EQUITY SECURITIES

FIN5EQS

2020

Credit points: 15

Subject outline

This subject provides you with the necessary skills required to undertake equity asset valuation tasks carried out in an investment management or brokerage environment. After completing this subject, you will be able to undertake equity research projects, conduct financial and industry analysis and provide valuation decisions and recommendations about listed equity securities. As such, you will have acquired the equity valuation knowledge and skills required of CFA Levels 1 and 2. Through lessons in our financial trading room, you will develop the skills necessary to work as an effective member of an investment research team, as well as to enhance your independent and collaborative learning skills. Finally, you will have the opportunity to consider ethical issues associated with undertaking investment research.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorMuhammad Al Mamun

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites BUS5IAF or equivalent

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsEquity Asset: Valuation (3 rd edition)PrescribedPinto, J. W., E. Henry, T.R. Robinson, and Stowe, J.D.JOHN WILEY & SONS: NEW JERSEY, 2015

Graduate capabilities & intended learning outcomes

01. Explain the conceptual basis of methodologies used to value a listed company shares

Activities:
Lectures, tutorials
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. Analyse the financial statements of a company for the purpose of valuation

Activities:
Lectures, tutorials
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Analyse the competitive nature of an industry

Activities:
Lectures, tutorials
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. Estimate inputs required to apply the appropriate valuation methods

Activities:
Lectures, tutorials, project
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. Demonstrate the skills of a financial analyst, to research, analyse and evaluate the intrinsic value of a public and private company, using appropriate digital tools and information services

Activities:
Lectures, tutorials, project
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

06. Present, in written and oral form, the intrinsic valuation of a company, and your investment advice in respect of the company's financial securities.

Activities:
Project
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

07. Develop the skills required to work effectively as a member of a team

Activities:
Tutorials, Project
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)

08. Analyse and resolve ethical issues raised by the investment research process.

Activities:
Tutorials, project
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour,Study and Learning Skills)

Subject options

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Start date between: and    Key dates

Melbourne, 2020, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMuhammad Al Mamun

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 10 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
One hour formative examinationBroadly equivalent to 500 words.10 01, 02, 03, 04, 05
Group Assignment and PresentationEquivalent to 2000 words per student. (Note: Group written report graded for 20% and presentation and teamwork individually graded for 10%)30 01, 02, 03, 04, 05, 06, 07, 08
Two hour final examinationEquivalent to 2000 words Hurdle requirement:Students must achieve at least 50% in the final examination.50 01, 02, 03, 04, 05, 06
Online and/or in-class formative assessment tasks500-words equivalent10 01, 02, 03, 07, 08