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CORPFIN 7021 - Corporate Investment & Strategy (M)

North Terrace Campus - Semester 1 - 2015

This course examines techniques and issues in corporate finance with a focus on corporate investment decisions. Topics include stock valuation using free cash flow technique, valuation of growth opportunities, determining sustainable growth rates, estimation of beta using online data, techniques for evaluating international investment proposals, application of option pricing models in a corporate setting, and evaluation of techniques for measuring financial performance.

  • General Course Information
    Course Details
    Course Code CORPFIN 7021
    Course Corporate Investment & Strategy (M)
    Coordinating Unit Adelaide Business School
    Term Semester 1
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ACCTING 7019, CORPFIN 7005, COMMERCE 7033
    Corequisites ECON 7200
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Dr Jane Luo

    Lecturer-in-charge: Name: Dr Juan (Jane) LUO
    Location:
    Telephone:
    Email:
    Room 12.06, 10 Pulteney St
    8313 0133 (work)
    jane.luo@adelaide.edu.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from .

  • Learning Outcomes
    Course Learning Outcomes
    By the end of this course students should be able to:
    1. Explain and interpret conceptual models and arguments in corporate finance
    2. Recognize the model appropriate for structuring a given financial problem
    3. Understanding the data requirements of a chosen model
    4. Understanding how outputs are sensitive to changed data or assumptions
    5. Interpreting the results consistent with the model structure
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1-5
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1-5
    A proficiency in the appropriate use of contemporary technologies. 1-5
  • Learning Resources
    Required Resources
    The text book for the course is Ross, S., R. Westerfield, J. Jaffe and B. Jordan, Corporate Finance, 10e, McGraw-Hill International, 2013. (NOTE: Previous editions are not suitable).
    Online Learning
    All materials are available on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures supported by problem-solving tutorials developing material covered in lectures.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.

    Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.
    Learning Activities Summary
    Week beginning Topic # Topic Required Reading
    2 March 1 Financial statements analysis & financial models Ch.3
    9 March Public holiday, No class
    16 March 2 Valuing growth opportunities
    Tutorial starts this week
    1. Ch. 9 pp. 273-293
    2. EVA.pdf
    3. Jones.pdf
    4. Jensen.pdf
    23 March 3 After-tax cost of capital & dividend imputation 1. BFOT.pdf
    2. BMPR.pdf
    30 March 4 Options & corporate finance: basic concepts Ch. 22 pp. 681-695
    6 April Public holiday, No class
    Mid-semester break
    27 April Test #1: 27 April, 8.00am in Nexus10, UB40, Seminar Rm 4Y
    27 April 5 Options & corporate finance: applications
    Tutorials for Topic 4 during this week
    1. Ch. 22 pp. 695-714;
    2. Ch. 23 pp. 726-730
    4 May 6 Real options Ch. 23 pp. 730-747
    11 May 7 Mergers & acquisitions 1. Ch. 29
    2. Mitchell.pdf
    18 May Test #2: 18 May, 8.00am in Nexus10, UB40, Seminar Rm 4Y
    18 May 8 Corporate diversification& Corporate governance
    Tutorials for Topic 7 during this week
    1. Stowe & Xing.pdf
    2. Yermack.pdf
    25 May 9 CEO overoptimism & myopia 1. Heaton.pdf
    2. Stein.pdf
    1 June Tutorial for Topic 9 during this week.
    Note: Reading may be varied during the semester. All .pdf files are uploaded to MyUni.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Date and time Weighting Topics covered related learning outcome
    Class Test 1: 50 minutes 27 April, 8.00 am 20% 1,2 & 3 All
    Class Test 2: 50 minutes 18 May, 8.00 am 20% 4,5 & 6 All
    Final Exam: 3 hours, Closed-book Exam period beginning
    20 June. Exam times to be released on Access Adelaide
    60% All All
    Total 100%
    Assessment Related Requirements
    To gain a pass for this course, a mark of at least 50% must be obtained on the final exam as well as a total of at least 50% overall. Students not achieving the minimum final exam mark will be awarded no more than 49. The tests are compulsory and not redeemable. Failure to sit a test without adequate reason will result in zero marks awarded for the test.
    Assessment Detail

    No information currently available.

    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through .

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

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