Opetussuunnitelmat

Objective

Project Description
Corporate Valuation & Risk Management Project is run as a joint venture between Jamk University of Applied Sciences, Jyväskylä, Finland (Jamk) and Okanagan College, Canada (OC).
The project aims to inculcate core skills in the field of valuation, fundamental financial analysis, ESG, regulatory ecosystem and corporate governance landscape of companies.

The project is highly suitable you as a student who is pursuing their bachelor’s degree in business administration and want to make career in the field of finance. You will be gaining real-life experience and exposure in the capacity of trainee financial research analyst by applying several valuation techniques, writing professional report, and making presentations.

You will be placed in teams of 4-6 persons consisting of both OC and Jamk students that will be working together for the duration of the project.

The project will commence mid-October. The deliverables include a written investment report, a financial model in Excel, and a presentation delivered to the Investment Committee. The Investment Committee will be comprised of OC and Jamk faculty, as well as investment industry professionals.

Learning Outcomes
• You will be able to apply and compare various valuation techniques in the context of common stock of the chosen case company(ies).
• You will be able to ascertain over/under-valuation of common stock by comparing the market, and intrinsic value and identifying possible consequences.
• You will be able to carry out competition, business, financial, non-financial, sensitivity, scenario, industry, and sector analysis.
• You will be able to Identify investment risk factors as well as quantifying them.
• You will be analysing ownership structure of the chosen case company(ies).
• You will be able to reflect dynamics of Ethics, Sustainability and Governance (ESG) in the field of finance and their association with the valuation of common stock on several occasions.

The project is based on the following Jamk IB COMPETENCES:

1. Learning to learn-
You develop critical and analytical mindset that helps you to study and review existing knowledge in the light of relevant learning resources and learning methods; incentivizes you to acquire new knowledge; and develops your intellectual capabilities to seek conclusions and draw inferences in various contexts.
To achieve this competence, you will:
– learn to formulate relevant questions and seek information,
-review relevant theoretical, and empirical literature to comprehend diverse perspectives and evaluate, and interpret arguments and counter-arguments,
-understand new developments in your field of study and make informed decisions based thereon.
- acquire the researcher’s mindset to problematize, explore and understand real-life phenomena especially in the academic track system.

2. Proactive development-
You develop solutions in the light of current as well as anticipated situations and challenges in business by applying knowledge, critical reasoning and analytical skills. You ensure that these solutions are feasible, relevant, creative, user-friendly, and sustainable as well as underline active cooperation amongst different actors.
To achieve this competence, you will:
- apply existing knowledge and utilize relevant research methods including digital technology in development projects,
-interpret new evidence in the light of existing body of knowledge, make comparisons and draw inferences,
- express your intellectual contribution through scientific or professional writings,
-understand utility, creativity, viability, scalability, and sustainability of new solutions.

3. Internationality and multiculturalism-
You work in multicultural and international environments and networks in order to develop knowledge and communication skills as well as develop empathy and appreciation for other cultures. You communicate responsibly and effectively in English through written, verbal, non-verbal and digital formats individually as well as a team member in diverse settings.
To achieve this competence, you will:
-be familiar with the impact of your cultural background on your actions and be able to effectively and productively function in your work community that explicitly recognizes the relevance of multiculturalism,
-demonstrate meaningful intercultural teamwork, including the roles of leadership and conflict resolution, in order to develop creative solutions carrying multicultural underpinnings,
-be able to experience group learning and share best practices in international settings,
- learn to communicate ideas and solutions effectively in the context of various subjects, multiple purposes, and a wide range of audience both individually as well as in a group,
- initiate and engage constructive dialogues among relevant stakeholders to accomplish desired goals for multiple purposes and communicate ideas and solutions to a wide range of audience including both individuals and groups,
-learn to be ‘active listener’ to understand diverse perspectives, and points of view in accurate, unbiased, and critical manner,
-learn various aspects of digital media.

4. Ethics-
You benchmark and demonstrate ethical and responsible conduct according to the well-established principles, norms and best practices laid down by relevant national and international bodies and organisations.
To achieve this competence, you will:
-understand and apply the well-established principles of responsible conduct in research, and problem solving,

-adhere to the principles of equity, equality, and non-discrimination,

-take responsibility for your own actions and their consequences and reflect on them in accordance with the relevant ethical principles, norms, and practices,

- develop realization of diversity and accessibility in your actions.

5. Operating in a workplace-
You promote and reflect upon personal and professional learning in order to enhance your career development.
To achieve this competence, you will:
-interact constructively in the work community and contribute towards its well-being,

-enhance your professional network to remain well-informed about key developments in your chosen field,

-enhance your entrepreneurial skills by taking initiative and leading projects to make a positive impact on your work community.

-utilize the opportunities offered by technology and digitalization in your work community.

6. Sustainable development-
You develop an understanding, vision, and appreciation for sustainability that affect personal, and professions lives, local communities, and global society at large. You study and explore linkages between multiple aspects of sustainability and business.

To achieve this competence, you will:

-understand the concept and principles of sustainable development in the context of business,

-recognize sustainability challenges and their consequences for businesses, local communities, and global society,

-use your accumulated knowledge and skills to create and implement sustainable solutions to solve business problems.

