested length,200 words)
(20 marks)
Question 3 (60 Marks)
20 FIN2101? Business Finance II
When you submit your assignment,please note the following:
1,The assignment due date applies to both internal and external students,For external
students,you must post your assignments by the due date,Faxed copies of the assignment
will NOT be accepted.
2,A student may apply for an extension for the assignment only on the grounds of
extenuating circumstances,Extenuating circumstances should be interpreted as those
which are unanticipated and cannot be planned ahead,Heavy work or family commitments
and travelling on the due date are not normally considered extenuating circumstances,All
applications for extension must be accompanied by supporting documentation to
substantiate the claims of the student,It is best to contact the course leader to discuss an
extension prior to the due date,In all circumstances,no assignments will be accepted
two calendar weeks after the due date,Policies and penalties on late assignments will be
enforced.
3,Each student is expected to work independently for all calculations and analyses,Materials
used for references should be cited correctly,Regulations regarding dishonest actions will
be enforced.
4,For general regulations regarding assignments,please refer to the section on ‘other
requirements’ in the course specification.
FIN2101? Business Finance II 21
Assignment 2
This assignment is worth ten per cent (10%) of the overall assessment for the course,You
must complete all questions.
As CEO of Italy Industries,you must decide what to do about Protea Ltd,a major customer
that is bankrupt,Italy Industries is a large plastic-injection-moulding firm that produces plastic
products to customer order,Protea Ltd is a major customer of Italy Industries that designs and
markets a variety of plastic toys,As a result of mismanagement and inventory problems,
Protea Ltd has gone bankrupt,Among its unsecured debts are total past due accounts of $1.9
million owed to Italy Industries.
Recognising that it probably cannot recover the full $1.9 million that Protea Ltd owes it,the
management of Italy Industries has isolated two mutually exclusive alternative actions,(1)
acquire Protea Ltd through an exchange of shares; or (2) let Protea Ltd be liquidated and
recover Italy Industries’ proportionate claim against any funds available for unsecured
creditors,Italy’s management feels that the acquisition of Protea would allow it to vertically
integrate and expand its business from strictly industrial manufacturing to product
development and marketing,Of course,the firm wants to select the alternative that will create
the most value for its shareholders,Charged with making a recommendation as to whether
Italy should acquire Protea or allow it to be liquidated,you have gathered the following data.
Option 1 – Acquire Protea Ltd
Negotiations with the management of Protea have resulted in a planned ratio of exchange of
0.60 Italy Industries’ shares for each share of Protea Ltd equity,The following table reflects
current data for Italy Industries and Italy’s expectations of the data values for Protea Ltd with
proper management in place.
Italy Industries estimates that after the proposed acquisition of Protea Ltd,its price/earnings
(P/E) ratio will be 18.5.
Due Date,14 October 2003
Value,200 marks
Weighting,10%
Question 1 (100 Marks)
Item
Italy
Industries
Protea Ltd
Earnings available for equity $640 000 $180 000
Number of shares issued 400 000 60 000
Market price per share $32 $30
22 FIN2101? Business Finance II
Option 2 – Liquidation of Protea Ltd
Protea was denied its petition for reorganisation,and the court-appointed trustee was expected
to charge $150 000 for his services in liquidating the firm,In addition,a further $100 000 in
unpaid bills were expected to be incurred between the time of filing the bankruptcy petition
and the entry of an order for relief,The firm’s preliquidation balance sheet is shown below:
Notes
(a) Represents wages of $600 per employee and due.
(b) Unsecured customer deposits not exceeding $900 each.
(c) The first and second mortgages are on the firm’s total non-current assets.
The trustee expects to liquidate the assets for $3.2 million – $2.5 million from current assets
and $0.7 million from non-current assets.
Required
(a) Calculate (1) the ratio of exchange in market price and (2) the earnings per share (EPS)
and P/E ratio for each company based on the data given in the acquisition alternative table
on the previous page.
(17 marks)
(b) Find the post-merger EPS for Italy Industries assuming that it acquires Protea Ltd under
the terms given.
(10 marks)
(c) Use the estimated post-merger P/E ratio and your findings in (b) to find the post-merger
share price.
