AFA601

AGRIBUSINESS FINANCIAL ANALYSIS

Content:

This unit is an introduction to managerial financial analysis applied in the agribusiness context.

Managerial finance encompasses the functions of budgeting, financial forecasting, credit administration, investment analysis and funds procurement for the firm. Managerial finance is the management of the firm’s funds within the firm.

Major topics include ratio analysis, time value of money, risk and the required rate of return, cost of capital, capital budgeting techniques, leverage and capital structure and portfolio theory. 

The objectives of this unit are as follows:

  • Develop a critical approach to the analysis of the financial performance of the business
  • Understand and use the key financial performance indicators as a measure of business health. 
  • A Identify and recommend strategic investments that will increase the owner’s wealth via a range of analytical tools. 
  • Develop an overview of the theoretical and practical issues in business finance and the range of funding alternatives which may suit business development
  • Understand the optimal capital structure of debt and equity finance and understand operating and financial leverage
  • Develop and understand applications in areas of specialised business financing such as leasing and capital budgeting
  • Understand portfolio theory and the relationship between required returns and the decisions regarding capital structure, capital budgeting and capital management

Learning outcomes:

  1. Develop a critical approach to the analysis of the financial performance of the business
  2. Understand and use the key financial performance indicators as a measure of business health. 
  3. Identify and recommend strategic investments that will increase the owner’s wealth via a range of analytical tools. 
  4. Develop an overview of the theoretical and practical issues in business finance and the range of funding alternatives which may suit business development.
  5. Understand the optimal capital structure of debt and equity finance and understand operating and financial leverage.
  6. Develop and understand applications in areas of specialised business financing such as leasing and capital budgeting.
  7. Understand portfolio theory and the relationship between required returns and the decisions regarding capital structure, capital budgeting and capital management.

Assessment: 

  1. Minor –Participation in weekly online discussion (10%)
  2. Online Test 1 (20%)
  3. Online Test 2 (20%)
  4. Online Test 3 (20%)
  5. Major Assignment (30%)