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This subject gives each student in the Master of Management (Finance) the opportunity to use the skills acquired in their coursework to analyze the financial outlook of an Australian listed company. Students will be assigned to teams for this work. Each team will be given a micro-cap company listed on the Australian Stock Exchange to analyze. The objective of the team analyses is an ‘analyst report’ on the company. To complete the report, each team must look at the company through three lenses. They must assess the company from:
1. a value investor’s perspective,
2. a commercial banking perspective, and
3. a mergers and acquisition perspective.
Each perspective will form a section in the report. In the value investor section, the core challenge for the team is to develop a well-founded valuation of the company. In the commercial banking section, the team must determine the maximum amount of a commercial bank might be willing to lend the company based on the valuation and prudent banking criteria. In the mergers and acquisition section, each team must assess whether shareholder value might be enhanced by engaging in M&A activity. This could be merging with or acquiring another firm or selling, carving-out or spinning-off part of the existing firm. This is the most freewheeling section in the report because it asks each group to place their assigned company within the general business environment of Australia.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Identify through the use of case studies and other mediums financial problems and evaluate these problems from a holistic view having regard to all stakeholders.
- Synthesize and apply discipline specific knowledge from the compulsory subjects common to the Master of Management (Finance) courses to the identification, measurement, management and reporting of financial problems and solutions.
- Apply strategic approaches to the resolution of financial problems confronting corporate entities, capital market participants and regulators.
- Develop research skills to assist in decision making and the formulation of valid and justifiable arguments to support suggested solutions to problems.
- Present high quality verbal and written presentations of a standard expected of industry practitioners.
- Develop skills related to working as part of a research team consistent with expectations of industry practitioners.
On successful completion of this subject, students should have improved the following generic skills:
- The ability to recognize the implications for different parties (owners, managers and finance intermediaries) of any one financial decision;
- Critical and evaluative thinking in relation to conflicts between different classes of owners of a firm, between the owners and managers of the firm, and between the suppliers of financial capital and the suppliers of human capital to the firm;
- Negotiation skills through an understanding of the potentially very different importance placed by investors, managers and financial intermediaries on the various parts of a single financial problem (such as the maturity, interest rate and security of a new bond issue);
- Synthesis of data and other information through discussion of alternatives in financial decision making;
- Decision-making skills through making a single recommendation of the best choice in applied settings when the various parties affected by that decision do not share a set of common preferences; and
- Ethical thinking and work practice skills in financial decision making through the analysis of case studies and applied settings involving conflicts of interest between investors, managers and financial intermediaries.
Last updated: 26 March 2020