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20500 Financial Valuation and Strategy (Capstone)

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2019 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

This subject develops an understanding of the relationship between financial information and multinational corporate strategic decisions. Analytical skills using financial tools are integrated with economic fundamentals to aid in decisions involving cross-border operations and performance evaluation. This subject encourages a broad perspective by focusing on financial implications of decisions.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. Appraise various financial and economic characteristics and links to firm strengths
2. Evaluate a firm's strengths and weaknesses including foreign operations
3. Discuss the impact of cross-border transactions and operations on financial performance of the firm and its valuation
4. Critically evaluate strategic improvements including mergers and acquisitions and their effects on profitability and risk

Course intended learning outcomes (CILOs)

This subject also contributes specifically to the following program learning objectives:

  • Show an understanding of essential concepts necessary for a career in business (1.1)
  • Demonstrate interrelationships between differing business disciplines (1.2)
  • Locate, select and analyse relevant data and resources (2.1)
  • Critically evaluate data and resources in the context of relevant academic literature (2.2)
  • Apply critical and creative thinking to address issues in business (2.3)
  • Critically analyse and produce written disciplinary texts for academic and professional audiences (3.1)
  • Produce oral presentations suitable for academic and/or professional audiences (3.2)
  • Demonstrate and critically reflect on how individuals work in teams in an inclusive manner (3.3)
  • Demonstrate an awareness of conflicting ethical demands of various stakeholders within business (4.1)
  • Evaluate business responses to ethical issues and dilemmas (4.2)
  • Demonstrate work-ready disciplinary knowledge (5.1)
  • Apply technical skills necessary for professional practice in business (5.2)

Contribution to the development of graduate attributes

This subject integrates topics from accounting, management, economics and finance core subjects to develop skills and knowledge relating to financial information and multinational corporate strategic decisions. This subject relates financial tools and economic fundamentals to decision-making across borders and the effect on firm performance. This subject develops analytical skills in using financial metrics and encourages an expansive perspective in dealing with corporate decisions.

Teaching and learning strategies

The subject will be taught using a combination of large lectures and smaller tutorials. The lectures provide the structure of the topic area, discussion of the theory and some practical examples. Tutorials provide an opportunity to discuss ideas, issues and make practical application of the theory, as well as encouraging students to think in a creative manner to solve real world problems. Use is made of the UTS web-based communication tool UTSOnline, which will be used to share information, provide feedback and encourage interaction between staff and students.

Content (topics)

  • Company strategies
  • Ratio analysis interpretation
  • Cash flow analysis
  • Profitability and risk analysis
  • Equity and firm valuation

Assessment

Assessment task 1: Case Study (Written Assignment and Presentation - Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

This addresses program learning objectives(s):

1.1, 1.2, 2.2, 3.1, 3.2, 3.3, 5.1 and 5.2

Weight: 50%
Length:

Written report: 3000 words, weight 30%. Presentation: 20 Minutes including time for questions and discussions, weight 20%.

Assessment task 2: Final Exam (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

This addresses program learning objectives(s):

2.1, 2.3, 4.1 and 4.2

Weight: 50%
Length:

The final exam is of 3 hours duration.

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Subramanyam, K.R, and Wild, J.J., Financial Statement Analysis, 11th Edition, McGraw-Hill, 2014. ISBN 9780078110962.

Recommended texts

Lundholm, R. and Sloan, R., Equity Valuation & Analysis, McGraw Hill, 2004.


Stickney, C. P., Brown, P. R. and Wahlen, J.M., Financial Reporting and Statement Analysis,
6th Edition, Thomson, 2006.