FINA5601 Valuation and Risk Analysis for Resource Companies

Credit
6 points
Offering
(see Timetable)

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Non-standard teaching periodUWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Content
This unit builds upon the work covered in FINA5530 Managerial Finance and extends this material to the valuation of quite complex enterprises. After a review of the traditional net present value material students move onto adjusted present value and certainty equivalent approaches. The unit also provides an introduction to decision trees and real option valuation approaches. Visitor presentations, group projects and individual problem solving are applied to highlight the relevance of the work covered in the unit and to encourage deeper learning of the material.
Outcomes
Students are able to (1) evaluate resource project investment proposals and understand the implications and limitations of the main evaluation methods; (2) value a resource project towards determining whether the project should go ahead or not; (3) understand the elements of risk management that are relevant to resource projects; and (4) further develop oral and written communication skills with the completion of written reports and presentations.
Assessment
Indicative assessments in this unit are as follows: (1) participation; (2) assignment; and (3) examination. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s)
Associate Professor Pietro Guj
Unit rules
Prerequisites:
ACCT5602 Accounting and FINA5530 Managerial Finance or MGMT5524 Strategic Management of Resource Companies; enrolment in the Master of Business Administration (coursework) or the Master of Business Administration (coursework and dissertation); or enrolment in the Graduate Certificate in Minerals and Energy Management; or enrolment in the Master of Engineering in Oil and Gas; or approval from The Business School only, which will be determined with regard to relevant documented professional work experience.
Contact hours
Intensive—lectures/seminars/workshops: 5 sessions (7–8 hours) over 7 weeks
Trimester—lectures/seminars/workshops: up to 3 hours per week
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  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit, one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook one week prior the commencement of study. Reading lists and essential textbooks are subject to change each semester. Information on essential textbooks will also be made available on the Essential Textbooks. This website is updated regularly in the lead up to semester so content may change. It is recommended that students purchase essential textbooks for convenience due to the frequency with which they will be required during the unit. A limited number of textbooks will be made available from the Library in print and will also be made available online wherever possible. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus.