Finance theory forms the basis of many of the Master of Applied Finance units. This unit sets out the basic principles of corporate finance, risk-return analysis, and financial markets. Topics covered include financial evaluation of projects; cost of capital calculations; management of cash and working capital; the choice between debt and equity in financing a business; dividend policy; and identification and management of risk.

This unit provides an introduction to the theory, concepts, tools, techniques and applications of investment management. The Australian financial system is used for illustration. The emphasis is on passive investment management and asset pricing for money market instruments, bonds and equity securities and the use of derivatives for risk management.

This unit provides an introduction to the major classes of derivatives: forwards, futures, swaps and options. These are studied in detail with the objective of elucidating the ways in which these instruments can be used for the purposes of hedging, speculation and arbitrage. In addition to the analysis of derivative usage and market growth, considerable attention is given to the objective of gaining an understanding of the fundamentals of derivative pricing.

The general aim of this subject is to examine how financial and non-financial firms use key foreign exchange and interest rate products to manage the risk associated with their international investment and financing decisions. This subject compliments other aspects of managerial decision-making, including the marketing and production decisions of the international firm.