FINC608-22S2 (C) Semester Two 2022

Applied Financial Analysis and Valuation

15 points

Details:
Start Date: Monday, 18 July 2022
End Date: Sunday, 13 November 2022
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 31 July 2022
  • Without academic penalty (including no fee refund): Sunday, 2 October 2022

Description

The use and application of accounting information to financial problems.

Learning Outcomes

In terms of specific learning objectives, students, by the end of the course, will be able to:

1. Recast company financial reports (income statement, balance sheet etc.)  in a standard form so that the reports of different companies can be directly compared with each other or the reports of one company can be compared over time.
2. Reconstitute the financial reports of companies to reverse the effects of (perhaps misleading) company accounting policy decisions.
3. Forecast company funding needs from pro-forma balance sheets and income statements via the Additional Funds Needed model.
4. Value the equity of a company using a present value method that takes information directly from the company’s financial reports.
5. Employ the Black-Scholes option pricing model to value a range of investment projects of various types (projects where the choices to delay, extend or, even in the future, abandon all have a calculable value).
6. Perform a diagnosis as to whether a company is entering (or is in) a state of financial distress, employing several different techniques (Altman’s Z-score, Argenti’s balanced scorecard, the Black-Scholes option pricing model applied to real options).
7. Undertake a critical evaluation of recent developments in the research record concerning financial distress (this is a postgraduate undertaking only)
8. Perform an analysis of a firm’s equity employing the Bloomberg database and its related tools.

Prerequisites

Subject to approval of Head of Department

Restrictions

Equivalent Courses

Timetable 2022

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Tuesday 09:00 - 10:00 A2 Lecture Theatre
18 Jul - 28 Aug
12 Sep - 23 Oct
Lecture B
Activity Day Time Location Weeks
01 Wednesday 10:00 - 11:00 A6 Lecture Theatre
18 Jul - 28 Aug
12 Sep - 23 Oct
Lecture C
Activity Day Time Location Weeks
01 Thursday 13:00 - 14:00 E5 Lecture Theatre
18 Jul - 28 Aug
12 Sep - 23 Oct
Computer Lab A
Activity Day Time Location Weeks
01 Tuesday 10:00 - 13:00 Meremere 101A Trading Room
18 Jul - 28 Aug
12 Sep - 23 Oct

Course Coordinator

Warwick Anderson

Indicative Fees

Domestic fee $1,009.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All FINC608 Occurrences

  • FINC608-22S2 (C) Semester Two 2022