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Essentials of Corporate Valuation (FNCE30011)
Undergraduate level 3Points: 12.5On Campus (Parkville)
About this subject
- Overview
- Eligibility and requirements
- Assessment
- Dates and times
- Further information
- Timetable(opens in new window)
Contact information
Overview
Availability | Semester 2 |
---|---|
Fees | Look up fees |
This subject examines the key concepts and methodologies used in the valuation of corporations and other business interests including stand‐alone projects, joint ventures and private equity. Topics include: cashflow‐based approaches, multiples‐based approaches, forecasting cashflows and earnings, estimating discount rates, adjustments for leverage, adjustments for imputation, the valuation of franking credits, adjustments for flexibility, valuation by replication, valuation in the digital economy. There will be an extensive use of real‐world examples and cases throughout the course.
Intended learning outcomes
- Identify and explain the role of valuation in the economy
- Understand and apply cashflow-based valuation methods
- Understand and apply multiples-based valuation methods
- Analyse and interpret discount rates and earnings multiples
- Demonstrate and explain how to properly account for leverage and flexibility
- Examine the impact of imputation on alternative valuation methods
- Apply the principle of replication to value complex financial securities
- Critically evaluate the use of alternative valuation methods in the digital economy
Generic skills
- High level of development: written communication; problem solving; application of theory to practice; critical thinking; interpretation and analysis; evaluation of data and other information
- Moderate level of development: collaborative learning; statistical reasoning and analysis; synthesis of data and other information; use of computer software; accessing data and other information from a range of sources
Last updated: 3 November 2022
Eligibility and requirements
Prerequisites
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE20005 | Corporate Financial Decision Making |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
Code | Name | Teaching period | Credit Points |
---|---|---|---|
FNCE20001 | Business Finance |
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
|
12.5 |
and one of:
Code | Name | Teaching period | Credit Points |
---|---|---|---|
ECOM20001 | Econometrics 1 |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
ECON20003 | Quantitative Methods 2 |
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
MAST20004 | Probability |
Semester 2 (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
|
12.5 |
MAST20006 | Probability for Statistics | Semester 1 (On Campus - Parkville) |
12.5 |
MAST20018 | Discrete Maths and Operations Research | Semester 2 (On Campus - Parkville) |
12.5 |
MAST20029 | Engineering Mathematics |
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
|
12.5 |
MAST20005 | Statistics |
Summer Term (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
|
12.5 |
Corequisites
None
Non-allowed subjects
None
Inherent requirements (core participation requirements)
The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.
Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home
Last updated: 3 November 2022
Assessment
Description | Timing | Percentage |
---|---|---|
Two individual 1000-word assignments
| From Week 5 to Week 10 | 50% |
One 2-hour examination
| During the examination period | 50% |
Last updated: 3 November 2022
Dates & times
- Semester 2
Principal coordinator John Handley Mode of delivery On Campus (Parkville) Contact hours One three‐hour seminar per week Total time commitment 170 hours Teaching period 29 July 2019 to 27 October 2019 Last self-enrol date 9 August 2019 Census date 31 August 2019 Last date to withdraw without fail 27 September 2019 Assessment period ends 22 November 2019
Last updated: 3 November 2022
Further information
- Texts
Prescribed texts
You will be advised of prescribed texts by the subject coordinator
Last updated: 3 November 2022