IB competence:
7. Responsible international business management-
You develop your intellectual capabilities to seek conclusions and draw inferences in an international environment to become responsible manager. You develop creative and insightful solutions to solve complex business problems both in the present and the future with explicit emphasis on local and international standards of ethics, responsibility, and sustainability and implications on various stakeholders.
To achieve this competence, you will:
-study developments in your discipline in the international learning milieu and understand various aspects of responsible business management including global business trends and competitive landscape.
-derive and interpret new evidence and compare them with the existing body of knowledge in the global context to draw useful inferences,
- critically assess the implications of actions and decision of the international organisations.
-understand the impact of the of the actions and decisions on the community, in general, and specific stakeholders, in particular.
-understand core aspects of people management in the international business environment.

Content

Learning Contents
• Valuation techniques (Discounted Cash Flow, Dividend Discount Model, Relative Valuation, Monte Carlo Simulation Model etc.)
• Empirical aspects and theoretical underpinnings including Risk-return dynamics, Modern Portfolio Theory, Capital Asset pricing Model (CAPM), Arbitrage Pricing Theorem (APT) Capital Structure, and Capital Budgeting.
• Theory and techniques of Fundamental Analysis.

Qualifications

The project involves tool and techniques of Valuation based on Fundamental Analysis. The students must have the fundamental knowledge of Accounting, Finance and Economics.

Assessment criteria, satisfactory (1)

You will get a grade of Two when you reflect at-least two competences at the ‘excellent’ level and five at the ‘intermediate’ level reflect through all the seven competences through the various project activities including weekly tasks, communication with Jamk and international students, data analysis of the case companies, interpretation and inferences drawn, mid-term project report, final report and presentations at the ‘excellent’ level.
The list of competences is given below:
1. Learning to learn
2. Proactive development
3. Internationality and multiculturalism
4. Ethics
5. Operating in a workplace
6. Sustainable development
7. Responsible international business management

You will get a grade of One when you reflect at-least one competence at the ‘excellent’ level and six at the ‘intermediate’ level reflect through all the seven competences through the various project activities including weekly tasks, communication with Jamk and international students, data analysis of the case companies, interpretation and inferences drawn, mid-term project report, final report and presentations at the ‘excellent’ level.
The list of competences is given below:
1. Learning to learn
2. Proactive development
3. Internationality and multiculturalism
4. Ethics
5. Operating in a workplace
6. Sustainable development
7. Responsible international business management

Any achievement of competences below the above prescribed requirements will lead to a grade of Zero.

Assessment criteria, good (3)

You will get a grade of Four when you reflect at-least four competences at the ‘excellent’ level and three at the ‘intermediate’ level reflect through all the seven competences through the various project activities including weekly tasks, communication with Jamk and international students, data analysis of the case companies, interpretation and inferences drawn, mid-term project report, final report and presentations at the ‘excellent’ level.
The list of competences is given below:
1. Learning to learn
2. Proactive development
3. Internationality and multiculturalism
4. Ethics
5. Operating in a workplace
6. Sustainable development
7. Responsible international business management

You will get a grade of Three when you reflect at-least three competences at the ‘excellent’ level and four at the ‘intermediate’ level reflect through all the seven competences through the various project activities including weekly tasks, communication with Jamk and international students, data analysis of the case companies, interpretation and inferences drawn, mid-term project report, final report and presentations at the ‘excellent’ level.
The list of competences is given below:
1. Learning to learn
2. Proactive development
3. Internationality and multiculturalism
4. Ethics
5. Operating in a workplace
6. Sustainable development
7. Responsible international business management

Assessment criteria, excellent (5)

You will get a grade of Five when you reflect at-least five competences at the ‘excellent’ level and two at the ‘intermediate’ level reflect through all the seven competences through the various project activities including weekly tasks, communication with Jamk and international students, data analysis of the case companies, interpretation and inferences drawn, mid-term project report, final report and presentations at the ‘excellent’ level.
The list of competences is given below:
1. Learning to learn
2. Proactive development
3. Internationality and multiculturalism
4. Ethics
5. Operating in a workplace
6. Sustainable development
7. Responsible international business management

Materials

1. Lecture slides, spreadsheet, lecture videos and other study material (Finance and Corporate Governance Academic Track).
2. Recommended Books:
- Richard A. Brealey, Stewart C. Myers and Franklin Allen, Principles of Corporate Finance, 13th Edition (2019). The McGraw-Hill.
- Stephen Ross and Randolph Westerfield and Jeffrey Jaffe and Bradford Jordan, Corporate Finance, 12th Edition (2018). The McGraw-Hill.
- Jonathan Berk and Peter DeMarzo, Corporate Finance, 5th Edition (2020). Pearson.
- Reilly, Brown, Leeds, Investment Analysis and Portfolio Management, 11th Edition, Nelson Education (2019)
- Koller, Goedhart, Wessels, McKinsey and Company, Valuation, 7th edition, Measuring and Managing the Value of Companies, Wiley.

Further information

The project involves tool and techniques of Valuation based on Fundamental Analysis. The students must have the fundamental knowledge of Accounting, Finance and Economics.