16634 Financial Analysis6cp
Requisite(s): 16234 Property Valuation
This is a core subject usually taken in Year 1 of the Bachelor of Property Economics. The subject relates to professional practice in terms of using the financial calculator to value leasehold and investment properties. The subject focuses on financial theory and its applications in the property industry. An understanding of financial concepts and their practical application is required in the analysis and valuation of cashflows as they pertain to property. The principal topics covered in this subject are: time value of money (TVM), capitalisation rates, nominal and effective rates of interest, dual rates, valuation of property on leasehold interest, and discounted cash flow analysis.
This subject involves students in the use of a financial calculator to assess the present value of future cash flows which are in perpetuity and for fixed terms using a variety of techniques which include time value of money formulas, discounted cash flow techniques and capitalisation methodologies. Prior to the class, students are able to engage with the lecturer through viewing an online video and by completing an online quiz on the operation and functionality of the financial calculator. During the lectures, student activities involve practicing questions similar to those that will be on the test/exam and self-assessing by comparing their answers with provided solutions.
Detailed subject description.
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- Commonwealth-supported students: view subject fees at Fees Search: Commonwealth-supported
- Postgraduate domestic fee-paying students: fees are charged according to the course enrolled in; refer to Domestic Fees Search: Postgraduate and Research
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- Subject EFTSL: 0.125