Course Outline - FINM7044 PDF

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Applied Valuation

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FINM7044 04130 - Rsch Sch of Finance, Actuarial Studies & App Stats - ANU College of Business and Economics

COURS E TOPI C

C L A S S N U M BE R

TERM

CLA S S S ECTI ON

CLASS A VA I L AB I L I T Y

M ODE OF DELI VERY

2986

First Semester, 2019

1

Active

In Person

CLASS START DATE

C L A S S E N D D AT E

CEN SUS DA TE

LAST DATE TO EN ROL

STU DEN T SPECI FI C PERMI SSI ONS

25/02/2019

31/05/2019

31/03/2019

04/03/2019

No

EN ROLLED S TU DEN TS

EN ROLM EN T LI M I T

I S C ON S E N T R E QU I R E D T O EN ROL?

I S C ON S E N T R E QU I R E D T O DROP?

272

999

No

No

M IN IM U M UNI TS

M AX I M U M U N I T S

6

6

PROPOSER NAME:

PROPOSED DATE:

APPROVED DATE:

Angela Malhi

22/11/2018

07/02/2019

Course Information  PHOTO

COURSE CONVENER



UID

Name

Email

Phone

u1025232

Dr Nhan Le

[email protected]

61250702

STUDENT CONSULTATION DAYS AND HOURS



DA YS

H OU R S (F RO M ) E. G. 1 5 : 00: 00

Thursday

15:00:00

H OU R S (T O) E. G. 16 :00: 00

17:00:00

COURSE CONVENER - RESEARCH INTERESTS

Corporate bankruptcy, capital structure, economic geography

ADMINISTRATIVE CONTACT



UID

Name

Email

Phone

u5260803

Ms Anna Pickering

[email protected]

6125 9045

ADD LECTURERS, TUTORS OR DEMONSTRATORS BELOW

R OL E

UID

N AM E



P H ON E

EM A I L

H OURS S T U D EN T C ON S U LT A T I O(NFR OM ) E .G. DA Y

Lecturer

u1025232

TUTORIAL REGISTRATION

Nhan Le

6125 0702

[email protected]

Thursday

1 5 : 00: 00

15:00:00

H OU R S (T O) E. G. 1 6: 00: 00

17:00:00

Tutorial signup for this course will be done via Wattle. Detailed information about signup times will be provided on Wattle or during your rst lecture. When tutorials are available for enrolment, follow these steps: 1.Log on to Wattle, and go to the course site 2.Click on the link “Tutorial enrolment” 3.On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter 4.Conrm your choice If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group ….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be nalised for you to have access to Wattle. SUPPORT FOR STUDENTS



The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable). • ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support • ANU Diversity and inclusion for students with a disability or ongoing or chronic illness • ANU Dean of Students for condential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University • ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload. • ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community. • ANUSA supports and represents undergraduate and ANU College students • PARSA supports and represents postgraduate and research students

Class Overview CLASS STRUCTURE AND CONTENT



W EEK OR S ES S I ON N U M B ER

S U M M AR Y OF AC T I VI T I ES

1

Course overview Valuation in context Readings KGW Ch 1; Ch 2; Ch 3

2

Building a company model Readings KGW Ch 9

3

Forecasting and model integrity Readings KGW Ch 6; Ch 10; Ch 11

4

Cost of capital Readings KGW Ch 13 Course Note 1

5

DCF valuation Readings KGW Ch 8; Ch 12; Ch 14

6

Multiple-based valuations Readings KGW Ch 16; Ch 17 Course Note 2, pp 1-6

7

Asset-based valuations Readings Damodaran Ch 19; Ch 25 KGW Ch 34 Course Note 2, pp 7-10

8

Incorporating growth potential Readings KGW Ch 7; Ch 27

9

Sensitivity and scenario analysis Readings Damodaran Ch 33 KGW Ch 15

10

The investment decision (forming a recommendation) Readings KGW Ch 4; Ch 5

11

Special issues: -Cross-border valuation -Valuing high growth rms

AS SE SS M EN T

Lecture to nalize teams

Online examination (via Wattle)

Assignment #1 due

Assignment #2 due

-Evaluating management - WACC as a value-driver Readings KGW Ch 23; Ch 29; Ch 32 CFA Code of Ethics; Standard of Practice Handbook, Part V (pp 127-147) 12

Lecture on employment in the nancial industry, review of past exam questions, exam hints Readings Practice Exam

RESEARCH-LED TEACHING

By working through corporate valuation cases, students will learn and exercise the necessary skills for nancial industry based research. With the distinct feature of learning by doing, this course will train students in critical analysis of real-world problems in corporate nancial decisions, and evaluation and communication of valuation results FIELD TRIPS IF RELEVANT

ADDITIONAL CLASS COSTS

REQUIRED RESOURCES

Prescribed textbook: Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6th Edition, Mc Kinsey & Co (John Wiley and Sons), 2015.[denoted ‘KGW ’] Students are expected to have access to a copy of the prescribed book for the duration of the semester. The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chiey Library. Other Reading Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012. CFA Institute Code of Ethics and Standards of Professional Conduct http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n6.1 CFA Institute Standards of Practice Handbook (Standard V) (SPH) http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n4.1

RECOMMENDED RESOURCES

Additional materials will be made available on Wattle, including supplementary course notes, selected analyst reports, CFA readings, example worksheets, and other relevant items. EXAMINATION MATERIAL OR EQUIPMENT

