Outline

Overview

This unit applies all aspects of finance theory to the general problem of valuing companies and other financial assets. This requires a synthesis of the concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures and some related accounting concepts. The subject aims to reach a level of practical application that allows students to understand both the theoretical frameworks and institutional conventions of real-world corporate valuations.

Unit details and rules

Academic unit	Finance
Credit points	6
Prerequisites ?	FINC2012
Corequisites ?	None
Prohibitions ?	FINC3005
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Shumi Akhtar, shumi.akhtar@sydney.edu.au
Lecturer(s)	Shumi Akhtar, shumi.akhtar@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Record+)	Final exam It is 'mendatory' to pass 'Final Exam' component to pass overall FINC 3015.	50%	Formal exam period	2 hours
Outcomes assessed:
Assignment	Individual Case Study Report Case study	25%	Week 10 Due date: 02 May 2022 at 23:59 Closing date: 09 May 2022	10 pages
Outcomes assessed:
Assignment	Major Case Study Report Case study	25%	Week 13 Due date: 23 May 2022 at 23:59 Closing date: 30 May 2022	25 Pages
Outcomes assessed:
= hurdle task ? = group assignment ? = Type B final exam ?

Assessment summary

Detail information can be found on Canvas. Also please read the information below carefully about HURDLE Task for FINAL EXAM:

Final exam (50%): This assessment is listed as HURDLE TASK. An assessment that is listed as HURDLE TASK means you must undertake the assessment and achieve a mark above a minimum standard. Students who fail to achieve this minimum standard in this assessment, even when their aggregate mark for the entire unit is above 50%, will be given a Fail grade for the unit. As a result the student's academic transcript will show a fail grade and the actual mark achieved if between 0-49 and a fail grade and a capped moderated mark of 49 for all other marks. The hurdle mark for this assessment is 40% (e.g., student must get 20 out of 50 (or 40 out of 100) in the FINAL EXAM to pass this course).

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	1. Introductory concepts in financial valuations; 2. Mainstream valuation techniques; 3. Price versus value; 4. Valuation biases	Lecture (2 hr)
Week 02	1. Building pro-forma statements; 2. Financial statement analysis	Lecture (2 hr)
Week 02	1. Introductory concepts in financial valuations; 2. Mainstream valuation techniques; 3. Price versus value; 4. Valuation biases	Tutorial (1 hr)
Week 03	Analysing the firm environment	Lecture (2 hr)
Week 03	1. Building pro-forma statements; 2. Financial statement analysis	Tutorial (1 hr)
Week 04	Analysing firm operations	Lecture (2 hr)
	Analysing the firm environment	Tutorial (1 hr)
	Workshop 1 (Workshop starts from Week 4)	Workshop (1 hr)
Week 05	Forecasting and valuing cash flows	Lecture (2 hr)
	Analysing firm operations	Tutorial (1 hr)
	Workshop 2	Workshop (1 hr)
Week 06	Project risk analysis	Lecture (2 hr)
	Forecasting and valuing cash flows	Tutorial (1 hr)
	Workshop 3	Workshop (1 hr)
Week 07	The cost of capital	Lecture (2 hr)
	Project risk analysis	Tutorial (1 hr)
	Workshop 4	Workshop (1 hr)
Week 08	Relative valuation and the market for comparables	Lecture (2 hr)
	The cost of capital	Tutorial (1 hr)
	Workshop 5	Workshop (1 hr)
Week 09	Enterprise valuation	Lecture (2 hr)
	Relative valuation and the market for comparables	Tutorial (1 hr)
	Workshop 6	Workshop (1 hr)
Week 10	Valuation in a private equity setting	Lecture (2 hr)
	Enterprise valuation	Tutorial (1 hr)
	Workshop 7	Workshop (1 hr)
Week 11	Earnings dilution, incentive compensation, and project selection	Lecture (2 hr)
	Valuation in a private equity setting	Tutorial (1 hr)
	Workshop 8	Workshop (1 hr)
Week 12	Guest Lecture	Lecture (2 hr)
	Earnings dilution, incentive compensation, and project selection	Tutorial (1 hr)
	Workshop 9 (Note: This is final workshop and no more workshops will run after week 12)	Workshop (1 hr)
Week 13	Review and Final Exam Preparation	Lecture (2 hr)
Week 13	Case Presentations	Tutorial (1 hr)

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use.

Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit will be placed on Canvas. The following reference text(s) are recommended:

Titman, S. and Martin, J.D, “Valuation: The Art and Science of Corporate Investment Decisions” (3rd Edition), Pearson, 2020.
Pinto, J., Henry, E., Robinson, T., Stowe, J., “Equity Asset Valuation (3rd Edition), 2015. ISBN-13: 978-1119104261

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. Explain the approaches to and solve practical financial problems using a range of valuation techniques
LO2. Critically evaluate the models and approaches covered in this Unit of Study
LO3. Use Microsoft Excel effectively to model and solve valuation problems
LO4. Effectively communicate valuation results through a range of quantitative and qualitative outputs
LO5. Work collaboratively in a team to address and resolve complex valuation problems, while sharpening negotiation and influencing skills

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

Improvements are part of the evolution of this course. These will be discussed in class.

Additional information

Work, health and safety

There are no specific WHS requirements for this unit.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Work, health and safety

Disclaimer

On this page

Useful links

FINC3015: Financial Valuation: Case Study Approach

Semester 1, 2022 [Normal day] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Work, health and safety

Disclaimer

On this page

Useful links