Business and Financial Analysis

Subject ACCT30006 (2013)

Note: This is an archived Handbook entry from 2013.

Credit Points: 12.50
Level: 3 (Undergraduate)
Dates & Locations:

This subject is not offered in 2013.
Time Commitment: Contact Hours: One 3-hour seminar per week
Total Time Commitment: Not available
Prerequisites:

Both of:

Subject
Study Period Commencement:
Credit Points:
Semester 1
12.50
Corequisites:

None
Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.
Non Allowed Subjects:

None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

Semester 1: yuanq@unimelb.edu.au

Semester 2: yunyan.zhang@unimelb.edu.au

Subject Overview:

This subject provides the capstone course in business and financial analysis focusing on shareholder value analysis, valuation and analysis of business segments and industry and competitor analysis. The subject will include a detailed analysis of the financial statements and additional disclosures to assess the liquidity, performance and financial position of the firm.
Objectives:

• Investigate the difference between fundamental, market and book values
• Synthesise, evaluate, and compare the dividend discount model, the discounted cash flow model, and the residual income model in valuing equities
• Analyse how fundamental values (or “intrinsic values”) are estimated
• Explain what growth means to the investor, and how to analyse it
• Apply current technologies to value firms from financial information.
• Explain business activities that determine value, identify “value created for shareholders”.
• Analyse the financial statements to get the relevant information for valuing equities.
• Compare different accounting methods used in financial statements for valuation purposes.
• Explain how financial analysis is developed for strategy and planning
Assessment:

A 2-hour end-of-semester examination (50%), a written group assignment totalling not more than 5000 words due in the 12th week in the semester (30%), a mid-semester test (15%) and participation marks (5%). Successful completion of this subject requires a minimum pass (50%) in the end-of-semester exam.
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject potentially can be taken as a breadth subject component for the following courses:

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

  • High level of development: team work; application of theory to practice; interpretation and analysis; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.

  • Moderate level of development: collaborative learning; written communication; critical thinking; use of computer software; receptiveness to alternative ideas.

  • Some level of development: oral communication; statistical reasoning.

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