Non-programmable scientic calculator

Assessment Tasks ASSESSMENT REQUIREMENTS



The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item. ASSESSMENT SUMMARY T AS K N U M B ER



RE T U RN O F ASS ES SM EN T DA TE ( YYYY- M M -D D)

L I N KED L E ARN I N G OU T C O M ES

VA L U E ( % )

DU E D AT E ( YYYY -M M - DD )

1

20

2019-03-29

2019-03-29

1,3

2

25

2019-04-26

2019-05-10

1,2,3

3

15

2019-05-24

2019-07-04

1,2,3

4

40

2019-06-06

2019-07-04

1,2,3

ASSESSMENT TASK #



Assessment Task 1 Name of Assessment Task: Online examination - 1 hour duration Details of Task: Total weighting: 20% It is an online exam conducted via Wattle, consisting of multiple choice questions only. The questions will be of practical (numerical) nature and students will need to review and revise all material covered in lectures 1 to 5, inclusive, as well as the corresponding tutorial material. More details regarding the exam will be provided as the exam approaches.

Assessment Task 2 Name of Assessment Task: Company model and DCF valuation Details of Task: It is a group-based assignment. Team formation will be done by the Lecturer in week 2. Note: It is requested that any students intending to drop out of the course make their decision prior to team formation. Objective Produce a company model, and provide a DCF valuation of your company reecting estimates of future cash ows from current operations. What You Need To Submit 1.Company model – integrated nancial accounts, forecasts, valuation, summary tables and charts 2.Explanatory notes and assumptions – to be incorporated within the model (excel le) as needed 3. Use wattle (online) submission 4. All les submitted to be named as follows: FINM7044 Ass (number) - Team (number) - (description) See le “Assignment Guidelines” on Wattle for further details on assignments, including objectives, requirements, guidance and marking criteria.

Assessment Task 3 Name of Assessment Task: Multiple and Asset Based Valuation Details of Task: It is a group-based assignment. Team formation will be done by the Lecturer in week 2. Note: It is requested that any students intending to drop out of the course make their decision prior to team formation. Objective Round out the valuation with a range of appropriate multiple-based and asset-based valuations. What You Need To Submit 1.Company model – revised nancial accounts, assumptions and forecasts 2.Additional worksheets that detail all the multiple-based and asset-based valuation analysis 3. Use wattle (online) submission 4. All les submitted to be named as follows: FINM7044 Ass (number) - Team (number) - (description) See le “Assignment Guidelines” on Wattle for further details on assignments, including objectives, requirements, guidance and marking criteria.

Assessment Task 4 Name of Assessment Task: Final Examination – 3-hour duration Details of Task: Total weighting: 40% This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. A mixture of theory and practical (numerical) questions will be asked. Students will need to review and revise all material (weeks 1-12) pertaining to the course. Students will be provided with further details regarding the exam as it approaches. The marking criteria will be based on model solutions and answers prepared by the lecturer. The nal exam is designed to: (i) test the student’s understanding and comprehension of the course material; (ii) ensure they have obtained the learning objectives of the course. Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Further information about the examination will be provided in class and on Wattle closer to the time of the examination

PARTICIPATION

Workshops Commencing week 2, the lecturer will conduct a workshop of one hour per week. The week 2 workshop will introduce the “KGW model” template, and offer general advice on modelling in Microsoft Excel. From week 3, general guidance will be given on how to complete analysis for your company, including discussing methods and addressing any common problems or matters raised by students. At least one member from each teamMUST attend, although all should attend with prepared questions. EXAMINATION(S)

Final examination is of 3-hour duration. This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. Refer to "Assessment tasks" for further information.

Assignment Submission EXTENSIONS AND PENALTIES



Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

ONLINE SUBMISSION



Online Submission: In cases where assessment material is digitally produced, the default form of submission should be online. Please keep a copy of the assignment for your records. The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit ANU Online. HARDCOPY SUBMISSION



No hardcopy submission is required.

LATE SUBMISSION



No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded. RETURNING ASSIGNMENTS

Students will have their assignments and marks returned to them via email.  RESUBMISSION OF ASSIGNMENTS

Related Policies and Other Information EDUCATIONAL POLICIES

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include: • Student Assessment (Coursework) Policy and Procedure • Special Assessment Consideration Policy and General Information • Student Surveys and Evaluations • Deferred Examinations • Student Complaint ResolutionPolicy and Procedure MARK MODERATION



Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to nal results being released. REFERENCING REQUIREMENTS



Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the le named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website. DISTRIBUTION OF GRADES



Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualication type learning outcomes. Since rst semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University. PRIVACY NOTICE



The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users rst agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: rst name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available. ACADEMIC INTEGRITY



Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualication that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may nd useful for your studies. OTHER INFORMATION TO BE PUBLISHED ON P&C

Announcements Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notications of cancellations. Notications of emergency cancellations of lectures will be posted on the door of the relevant room. Scaling Your nal mark for the course will be based on the raw marks allocated for each of your assessment items. However, your nal mark may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed the scaled mark of that student), and may be either up or down. Support for Students The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/ Referencing Requirements Referencing is essential to demonstrate that you have read thoroughly, and acknowledges the ideas and materials of other authors in your work. Students are required to apply the ‘Harvard St...