Course overview
This course will provide students at the advanced undergraduate level with an enhanced understanding of the principles and practices underlying valuation and risk assessment as applied to public and private firms. Students will develop an analytical attitude towards and more refined abilities with the application of valuation and risk assessment principles applicable to corporate finance, including modern approaches that deal with strategic aspects of corporate finance decisions and their valuation impacts. Project analysis and discounted cash flows: project cash flow forecasts and risk analysis; estimating the cost of capital for firms and projects: alternative methods for establishing required returns for projects, cost of capital of the firm, divisional required returns; risk assessment frameworks in the non-financial corporate sector; measuring financial risks: portfolio analysis and the measurement of risk in non-financial corporations; firm valuation techniques and models: relative valuation of listed firms, valuation of private equity, debt valuation, project selection, real options, strategic options, and the valuation of real investments; case studies.
Course learning outcomes
- Identify and construct information suited to the valuation of public and private firms.
- Explain the weaknesses and strengths of alternative valuation frameworks.
- Evaluate alternative models and methodologies designed for the valuation of firms and projects, and prepare valuations using alternatives appropriate to the industry, activity and firm.
- Identify the risk factors that are most likely to impact firm valuations from a corporate finance perspective, and evaluate alternative methods for including consideration of these risks in valuations.
- Demonstrate UniSA Business Enterprise Skills in the context of the Finance discipline: i) Problem Solving (intermediate and advanced levels); and ii) Written Communication (advanced level).