This unit provides students with an understanding of how organisations make investment and financing decisions. Students will demonstrate how to apply various valuation methods and theories to real-world settings. Students will also learn to appreciate the limitations of tools in practical settings. Specific topics include capital budgeting, investment decision rules, discounted cash flow, real options valuation, cost of capital, capital structure, dividend policy and evaluation methods such as WACC and APV. Students will demonstrate the necessary skills for making value-changing financial decisions to maximise an organisation’s value.
On successful completion of this unit, students will be able to:
Selected readings form the VU Library will be made available via the unit VU Collaborate site. There is no prescribed text for this unit, as it emphasises experiential and student-centred learning.
This unit is studied as part of the following course(s):