Unit convenor and teaching staff |
Unit convenor and teaching staff
Convener
Keith Woodward
Refer to iLearn
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
ACCG611 or AFIN613 or ACST603 or AFIN858
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit develops students' abilities to conduct equity valuation for investment purposes. This advanced module introduces the techniques used by equity financial analysts to measure the worth of a company and its investments. Students assume the role of a financial analyst and learn the mechanics of financial valuation by: performing industry and financial analysis, measuring accounting quality, estimating discount rates, forecasting cash flows, and ultimately issuing a buy/hold/sell recommendation on the firm based on the estimated target price.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Assessment criteria for all assessment tasks will either be provided on the unit iLearn site. It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment tasks (not including the final exam mark) will not be addressed.
Name | Weighting | Hurdle | Due |
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First Quiz | 10% | No | Week 4 |
Second Quiz | 10% | No | Week 8 |
Valuation Report | 20% | No | Week 12 (refer to iLearn) |
Final Exam | 60% | No | University Examination Week |
Due: Week 4
Weighting: 10%
The first quiz aims to assess student progress in the course.
Type of Collaboration: Individual Submission: In class Format: 15 multiple choice questions Length: 45 minutes Inherent Task Requirements: Answer questions based on prior lectures Late Submission:Extensions.
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Due: Week 8
Weighting: 10%
The second quiz aims to assess student progress in the course.
Type of Collaboration: Individual Submission: In class Format: 15 multiple choice questions Length: 45 minutes Inherent Task Requirements: Answer questions based on prior classes Late Submission:Extensions
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Due: Week 12 (refer to iLearn)
Weighting: 20%
Students groups will write a report valuing a company listed on the Australian Securities Exchange (ASX). The valuation report will be written for the board of directors of a potential acquirer. The final exam will also contain questions based on the assignment to test individuals' contributions. The assessment weight of the assignment-related questions in the final exam will be 20 percentage points of the 60 percentage points total.
Type of Collaboration: Group Submission: Must be submitted electronically via iLearn. Submission of the group assignment will be in semester academic week 12. Students will be advised in class of the format of the group assignment and the exact date and time of the group assignment submission deadline. Format: Refer to iLearn Length: Refer to iLearn Inherent Task Requirements: Refer to iLearn Late Submission:Late Report Submission
No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.
Due: University Examination Week
Weighting: 60%
The examination will be a closed-book examination. Students will be permitted to take ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned at the end of the final examination.
Type of Collaboration: Individual Submission: Refer to iLearn Format: The examination may consist of multiple choice questions and written questions requiring longer, more complex and calculated answers. Length: 2 hours with 10 mins reading time Inherent Task Requirements: Refer to iLearn Late Submission: No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application under Special Consideration Policy is made and approvedRequired Text: | "Damodaran on Valuation" Second Edition by Aswath Damodaran. ISBN: 978-0471751212 The text is available from the Macquarie University Co-op Bookshop (https://www.coop.com.au/s/macquarie-university). You can also check the 2nd hand bookshop or search online. Macquarie University library has a few copied as well. Other relevant reading materials besides the textbook will be provided and accessible via iLearn. |
Unit Web Page: |
Course material is available on the learning management system at http://iLearn.mq.edu.au You are strongly encouraged to regularly visit the website and use it as a resource centre to assist with your learning. All lecture material and examples, homework questions and answers, administration issues, and supplementary readings will be available on this site as the course progresses. If you are unable to access the website because you are not aware of or have forgotten your username and password, please contact the IT helpdesk. All information can be found at http://informatics.mq.edu.au/help/ With regards to assistance in using iLearn please visit the following link. http://www.mq.edu.au/ iLearn/student_info/index.htm You can follow the tabs on the left, i.e., “Getting Started” and “Access iLearn” Please remember to log out when you have finished using iLearn. Failure to do so could result in unauthorised access to your iLearn account. |
Technology Used and Required: | Students will require a calculator (scientific or financial) capable of handling exponents. Simple financial functions (as found on financial calculators) will not be required. If the calculator is to be used in exams then it must NOT be capable of storing text or formulae OR it must easily be demonstrated that all memory has been cleared. Students must be familiar with spreadsheet technology (eg MS Excel or equivalent) |
Delivery Format and Other Details: |
Classes
Teaching and Learning Activities Contact sessions are three hours. There will be one short break during the session. Students are required to prepare for each lecture by reading the material set from the required textbook. Students are encouraged to ask questions, initiate discussions, and provide input from relevant personal experience. |
Recommended Readings: | |
Other Course Materials: |
Week | Date (Monday) | Seminar |
1 | 29.7.19 | Module 1- Introduction, Sources of Information, and Industry Analysis |
2 | 5.8.19 | Module 2- Financial Reporting and Analysis |
3 | 12.8.19 | Module 3- Market Valuation: Relative Valuation Techniques (PART 1) |
4 | 19.8.19 | Module 3- Market Valuation: Relative Valuation Techniques (PART 2) First quiz (10%) |
5 | 26.8.19 | Module 4- Advanced Estimation of Discount Rates |
6 | 2.9.19 | Module 4- Advanced Estimation of Discount Rates |
7 | 9.9.19 | Module 5- Quality of Financial Statement and Reliance on Accounting Numbers |
Break | Mid-semester break from Monday 16.09.19 to Friday 27.09.19 | |
8 | 30.9.19 | Module 6- Discounted Cash Flow (DCF) Valuation - Calculating Free Cash Flows (PART 1) Second quiz (10%) |
9 | 7.10.19 | Module 6- Discounted Cash Flow (DCF) Valuation - Calculating Free Cash Flows (PART 2) |
10 | 14.10.19 | Module 7 - Forecasting Free Cash Flows |
11 | 21.10.19 | Module 8- Issues in Estimating Terminal Value |
12 | 28.10.19 | Module 9- A Practitioner's Approach to Valuing Firms: The Case of ValueCo Inc. |
13 | 4.11.19 | Revision Class |
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Supplementary exams
Information regarding supplementary exams, including dates, is available at:
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
If you are a Global MBA student contact globalmba.support@mq.edu.au
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
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