26805 Valuation, Capital Structure and Budgeting
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Credit points: 3 cp
Subject level:
Postgraduate
Result type: Grade and marksThere are course requisites for this subject. See access conditions.
Description
The subject expands on the traditional business evaluation criteria by introducing real options and valuation techniques in the presence of uncertainty. It also focuses on the impact of behavioural biases on valuations with specific applications to private equity firms and startups. It discusses various forms of finance and develops candidates' understanding of capital budgeting. The subject equips participants with advanced financial management skills applied in a range of organisational contexts including corporates, private equity and start-ups.
Subject learning objectives (SLOs)
| 1. | Estimate the value of projects in the presence of uncertainty using a range of methods |
|---|---|
| 2. | Evaluate the impact of behavioural biases on the capital budgeting process |
| 3. | Develop and critically analyse solutions to mitigate the impact of behavioural biases in valuation |
Contribution to the development of graduate attributes
This subject is designed to provide students with a deep understanding of the impact of behavioural biases on project and firm valuations. This process involves creative thinking and the application of knowledge from different disciplines in estimating value under uncertainty.
This subject contributes to the development of the following graduate attribute(s):
- Professional and technical competence
Teaching and learning strategies
This subject is delivered through a mix of online learning, three live online webinars and online consultations. The subject features a mix of theoretical concepts and application in the contemporary context that is designed to apply evidence-based judgement, analytical and creative skills to solve complex business problems.
Students have access to online resources, and self-directed learning activities and are expected to study online content provided via the UTS learning management system. They are required to complete online learning activities, which will help identify knowledge gaps and inform discussions. They are required to engage in online discussions with their peers and academics. Webinars are designed to present the theory and practice of the subject’s content. Students are required to complete pre-work activities before attending webinars. Discussions focus on the application of concepts, techniques and methods.
A mandatory, on-line formative assessment provides students with further feedback to direct their self-study. Ongoing general and individual feedback will be provided throughout the subject via consultation sessions. A summative assessment provides feedback on students' comprehension and application of learning. Students also receive formal feedback on assessment tasks.
Content (topics)
- Valuation under uncertainty
- Behavioural finance and valuation
- Private equity and startups
Assessment
Assessment task 1: Quizzes (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1 |
|---|---|
| Weight: | 30% |
| Length: | Once opened, students will have 60 minutes to complete the quiz. |
| Criteria: |
*Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Case Study Analysis (Individual)
| Objective(s): | This addresses subject learning objective(s): 2 and 3 |
|---|---|
| Weight: | 70% |
| Length: | There is a 3000 word limit for the case study not including references. |
| Criteria: |
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Minimum requirements
Students must achieve at least 50% of the subject’s total marks
References
Baker, H. Kent and Dutta, Shantanu and Saadi, Samir, (2010) Management Views on Real Options in Capital Budgeting, Journal of Applied Finance, 2011-03-22, Vol.21 (1), p.18 -29
A. Szyszka (2013) Behavioral Finance and Capital Markets: How Psychology Influences Investors and Corporations 2013th Edition ISBN-13: 978-1137338747
Anaïs Hamelin; Marie Pfiffelmann (2015) The private equity premium puzzle: a behavioural finance approach, International Journal of Entrepreneurship and Small Business, Vol.24 No.3, pp.335 - 356