CORPFIN 7039NA - Equity Valuation & Analysis (M)
Ngee Ann Academy - Trimester 2 - 2016
General Course Information
Course Code CORPFIN 7039NA Course Equity Valuation & Analysis (M) Coordinating Unit Business School Term Trimester 2 Level Postgraduate Coursework Location/s Ngee Ann Academy Units 3 Contact Up to 2 hours per week Available for Study Abroad and Exchange N Prerequisites ACCTING 7019NA, CORPFIN 7005NA, COMMERCE 7033NA, ECON 7200NA Course Description The course analyses companies from a fundamental perspective in order to derive an intrinsic value for stock. Topics: Fundamental analysis, determination of growth, discount cash flows models including dividend discount models, free cash flow models and residual income models; relative valuation models including price-earnings and price-book multiples; valuation of private companies, estimating the discount rate, mergers and acquisitions and valuation issues.
Course Coordinator: Mr Graeme Gould
The full timetable of all activities for this course can be accessed from Course Planner.The delivery of the subject is arranged into two intensive sessions.
The first five topics (Topics 1 – 4) will be covered in the first Intensive Lecture Session
The last four topics (Topics 5 – 8) will be covered in the second Intensive Lecture Session. The dates of the Intensive Lecture Sessions are:
Session 1: June 24 - 26
Session 2: July 15 - 17
The times for each Intensive Lecture Session will be as follows:
Friday: 7 pm – 10 pm
Saturday: 1 pm – 8 pm
Sunday: 9 am – 4 pm
Each session will involve:
· a presentation of issues involved
· discussion relating to suggested activities
· analysis of problems examples
· discussion of appropriate case studies
· spreadsheet examples
Course Learning OutcomesBy the end of this course students should be able to:
1. Understand and execute various valuation models
2. Analyse financial statements and extract relevant information
3. Recognise and appreciate limitation as well as benefits of valuation models
4. Appreciate the level of subjectivity involved
5. Acquire good research skills
6. Demonstrate good interpersonal communication skills
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 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
2,3 & 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
6 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
4 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
6 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
Required ResourcesText Books (s)
Pinto, Henry, Robinson and Stowe, Equity Asset Valuation, 2nd Edition, John Wiley & Sons, 2010.
Damordaran, Aswath ‘Investment Valuation: Tools and techniques for determining the value of any asset’ 2nd edition, 2002, John Wiley & Sons.
Benninga, Simon Z and O.H Sarig, Corporate Finance: A Valuation Approach, International Edition, 1997, McGraw-Hill.
Lonergan, W., 2000, The Valuation of Business, Shares and Other Equity, 3rd Edition.
Lundholm, R. and R.Sloan. 2007. Equity Valuation and Analysis. 2nd Edition.
Reilly, Frank K. and K.C. Brown, Investment Analysis and Portfolio Management, 7th Edition, 2002.
JASSA (The Finsia Journal of Applied Finance) Australian professional/ academic publication
Financial Analysts Journal. US professional/ academic publication
Arzac, E.R., Valuation for Mergers, Buyouts, and Restructuring, 2005, John Wiley & Sons.
Copeland, T., T.Koller and J.Murrin, Valuation: Measuring and Managing the Value of Companies, 3rd Edition, 2000.
Study guide, lecture notes & Additional readings
Please read study guide and lecture notes in advance of lectures
Learning & Teaching Activities
Learning & Teaching Modes'An introduction to valuation
Text Study Guide Topic 1 An introduction to valuation & finanial maths Chp 1 Chp 1 Topic 2 Understanding financial reports Chp 2 Topic 3 Discounted cash flow models Chp 3 & 4 Chp 3 Topic 4 Fundamental analysis Chp 4 Topic 5 Estimating the discount rae Chp 2 Chp 5 Topic 6 Market based valuations Chp 6 Chp 6 Topic 7 Takeovers Chp 7 Chp 7 Topic 8 Financial distress, cross shareholding and private firms Chp 8 Closing thoughts
No information currently available.
Learning Activities Summary
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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 SummaryTest 15%
To pass EVA, students must obtain a grade of at least 40% in the final exam
Assessment Related RequirementsNotes on Assessment
1. To gain a pass for this course, a mark of at least 40% must be obtained on the examination as well as a total of at least 50% overall. Students not achieving the minimum exam mark will be awarded no more than 49.
2. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the final examination because of poor hand-writing.
3. Assessment marks prior to the final exam will be displayed on the course website. Students are encouraged to check their marks and notify the Lecturer-in-Charge of any discrepancies.
1. Test: the test is compulsory and will take place during the second intensive, Saturday Aug 16th. The test will be of short answer type, be of 1 hour duration and will examine the first 4 topics.
2. Assignments: The assignment will be handed out during the first intensive and will require the compilation of pro- forma financial statements, free cash flows and estimates of present value. (Topics 1- 4). The assignment due date is Friday August 29th and should be handed in to the college by close of business day. The assignment is non-redeemable.
Each assignment can be done in a group of no more than 3 students. It is expected that each student contribute equally to the assignment otherwise marks will be deducted. Assignments should be handed into the College in the first instance. They should be in Word format for text and Excel for spreadsheets
3. Exam: A final exam will cover all topics and will be open book. The final exam will be of 2.5 hours duration and consist of multiple choice questions and short answer type questions.
To pass EVA, students must obtain a grade of at least 40% in the final exam.
Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 20% mark reduction for each day that it is late. Assignments are non-redeemable.
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No information currently available.
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.
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