CORPFIN 7021 - Corporate Investment Evaluation (M)

North Terrace Campus - Semester 2 - 2019

This course examines techniques and issues in corporate finance with a focus on corporate investment decisions. Topics include valuation of growth opportunities, techniques for evaluating capital investment proposals, application of option pricing models in a corporate setting, merger and acquisition strategies, corporate diversification and divestitures, incentive-aligning compensation including executive stock options, managerial optimism and corporate governance mechanisms.

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Course Details

Course Code	CORPFIN 7021
Course	Corporate Investment Evaluation (M)
Coordinating Unit	Adelaide Business School
Term	Semester 2
Level	Postgraduate Coursework
Location/s	North Terrace Campus
Units	3
Contact	Up to 3 hours per week
Available for Study Abroad and Exchange	Y
Prerequisites	ACCTING 7019, CORPFIN 7005, CORPFIN 7033/COMMERCE 7033, ECON 7200,
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Dr Ivan Obaydin

Lecturer-in-charge:	Name:	Dr Ivan Obaydin
	Location: Email:	Room 12.23, 10 Pulteney St ivan.obaydin@adelaide.edu.au

Course Timetable

The full timetable of all activities for this course can be accessed from Course Planner.

Course Learning Outcomes

On successful completion of this course, students will be able to:

1. Explain and interpret conceptual models and arguments in corporate finance
2. Recognize the model appropriate for structuring a given financial problem
3. Understanding the data requirements of a chosen model
4. Understanding how outputs are sensitive to changed data or assumptions
5. Interpreting the results consistent with the model structure

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

University Graduate Attribute	Course Learning Outcome(s)
Deep discipline knowledge informed and infused by cutting edge research, scaffolded throughout their program of studies acquired from personal interaction with research active educators, from year 1 accredited or validated against national or international standards (for relevant programs)	1-5
Critical thinking and problem solving steeped in research methods and rigor based on empirical evidence and the scientific approach to knowledge development demonstrated through appropriate and relevant assessment	1-5
Teamwork and communication skills developed from, with, and via the SGDE honed through assessment and practice throughout the program of studies encouraged and valued in all aspects of learning	1-5
Career and leadership readiness technology savvy professional and, where relevant, fully accredited forward thinking and well informed tested and validated by work based experiences	1-5
Intercultural and ethical competency adept at operating in other cultures comfortable with different nationalities and social contexts able to determine and contribute to desirable social outcomes demonstrated by study abroad or with an understanding of indigenous knowledges	1-5
Self-awareness and emotional intelligence a capacity for self-reflection and a willingness to engage in self-appraisal open to objective and constructive feedback from supervisors and peers able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate	1-5

Learning Resources

Required Resources

The text book for the course is Ross, S., R. Westerfield, J. Jaffe and B. Jordan, Corporate Finance, 11e, McGraw-Hill International, 2016. (NOTE: Previous editions are not suitable).

Online Learning

All materials are available on MyUni.

Learning & Teaching Modes

The course is taught via seminar-based classes, reinforced through class participation in problem solving.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.

Students in this course are expected to attend all Seminars throughout the semester.

Learning Activities Summary

Semester Week	Topic #	Topic	Required Reading
1	1	Corporate financial planning and growth	Ch.3
2	2	Valuing growth opportunities	Ch. 9 EVA.pdf Jones.pdf Jensen.pdf
3	3	Advanced capital budgeting and risk analysis	Ch.4-Ch.7
4	4	Options - concepts and pricing models	Ch. 22
5	5	Options - applications in corporate finance	Ch. 22 Ch. 23
6	6	Real options in project valuation	Ch. 23
7	7	Corporate takeovers	Ch. 29 Mitchell.pdf
8		In-class test
		Mid-semester break
9	8	Corporate diversification & diversification discount	Stowe & Xing.pdf
10	9	Managerial optimism	Heaton.pdf
11	10	Corporate governance (Group Assignment & Presentation)	Related papers
12	11	Review Lecture and Assignment Presentation

Note: Reading may be varied during the semester. All .pdf files are uploaded to MyUni.

The University's policy on Assessment for Coursework Programs is based on the following four principles:

Assessment must encourage and reinforce learning.
Assessment must enable robust and fair judgements about student performance.
Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
Assessment must maintain academic standards.

Assessment Summary

Assessment Task	Weighting	Learning Outcome
In-class Test: closed book	30%	All
Group Assignment & Presentation	15%	All
Final Exam: 3-hour closed book	55%	All
Total	100%

Assessment Related Requirements

To pass this subject, 50% overall is required. Neither the test nor the assignment, are redeemable. More details will be given in class.

Assessment Detail

In class test covers topics 1-6, while group assignment covers topic 10.

More information will be provided closer to the dates.

Submission

In class test will be collected on the day of the test.
Group assignment is due on Oct 17 2019.

Further information will be provided during the course.

Course Grading

Grades for your performance in this course will be awarded in accordance with the following scheme:

M10 (Coursework Mark Scheme)
Grade	Mark	Description
FNS		Fail No Submission
F	1-49	Fail
P	50-64	Pass
C	65-74	Credit
D	75-84	Distinction
HD	85-100	High Distinction
CN		Continuing
NFE		No Formal Examination
RP		Result Pending

Further details of the grades/results can be obtained from Examinations.

Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

Final results for this course will be made available through Access Adelaide.

Student Feedback

The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator