UNIVERSITY OF CAPE TOWN

FTX2020F BUSINESS FINANCE

Course Document
2024

This is an important document for outlining the essential requirements of the course. Please read
it carefully and keep it in a safe place.
1. Course Objectives

The course is designed to provide an overview on activities, decisions, and techniques used to fund and manage businesses
efficiently. The course also provides an introduction to investment and financial markets.

2. Course Pre-requisites

A DP in STA1001F/S/H or equivalent, or a DP in MAM1010F/S or equivalent. A student also needs to have either passed or
be registered for ACC1006F or ACC1020H concurrent to FTX2020F.

3. Staff

Lecturer and Course Convener Lecturer Programme Administrator

Nomthandazo Jwara A/Prof. Pradeep Brijlal Ms. Thaania Lutta
Office: LS 4.78 Office: LS 4. Office: LS 4.54
Email: Email: Pradeep.brijlal.ac.za Email: Thaania.Lutta@uct.ac.za
nomthandazo.jwara@uct.ac.za

4. Lecture Time Table

Day Time Venue- Term 1 Venue- Term

2
Tuesday 15h00 James LT4A James LT4A
Wednesday 15h00 M320 M320
Thursday 15h00 James LT4A James LT4A
Friday 15h00 M320 M320
*If there are any changes to the venues, students will be informed

5. Administration

UCT’s Amathuba system is the sole communication channel used for this course. Students are expected to visit the
Amathuba site daily for announcements and/or updates. Please note that communication from Amathuba will be sent to
a UCT-registered email address only. The onus is on the student to read their email messages. UCT will not be held
responsible for any technical (or otherwise) error that results in non-delivery of emails. The student is responsible for
maintaining their mailboxes.

6. Prescribed Textbook

The prescribed textbook for FTX2020F is Corporate Finance: A South African Perspective, 3rd ed. by Els, G., Erasmus, P.,
& Viviers, S. (2020). In addition to the textbook, it is advised to keep up to date with financial news and general affairs.
Please note the prescribed textbook is mandatory and each student should have their own copy. The resources provided
on the Amathuba site do not serve as a substitute, in any form, for the textbook.

7. Grading and Assessments

The coursework and final exam are weighted as follows:

Assessment Contribution
Test 1 20%
Test 2 20%
Final Exam 60%
Total 100%

The passing grade for FTX2020F is 50%. Should a student be exempted from either test, the weighting proportions will not
apply, instead the weight of the missed test will be transferred to the exam. Should a student be exempt from both tests,
the exam will carry a weight of 95%. All tests and exams will be written on campus in person unless circumstances dictate
otherwise. There are no makeup tests for this course, therefore, students should not bank on them.

Note: There are no remarks, only recounts. This is UCT policy

8. Exemption from a Test

Any student who fails to write a scheduled test within the prescribed time due to medical reasons must submit a medical
certificate within 7 days to the course administrator (Thaania.lutta@uct.ac.za). It is the responsibility of the student to
ensure that the course administrator receives and records the class test exemption. Letters from medical practitioners
submitted at the end of the semester when your DP is in jeopardy will not be accepted. Failure to comply with this policy
will result in a mark of ZERO being awarded for the missed test.
Should a student be exempted from either test, the weighting proportions will not apply, instead the weight of the missed
test will be transferred to the exam. Should a student be exempt from both tests, the exam will carry a weight of 95%.
There will be no additional tests or examinations.

9. Duly Performed (DP) Requirements

A 40% for coursework. This includes the following

 Attendance of a minimum of seven (7) out of ten (10) tutorial sessions.
 Submission of at least seven (7) out of ten (10) homework submissions.
 Writing the two class tests.

10. Test Schedule

Test Date Scope

Test 1 19 March – MCB LT1 and Chris Hani - 18h00 Week 1 to 4
Test 2 23 April – LS2A - 18h00 Week 5 to 8
*If there are any changes to the venues, students will be informed

In the event of test clashes, the student must notify the course convener and administrator in good time so that an
arrangement can be made

11. Final Exam

Details about the final exam will be communicated via Amathuba closer to the start of the examination period. It is the
sole responsibility of the student to ensure they are aware of and have access to any such communication. The contents
of the exam will cover all chapters completed during the semester. The exam format will be similar to the tests.

12. Tutorials

Only registered students for this course can sign up (electronically) for tutorials on Amathuba on a first-come-first-serve
basis. A list of proposed tutorial groups will be available on the Amathuba site from 12 February 2024, until Friday 01 March
2024. Students should examine the times and decide which tutorial they can attend and belong to, (Be sure to sign up early
as the system prevents the oversubscription of a venue, each tutorial group is limited to a certain number of students). It
is the student’s responsibility to ensure they sign up for the tutorial session they will be able to attend. Attendance registers
will be taken during each session. All tutorials will be on campus unless such circumstances dictate otherwise. Attendance
of all tutorials is mandatory, failure to attend tutorials will result in DPR.

