Financial Analysis and Valuation

Subject ACCT30006 (2016)

Note: This is an archived Handbook entry from 2016.

Credit Points: 12.5
Level: 3 (Undergraduate)
Dates & Locations:

This subject is not offered in 2016.
Time Commitment: Contact Hours: One 3-hour seminar per week
Total Time Commitment:

170 hours
Prerequisites:

Both of:

Subject
Study Period Commencement:
Credit Points:
January, Semester 1, Semester 2
12.50
Summer Term, Semester 1, Semester 2
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 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

Contact

yunyan.zhang@unimelb.edu.au

Subject Overview:

This subject provides the capstone course in business financial analysis and firm valutaion. The subject will include a detailed analysis of a firm's business strategy, financial statements and additional disclosures to assess the quality, profitability, risk, future prospects and value of the firm.
Learning Outcomes:
  • Compare different accounting methods used in financial statements for valuation purposes.
  • Assess the quality of financial information and make adjustments if necessary.
  • Analyse financial statements to obtain the relevant information (profitability, risk, and growth potential) for valuing equities.
  • Explain business activities that determine value, identify “value created for shareholders”.
  • Develop skills to build forecasts of a firm’s future financial performance.
  • Analyse how fundamental values (or “intrinsic values”) are estimated
  • Synthesise, evaluate, and compare the dividend discount model, the discounted cash flow model, and the residual income model in valuing equities
  • Investigate the difference between fundamental, market and book values
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 is not available as a breadth subject.
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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