Corporate Valuation and Risk Management

Course aim

To provide students at the advanced undergraduate level with an enhanced understanding of the principles and practices underlying valuation and risk management as applied to public and private firms. To develop an analytical attitude towards and more refined abilities with the application of valuation and risk management principles applicable to corporate finance, including modern approaches that deal with strategic aspects of corporate finance decisions.

Course content

Project analysis and discounted cash flows: project cash flow forecasts and risk analysis. Estimating the cost of capital for firms and projects: alternative methods for establishing required returns for projects; cost of capital of the firm; divisional required returns. Firm valuation techniques and models: relative valuation of listed firms; valuation of private equity, debt valuation; project selection; and case studies. Derivatives and the valuation of real investments: contractual options; real options, strategic options. Risk management frameworks, policies and implementation systems; in the non-financial corporate sector. Measuring financial risks: portfolio analysis and the measurement of risk; market risk and CFaR. The management of risks in non-financial corporations.

Textbook(s)

Titman S and Martin J 2011, Valuation: The Art and Science of Corporate Investment Decisions, 2nd edn, Prentice Hall/Pearson, USA

Prerequisite(s)

Nil

Corequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
BANK 3004	Portfolio and Fund Management

Teaching method

Component	Duration
INTERNAL, CITY WEST
Lecture	2 hours x 13 weeks
Tutorial	1.5 hours x 12 weeks
EXTERNAL, CITY WEST, DISTANCE EDUCATION
External	2 hours x 15 weeks
INTERNAL, OFFSHORE, HONG KONG BAPTIST UNIVERSITY
Workshop	10 hours x 2 weeks
Tutorial	2.5 hours x 4 weeks
INTERNAL, OFFSHORE, TAYLOR'S BUSINESS SCHOOL
Lecture	2 hours x 14 weeks
Tutorial	2 hours x 13 weeks

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment 1 - Group research assignment, Assignment 2 - Group empirical assignment, Open book examination

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 3)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
Non-award tuition fees are set by the university. To determine the cost of this course, go to:
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Not all courses are available on all of the above bases, and students must check to ensure that they are permitted to enrol in a particular course.

* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.