CORPFIN 2502 - Business Valuation
North Terrace Campus - Semester 1 - 2021
General Course Information
Course Code CORPFIN 2502 Course Business Valuation Coordinating Unit Adelaide Business School Term Semester 1 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Prerequisites CORPFIN 1002 Course Description This course will provide the framework to price and value both securitised and non-securitised entities (whether that be specific assets or whole companies). This involves the utilisation of both accounting and financial analysis of the entity to determine value. The course will approach the subject from an applied viewpoint to enable participants to practise valuation methods. The course will also incorporate basic capital raising issues, from both the fixed income and equity perspectives.
Course Coordinator: Dr Paskalis GlabadanidisEmail: email@example.com
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course, students will be able to:
1. Conduct valuations based on the discounted cash flow method.
2. Conduct a relative valuation for a company.
3. Recognize conflicts of interest in valuation contexts
4. Critically analyse publically available information about what is occurring in financial markets.
5. Demonstrate a basic understanding of the fixed income securities market
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
1,2,5 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
3 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
3 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 ResourcesTextbook: Damodaran on Valuation, 2nd edition, 2006, John Wiley & Sons
Online LearningCourse Lecture notes as well as additional materials (data spreadsheets, etc.) will be made available on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesStudent learning in this course consists of following lectures supported by problem-solving tutorials developing material covered in lectures.
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 lectures throughout the semester plus one tutorial class each week.
Learning Activities Summary
Lecture/Week 1 Topics
Syllabus/Introduction to Valuation, DCF, Relative Valuation, Contingent Claim Valuation (Damodaran Chapter 1)
Lecture/Week 2 Topics
Estimating Discount Rates (Damodaran Chapter 2)
Lecture/Week 3 Topics
Measuring Cash Flows (Damodaran Chapter 3)
Lecture/Week 4 Topics
Forecasting Cash Flows (Damodaran Chapter 4)
Lecture/Week 5 Topics
Equity Valuation Models (Damodaran Chapter 5)
Lecture/Week 6 Topics
Online Test #1 (Week 6, Thursday 3pm-5pm)
Lecture: Firm Valuation Models (Damodaran Chapter 6)
Lecture/Week 7 Topics
Relative Valuation: First Principles (Damodaran Chapter7)
Lecture/Weel 8 Topics
Relative Valuation: Equity Multiples (Damodaran Chapter 8)
Lecture/Weel 9 Topics
Relative Valuation: Value Multiples (Damodaran Chapter 9)
Lecture/Week 10 Topics
Introduction to Options, Options Strategies and Payoffs, Binomial Option Pricing (Damodaran Chapter 12/Appendix)
Lecture/Week 11 Topics
Online Test #2 (Week 11, Thursday 3pm-5pm)
Valuing Equity/Debt in the Option Pricing Framework, Real Option Valuation (Damodaran Chapter 12/Appendix)
Lecture/Week 12 Topics
Introduction to Fixed Income Securities, Spot/Forward Interest Rates (Based on Lecture Notes and Tutorials)
Bond Valuation Using No Arbitrage Pricing, Term Structure Theories
Lecture/Week 13 (if needed)
Final exam overview
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 SummaryDue to the current COVID-19 situation modified arrangements have been made to assessments to facilitate remote learning and teaching. Assessment details provided here reflect recent updates.
Assessment Task Weighting Due Coverage Learning Outcome Online Test 1 30% Thursday, Week 6, 3pm-5pm (Adelaide time) Quiz covering one-stage DCF models from topics 1, 2, 3 and 4. 1-5 Online Test 2 30% Thursday, Week 11, 3pm-5pm (Adelaide time) Quiz covering firm DCF valuation models (topic 6) and relative valuation models (topics 7, 8 and 9). 1-5 Online Final Exam 40% TBC - Exam Period Coverage of the final exam will be topics 7, 8, 9, 10 and 11. 1-5 Total 100%
Assessment Related RequirementsIt is highly advisable that you attend as many of your tutorials as you can. The more material you master during class/tutorial time, the less time you will have to spend studying on your own. Therefore, it is in your best interest to attend all lectures and tutorials for the class. You shouldn't plan on cramming weeks of topics the night before a test or the night before the final exam. It is simply not possible and will most likely backfire.
Consultation times are on Wednesday between 1pm and 2pm in Nexus building in room 12.31. Please use the phone across the lifts on Level 12 to call the room and I will come and let you in.
Assessment DetailThe assessment components are as follows:
Online Tests (Week 6 and Week 11) 30% each
A 1 hour online test will be held in Week 6 on Thursday which will be open on MyUni between 3pm and 5pm (Adelaide time). A second 1 hour online test will be held in Week 11 on Thursday which will also be open on MyUni between 3pm and 5pm (Adelaide time). The first online test will cover Discounted Cash Flow (DCF) Valuation up until 2-stage Equity DCF Valuation models (topics 1 through 4 inclusive). while the second online test will cover Firm Valuation, Relative Valuation, Equity Multiples and Value Multiples (topics 5 through 9 inclusive). The online tests will be closed book but you can prepare a two-sided A4 cheat sheet with your own notes, formulas, etc., hand-written or typed.
Course Learing Outcome: 1
Online Test #1: 3pm-5pm (Adelaide time), Thursday, Week 6 [30%]
Online Test #2: 3pm-5pm (Adelaide time), Thursday, Week 11 [30%]
Final Exam [40%]
There will be a 3 hour exam covering topics subsequent to the first test (topics 6 through 11 inclusive).
Course Learing Outcome: All
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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