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Corporate Finance - ECFS866

Corporate Finance is concerned with understanding the link between shareholder value and corporate investment and financing strategies. Students will explore how corporate finance skills can contribute to developing value creating strategies for an organisation. Building on valuation and financial analysis skills from pre-requisite courses, the unit explores how to value an organisation, and assess key investment decisions including capital investment projects, mergers, acquisitions and international investments. The impact on value of risk, optionality and strategic choices is also explored. Valuation approaches utilised include a range of Discounted Cash Flow models, Residual Income and Multiples valuation. The unit considers how to develop practical, value creating financing strategies, including the optimal mix of debt and equity, capital management and debt management strategies. Financing strategies in the context of M&A and international investments are also considered. The unit addresses how to calculate cost of capital for companies and projects, and how to incorporate financing impacts into a valuation. Practical issues in the implementation of the shareholder value objective, including the impact of governance strategies, alternative ownership structures and performance measures are considered.

Credit Points: 4
When Offered:

AFC Term 1 CBD - Applied Finance Centre, City Campus, January to March

AFC April Beijing - Offshore students only

AFC Term 2 CBD - Applied Finance Centre, City Campus, March to June

AFC Term 3 CBD - Applied Finance Centre, City Campus, June to September

AFC Term 3 MB - Applied Finance Centre, Melbourne Campus, June to September

Staff Contact(s): Dr Tony Carlton

Admission to MAppFin or GradDipAppFin Prerequisite Information


AFCP801 or (ECFS865 and ECFS867)

Unit Designation(s):
Assessed As: Graded
Offered By:

Department of Applied Finance and Actuarial Studies

Faculty of Business and Economics

Course structures, including unit offerings, are subject to change.
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