(3 marks)
Assets Liabilities and shareholders’ equity
Cash $20 000 Accounts payable $2 700 000
Marketable securities 1 000 Notes payable – bank 1 300 000
Accounts receivable 1 800 000 Accrued wages
a
120 000
Inventories 3 000 000 Unsecured customer deposits
b
60 000
Prepaid expenses 14 000 Taxes payable 70 000
Total current assets $4 835 000 Total current liabilities $4 250 000
Land $ 415 000 First mortgage
c
$ 300 000
Net plant 200 000 Second mortgage
c
200 000
Net equipment 350 000 Unsecured bonds 400 000
Total non-current assets $ 965 000 Total non-current debt $ 900 000
Ordinary equity (60 000 shares) $ 600 000
Retained earnings 50 000
Total shareholders’ equity $ 650 000
Total $5 800 000 Total $5 800 000
FIN2101? Business Finance II 23
(d) Use your findings in (c) to determine how much,if any,the total market value of Italy
Industries will change as a result of acquiring Protea Ltd.
(6 marks)
(e) Determine how much each claimant will receive if Protea Ltd is liquidated under the terms
given.
(19 marks)
(f) How much,if any,will Italy Industries recover of its $1.9 million balance due from Protea
Ltd as a result of the liquidation of Protea?
(4 marks)
(g) Compare your findings in (d) and (f),and make a recommendation for Italy Industries with
regard to the better action – acquisition of Protea or its liquidation?
(6 marks)
(h) Which alternative would the shareholders of Protea Ltd prefer? Why?
(5 marks)
(i) A company can reduce its risk by taking over another company,Do you agree with this
statement? Is it a justifiable reason for a takeover? (Suggested length,300 words)
(30 marks)
24 FIN2101? Business Finance II
During his career as an architect in Tampa,Florida,Frank Henderson observed a rapidly
expanding utilisation of skylights brought about by an increased desire to design more open
indoor spaces,However,the high cost of custom-made skylights made them an extravagance
that few could afford,especially with recently rising construction costs,To capitalise on this
growing market,in his spare time Henderson developed and patented a prefabricated skylight
which could be mass produced and sold profitably at a significantly lower cost to the
consumer.
Now that the design has been finalised,durability testing completed,and the sales potential of
the skylights assessed,Frank and his younger brother,Allen Henderson,have decided to form
a company to produce and market the product,Allen,a recent MBA graduate from the
University of Florida,is to be in charge of all financing decisions and to oversee the actual
production process,Frank,in turn,will check for quality control and be in charge of
distribution through various contractors and architectural firms,Because of the predicted
population and housing growth in the sun belt area,local banks and insurance companies have
indicated a willingness to supply the Henderson brothers with debt capital,Equity also appears
to be a viable option through the sale of stock to local investors at a price which will net the
company ten (10) dollars per share.
The Hendersons are planning to distribute the skylights through all types of contractors and
architects,At a projected selling price of $500 per unit,the large cost reduction as compared to
custom-made skylights,coupled with the recent trend toward such innovative design,will be a
solid basis for sales,Although some sales will be made in the home improvement and
renovation market,the primary demand will be from new construction,Due to the cyclical
nature of this industry and recent uncertainty in the economy as a whole,the Henderson
brothers estimated sales for three scenarios – optimistic,expected and pessimistic – and
allocated a probability of occurrence to each scenario as follows:
After an in-depth study,Frank has identified two alternative production processes that could
be employed and asked Allen to select the one to implement,Production Process A involves
the use of a minimum amount of highly automated equipment and purchasing major
components from local suppliers,Under this plan,annual fixed costs to Henderson Brothers
are estimated to be $5 095 000,while variable costs will be $390 per unit produced,The
second alternative,Production Process B,involves more operating leverage,fixed costs will
be $11 979 500 per year,and variable costs $275 per unit produced,The selling price will be
set at $500 regardless of the production process,and neither of these fixed costs includes any
interest charges,The total capital requirements for current and fixed assets,plus operating
funds during the start-up period,will be $11 million under Production Process A and $15
million under Production Process B,Assume that these investment requirements are known
with certainty.
Question 2 (100 Marks)
Scenario Sales in Units Probability of Occurrence
Pessimistic 52 200 0.25
Most Likely 67 500 0.50
Optimistic 82 800 0.25
FIN2101? Business Finance II 25
With respect to the financing of the project,the brothers are considering three (3) alternative
plans to raise the funds required:
Allen has contacted various commercial banks,investment bankers,and other potential
sources of debt capital,Based on his notes from these meetings,he has constructed the
following schedule for the cost of debt:
The company tax rate is 30 percent.
Required:
(a) Calculate the break-even level of sales (in units and dollars) for Production Process A and
Production Process B.
(20 marks)
(b) Assuming that the company decides to implement Production Process B,construct a
simple EBIT-EPS chart which would indicate which of the three financing plans should be
the preferred option.
(50 marks)
(c) On the basis of the chart you have prepared in Part (b),indicate which of the three plans
would be preferred,stating briefly the reason(s) for your choice.
(5 marks)
(d) Also on the basis of the chart,indicate at what points your financing plan preference may
change and explain why.
(10 marks)
Plan 1,75% funded by an issue of ordinary shares and
25% by an issue of bonds
Plan 2,50% funded by an issue of ordinary shares and
50% by an issue of bonds
Plan 3,25% funded by an issue of ordinary shares and
75% by an issue of bonds
Amount Borrowed Interest Rate
Up to $3 million 11.00%
$3.1 to $5 million 11.25%
$5.1 to $7 million 11.70%
$7.1 to $9 million 12.50%
$9.1 to $11 million 13.95%
$11.1 to $13 million 16.75%
$13.1 to $15 million 21.75%
26 FIN2101? Business Finance II
(e) Calculate mathematically the break-even level of overall earnings before interest and taxes
which would represent a point at which management would be indifferent between
financing plans 1 and 3 as a method of financing Production Process B.
(15 marks)
When you submit your assignment,please note the following:
1,The assignment due date applies to both internal and external students,For external
students,you must post your assignments by the due date,Faxed copies of the assignment
will NOT be accepted.
2,A student may apply for an extension for the assignment only on the grounds of
extenuating circumstances,Extenuating circumstances should be interpreted as those
which are unanticipated and cannot be planned ahead,Heavy work or family commitments
and travelling on the due date are not normally considered extenuating circumstances,All
applications for extension must be accompanied by supporting documentation to
substantiate the claims of the student,It is best to contact the course leader to discuss an
extension prior to the due date,In all circumstances,no assignments will be accepted
two calendar weeks after the due date,Policies and penalties on late assignments will be
enforced.
3,Each student is expected to work independently for all calculations and analyses,Materials
used for references should be cited correctly,Regulations regarding dishonest actions will
be enforced.
4,For general regulations regarding assignments,please refer to the section on ‘other
requirements’ in the course specification.
FIN2101? Business Finance II 27
Past Examination
Semester 2,2002
The multiple choice section of the exam has not been included.
28 FIN2101? Business Finance II
Solution to Final Examination
FIN2101 Business Finance II
Semester 2,2002
FIN2101? Business Finance II 29
For each statement you are asked to indicate the extent to which you agree with it in relation to this course by
inserting the appropriate number in the space provided,Except for Question 15,use the following scale in your
responses:
Student Feedback
Student feedback is important to staff to allow them to improve their teaching
and presentation of their course,and to monitor teaching standards in the
University,We ask you therefore to fill in this questionnaire,make thoughtful
comments on the back page,and return to USQ as detailed in the ‘Course
Evaluation’ section in this book.
Course Number,Course Name:
Mode,X Semester/Term 1 2 3
Strongly Agree
5
Agree
4
Neutral
3
Disagree
2
Strongly Disagree
1
Not applicable
0
I TEACHING MATERIALS
The teaching materials:
1 made clear the objectives for each module [ ] 1
2 explained concepts clearly [ ] 2
3 presented the subject matter in a way which helped me understand it [ ] 3
4 demonstrated the relevance of the course to the whole program [ ] 4
5 arrived prior to the end of the first week of semester [ ] 5
6 provided activities,quizzes and other methods of revision and testing for me to assess my progress [ ] 6
II STUDENT SUPPORT
7 The staff teaching this course responded promptly to queries and requests for assistance [ ] 7
8 The staff teaching this course gave adequate feedback on assignments and other prescribed work [ ] 8
9 The Regional Liaison Officers (RLOs) were supportive and helpful [ ] 9
10 Outreach Services were supportive and helpful [ ] 10
III THE COURSE
11 The course covered what the course’s description said it would [ ] 11
12 The criteria used to assess student work were clear [ ] 12
13 Assessment tasks allowed me to demonstrate what I had learnt [ ] 13
14 The materials I needed to allow me to do well in the course were all available [ ] 14
15 All things considered,how would you rate your overall satisfaction with this course?
Circle the appropriate description in the boxes.
Excellent
7
Very Good
6
Good
5
Satisfactory
4
Not Quite
Satisfactory
3
Poor
2
Very Poor
1
30 FET2101? Business Finance II
After the examination period the questionnaires will be returned to the lecturer so that
he/she may read your comments,Please print your comments to preserve your
anonymity.
If more than one staff member is involved in this course,please ensure that you make it
clear which one you are referring to when writing your comments.
What did you find were the most helpful/effective aspects of this course?
What did you find were the least helpful/effective aspects of this course?
What improvements would you suggest to the course itself?
What improvements would you suggest to the Teaching Materials for the course?
Please feel free to make any other comments,particularly in relation to your ratings,on this
questionnaire.
Please insert the completed questionnaire in an envelope,seal and address envelope as follows:
The Course Evaluation Co-ordinator
Information Technology Services
University of Southern Queensland
Toowoomba 4350
The envelope may be posted directly to the above address OR attached to the outside of your
last assignment and then posted to DEC.
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Your assignment was received at the
University on the date noted here and will be
returned to you when marked.
DISTANCE EDUCATION CENTRE
UNIVERSITY OF SOUTHERN QUEENSLAND
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on the date noted here and will be returned to
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DISTANCE EDUCATION CENTRE
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STAMP
HERE
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Please complete details above AND print YOUR NAME and ADDRESS on the reverse side and AFFIX THE CORRECT POSTAGE otherwise this card
will not be returned to you.
P.T.O.
Your assignment was received at the
University on the date noted here and will be
returned to you when marked.
DISTANCE EDUCATION CENTRE
UNIVERSITY OF SOUTHERN QUEENSLAND
Toowoomba,Queensland 4350 Australia
OFFICE USE ONLY
COURSE NAME
COURSE
NUMBER
ASSIGNMENT
NUMBER
DATE OF
POSTING
STUDENT
ID NUMBER
Your assignment was received at the
University on the date noted here and will be
returned to you when marked.
DISTANCE EDUCATION CENTRE
UNIVERSITY OF SOUTHERN QUEENSLAND
Toowoomba,Queensland 4350 Australia
OFFICE USE ONLY
COURSE NAME
COURSE
NUMBER
ASSIGNMENT
NUMBER
DATE OF
POSTING
STUDENT
ID NUMBER
Your assignment was received at the University
on the date noted here and will be returned to
you when marked.
DISTANCE EDUCATION CENTRE
UNIVERSITY OF SOUTHERN QUEENSLAND
Toowoomba,Queensland 4350 Australia
OFFICE USE ONLY
COURSE NAME
COURSE
NUMBER
ASSIGNMENT
NUMBER
DATE OF
POSTING
STUDENT
ID NUMBER
NAME ______________________________________________________________________________________
ADDRESS ______________________________________________________________________________________
______________________________________________________________________________________
_________________________________________________ POSTCODE _________________________
NAME ______________________________________________________________________________________
ADDRESS ______________________________________________________________________________________
______________________________________________________________________________________
_________________________________________________ POSTCODE _________________________
NAME ______________________________________________________________________________________
ADDRESS ______________________________________________________________________________________
______________________________________________________________________________________
_________________________________________________ POSTCODE _________________________
PLACE
STAMP
HERE
PLACE
STAMP
HERE
PLACE
STAMP
HERE