Financial Management and Analysis II

Subject 333-666 (2009)

Note: This is an archived Handbook entry from 2009. Search for this in the current handbook

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2009:

For information about these dates, click here.
Time Commitment: Contact Hours: 36 hours per semester (Semester 1, Semester 2).
Total Time Commitment: Not available
Prerequisites:

333-661 Principles of Finance, prior training in accounting equivalent to first year university level accounting. This subject is only available to those students that would satisfy the entry criteria for the Master of Applied Finance.
Corequisites: None
Recommended Background Knowledge: None
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability
Subject Overview: This is a capstone subject for the program for students with an accounting background. The subject first focuses on introducing and developing a framework for business analysis and valuation using financial statements. The subject aims to develop and apply technologies for valuing firms and for planning within the firm using financial statement analysis. Issues such as managers reporting strategy, the relevance of financial information and the effect of accounting quality on valuation will also be discussed. By the end of the course, students should have a better appreciation of the financial information and their role in valuation. This subject also exposes students to case studies describing actual business situations faced by financial managers, which requires analysis and decision-making.
Objectives: On successful completion of this subject students should be able to:
  • Explain how fundamental values (or "intrinsic values") are estimated;
  • Apply current technologies to value firms using financial information;
  • Explain business activities that determine value, and identify "value created for shareholders";
  • Describe how one would deal with accounting flexibility in valuation;
  • Explain the relevance of cash-flows, dividends, earnings and book values to the determination of share prices;
  • Explain and apply ratio analysis in valuation;
  • Synthesise, evaluate and compare the dividend discount model, discounted cash flow model and residual income model in valuing equities.
Assessment: One 3-hour examinations (70%), assignments totalling not more than 3000 words (30%).
Prescribed Texts: None
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • Oral Communication
  • Written Communication
  • Collaborative Learning
  • Problem Solving
  • Team Work
  • Statistical Reasoning
  • Application of theory to practice
  • Interpretation & Analysis
  • Critical Thinking
  • Synthesis of data and other information
  • Evaluation of data and other information
  • Using Computer Software
  • Accessing data and other information from a range of sources
Notes: Credit cannot be granted for both this subject and 333-665 Financial Management and Analysis I.
Related Course(s): Master of Applied Finance

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