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Unit of study_
FINC6021: Corporate Valuation
2024 unit information
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 fundamental concepts of present value, cost of capital, security valuation, asset pricing models, optimal capital structures, derivative pricing and some related accounting concepts. The unit 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. Basic valuation concepts from accounting are reconciled with the finance theory on which firm value ultimately stands. Students are asked to make extensive use of Excel or similar software in valuation exercises.
Unit details and rules
Managing faculty or University school:
Finance
| Code | FINC6021 |
|---|---|
| Academic unit | Finance |
| Credit points | 6 |
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Prerequisites:
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FINC5001 |
|---|---|
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Corequisites:
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None |
| Prohibitions:
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None |
| Assumed knowledge:
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None |
At the completion of this unit, you should be able to:
- LO1. demonstrate an understanding of the various approaches to valuation analysis
- LO2. solve practical financial problems using a range of valuation techniques
- LO3. understand and create pro-forma financial statements for a variety of business structures
- LO4. estimate a firm's cost of capital
- LO5. generate an estimate of firm value and an appropriate recommendation based on an assessment of relevant quantitative and qualitative information
- LO6. analyse critically the models covered in the unit and be able to discuss their appropriateness under various scenarios
- LO7. interpret the financial implications of valuation results
- LO8. ascertain the relevance of information sources for different valuation models
- LO9. test the reasonableness of financial valuation results
- LO10. solve for value estimates using a range of developed methods
- LO11. use the functionality of Microsoft excel to create pro-formas financial statements, undertake cost of capital calculations, and perform scenario based analyses
- LO12. identify firm structural issues and be able to assess the value of changes in investment and operational policies
- LO13. effectively communicate valuation results through a range of quantitative and qualitative outputs
- LO14. express key assumptions and forecasts for which valuation hinges on.
Unit availability
This section lists the session, attendance modes and locations the unit is available in. There is a unit outline for each of the unit availabilities, which gives you information about the unit including assessment details and a schedule of weekly activities.
The outline is published 2 weeks before the first day of teaching. You can look at previous outlines for a guide to the details of a unit.
| Session | MoA ? | Location | Outline ? |
|---|---|---|---|
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Semester 2 2024
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Normal day | Camperdown/Darlington, Sydney |
Outline unavailable
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Modes of attendance (MoA)
This refers to the Mode of attendance (MoA) for the unit as it appears when you’re selecting your units in Sydney Student. Find more information about modes of attendance on our website.