A student is only allowed to attend the tutorial they have signed up for. If your tutorial falls on a public holiday, you can
join any tut group during that week. Each topic will have homework that has to be submitted every Monday. All submissions
must be handwritten and uploaded on Amathuba under “assignments”. The first submission is due on Monday 19 February
2024 at 10h00.

13. WhatsApp Group

It is not expected of the lecturer, tutors, or the class representative to establish or maintain any WhatsApp groups.

14. Lecture Recordings

Lectures are not recorded, and no lecture recordings of previous years (COVID-19 years) will be posted on the Amathuba
site.
15. Classes

The course will be offered on campus and will follow the scheduled timetable. The contents of each chapter scheduled will
be uploaded and made available on Amathuba each Monday at 08:00. It is the responsibility of the student to ensure they
are able to obtain the contents uploaded on Amathuba. It is not the responsibility of the lecturer, nor the tutors to email
any of the resources to the student.

16. Copyright

No resource of any kind may be reproduced or sold. All material supplied by UCT for this course, remains the sole property
of UCT and the authors thereof. Any person found guilty of such offence will be prosecuted to the full extent of the law.
Should any of these resources be found on CourseHero, the University will take legal action against all parties involved. The
Copyright Act provides criminal penalties and imprisonment per offence and immediate suspension of all studies.

17. Lecture Programme

Week Date Day Lecture topic Chapter Lecturer Tutorial

no. No. initials no.
1 Feb 12 Mon
13 Tues Introduction to Financial 1 NJ
Management
14 Wed Introduction to Financial Manag 1 NJ
15 Thurs Financial Statements (FS) 2 NJ
16 Friday Financial Statements 2 NJ

2 19 Mon Tutorial 1
Intro & FS
20 Tues Ratio analysis (RA) 3 NJ
21 Wed Ratio analysis 3 NJ
22 Thurs Ratio analysis 3 NJ
23 Friday Ratio analysis 3 NJ

3 26 Mon Tutorial 2
RA
27 Tues Time value of money (TVM) 4 PB
28 Wed Time value of money 4 PB
29 Thurs Time value of money 4 PB
Mar 01 Friday Time value of money 4 PB

4 Mar 04 Mon Tutorial 3

TVM
05 Tues Investment appraisal methods (IAM) 5 PB
06 Wed Investment appraisal methods 5 PB
07 Thurs Investment appraisal methods 5 PB
08 Friday Investment appraisal methods 5 PB

5 Mar 11 Mon Tutorial 4

IAM
12 Tues Estimating relevant cash flows (ERCF) 6 PB
13 Wed Estimating relevant cash flows 6 PB
14 Thurs Appraising investment risk 7 PB
15 Friday Appraising investment risk 7 PB
6 Mar 18 Mon Tutorial 5
ERCF
19 Tues Bond valuation and interest rates 8 NJ TEST 1
(BV)
20 Wed Bond valuation and interest rates 8 NJ
21 Thurs Public Holiday – Human Rights Day
22 Friday Bond valuation and interest rates 8 NJ

VACATION 25 MARCH TO 28 MARCH

Apr 01 Mon Public Holiday – Family Day

7
02 Tues Share valuation (SV) 9 NJ Tutorial 6
(BV)
03 Wed Share valuation 9 NJ
04 Thurs Share valuation 9 NJ
05 Friday Share valuation 9 NJ

8 Apr 08 Mon Tutorial 7

(SV)
09 Tues Risk and Return (RR) 10 NJ
10 Wed Risk and return 10 NJ
11 Thurs Risk and return 10 NJ
12 Friday Risk and return 10 NJ

9 Apr 15 Mon Tutorial 8

(RR)
16 Tues Cost of Capital (COC) 11 PB
17 Wed Cost of capital 11 PB
18 Thurs Cost of capital 11 PB
19 Friday Cost of capital 11 PB

10 Apr 22 Mon Tutorial 9

(COC)
23 Tues Sources of finance and Capital 12 PB Test 2
structure (SOF and CS)
24 Wed Sources of finance and CS 12 PB
25 Thurs Sources of finance and CS 12 PB
26 Friday Sources of finance and CS 12 PB

11 Apr 29 Mon Tutorial 10

(SOF)
30 Tues Working capital management (WCM) 14 PB
May 01 Wed Public Holiday – Workers Day
02 Thurs Working capital management 14 PB
03 Friday Working capital management 14 PB

12 May 06 Mon Tutorial 11

(WCM)
07 Tues Distribution policy (DP) 13 NJ
08 Wed Distribution policy 13 NJ
09 Thurs Distribution policy 13 NJ
10 Friday Distribution policy 13 NJ
 13 May 13 Mon
14 Tues Revision PB
15 Wed Revision NJ
16 Thurs Consolidation Day 1
17 Friday Consolidation Day 2

14 May 20 Mon Consolidation Day 3

21 Tues Consolidation Day 4
22 Wed Consolidation Day 5

EXAMS BEGIN 23 May 2024

*Lecture program subject to change

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