This course is part of the Essentials of Corporate Finance Specialization

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Paul Kofman +1 more instructor

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Essentials of Corporate Finance SpecializationThe University of Melbourne

About this Course

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In this course, participants will develop an understanding of the intuitive foundations of asset and investment valuation, and how alternative valuation techniques may be used in practice. This is part of a Specialization in corporate finance created in partnership between the University of Melbourne and Bank of New York Mellon (BNY Mellon). 
View the MOOC promotional video here: http://tinyurl.com/h75pzt6

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Course 4 of 5 in the

Essentials of Corporate Finance Specialization

Approx. 16 hours to complete

English

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Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 4 of 5 in the

Essentials of Corporate Finance Specialization

Approx. 16 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructors

Instructor rating

4.8/5 (10 Ratings)

Paul Kofman

Dean, Faculty of Business and Economics

Sidney Myer Chair of Commerce

80,359 Learners

5 Courses

Sean Pinder

Associate Professor

Faculty of Business and Economics

80,359 Learners

5 Courses

Offered by

The University of Melbourne

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Syllabus - What you will learn from this course

Week1

Week 1

3 hours to complete

Defining Attitudes Towards and Alternative Measures of Risk

This week we will define a statistical measure of stand-alone risk as being the standard deviation of returns. We will describe three alternative attitudes towards risk, settling on risk aversion as being the standard assumption made in financial markets. We will then analyse the impact of combining assets into a portfolio upon both risk and return and then quantify the benefits from diversification by comparing performance against a suitable benchmark.

3 hours to complete

6 videos (Total 58 min), 7 readings, 2 quizzes

6 videos

Alternative Approaches to Valuation and Investment - Overview2m1.0 Welcome and Introduction2m1.1 Measuring stand-alone risk (Just the same old standard deviations)13m1.2 Alternative attitudes towards risk (I don’t hate risk, I’m just averse to it...)13m1.3 Portfolio Return and Risk (The more the merrier…)11m1.4 Defining the Diversification Benefit (It’s All About the Eggs and Baskets...)14m

7 readings

Course Syllabus10mYour Teaching Team10mWeek 1 Outline10mStart of Course Survey10mResources10mSocial Media10mStudy Tools and Tips10m

2 practice exercises

Week 1 Practice Quiz - This quiz does not contribute to your final grade30mWeek 1 Graded Quiz - This quiz contributes 10% towards your final grade30m

Week2

Week 2

2 hours to complete

Linking risk with expected return

This week we differentiate between systematic and unsystematic risk and explain how the expected returns that are reflected in the prices of assets should be linked to only one type of risk. We illustrate how the Capital Asset Pricing Model might be used to link systematic risk with expected return and then discuss the empirical shortcomings of the model. This leads to a description of more advanced models and we conclude with a review of survey evidence that considers the approach taken by finance mangers of large listed firms in practice.

2 hours to complete

7 videos (Total 49 min), 1 reading, 2 quizzes

7 videos

2.0 Introduction1m2.1 Unsystematic versus Systematic Risk (Getting rid of unrewarded risk)13m2.2 Capital Asset Pricing Model (It’s all about the discount rate)8m2.3 Empirical Evidence of the Capital Asset Pricing Model (Testing the untestable...)10m2.4 Multi-factor Models and Evidence from the Field (Risk factors – the more the merrier!)9mMid Course Check-in2mA View from Industry with BNY Mellon1m

1 reading

Week 2 Outline10m

2 practice exercises

Week 2 Practice Quiz - This quiz does not contribute to your final grade30mWeek 2 Graded Quiz - This quiz contributes 10% towards your final grade40m

Week3

Week 3

2 hours to complete

Using financial statement analysis to measure cost of capital

2 hours to complete

5 videos (Total 41 min), 1 reading, 2 quizzes

5 videos

3.0 Using Financial Information to Estimate Cost of Capital (Introduction)1m3.1 Foundations of the WACC (Finance is so WACC!)11m3.2 WACC and Debt (WACC-Owe!)11m3.3 WACC and Equity (Share the WACC-iness)6m3.4 Issues with WACC (To WACC or not to WACC..?)9m

1 reading

Week 3 Outline10m

2 practice exercises

Week 3 Practice Quiz - This quiz does not contribute to your final grade30mWeek 3 Graded Quiz - This quiz contributes 10% towards your final grade40m

Week4

Week 4

9 hours to complete

Addressing financial reality with real options analysis

This week we describe how standard NPV analysis might lead to incorrect decisions when we fail to account for the impact of (or upon) firm flexibility. We then describe the three most common types of real options that firms face in practice and then explain how decision trees might be used to arrive at an approximation of the value of the real option that is embedded within a project. We conclude by considering empirical evidence on the take-up of real options analysis and discuss the situations in which real options analysis might most be needed.

9 hours to complete

5 videos (Total 39 min), 4 readings, 4 quizzes

5 videos

4.0 Introduction (One with all the options...)2m4.1 The Problem with NPV (It always works… except when it doesn’t…)6m4.2 Examples of Real Options in Practice (Is that an option in your project?)11m4.3 Approximation of Real Option Values Using Decision Trees (Options do grow on trees!)9m4.4 Empirical evidence and final points (Does anyone exercise their option to use real options?)8m

4 readings

Week 4 Outline10mAcademic Integrity10mWhere to From Here? The Next Step.10mEnd of Course Survey10m

3 practice exercises

Week 4 practice quiz - This quiz does not contribute to your final grade30mWeek 4 graded quiz - This quiz contributes 10% towards your final grade30mCourse Final Exam - This quiz contributes 40% towards your final grade30m

Reviews

4.7

37 reviews

5 stars
76.81%
4 stars
18.68%
3 stars
3.46%
2 stars
0.34%
1 star
0.69%

TOP REVIEWS FROM ALTERNATIVE APPROACHES TO VALUATION AND INVESTMENT

by SVNov 29, 2018

The content in this course is more interesting than that of the previous three. This was my favourite course in the specialization.

by GGFeb 5, 2016

The pinnacle of all of the course. Overall, the structure is very well established from course 1-4 in the specialization.

by AKOct 7, 2017

A truly enjoyable course from start to finish! An excellent accompaniment to any aspiring portfolio manager

by NKMar 7, 2020

Very good for refreshing basic investment theory & some exercises with real numbers. Nice literature is available

View all reviews

About the Essentials of Corporate Finance Specialization

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

More questions? Visit the Learner Help Center.

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Alternative Approaches to Valuation and Investment

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