Business Finance

2021/2022

Учебный год

ENG

Обучение ведется на английском языке

4

Кредиты

Кто читает:

Факультет мировой экономики и мировой политики

Статус:

Курс обязательный

Когда читается:

2-й курс, 1-3 модуль

Преподаватель

Студенникова Светлана Эдуардовна

Course Syllabus

Abstract

This course is intended to provide a market-oriented framework for analyzing the major types of financial decisions made by corporations. The primary objective is to provide a framework, concepts and analytical tools to identify and solve financial management problems. It also introduces basic financial analysis techniques to transform concepts into practice, with emphasis on topics in the corporate finance area. It serves as the basis for all other courses in the area of corporate finance and provides basic tools that every business student will need to be successful in his or her chosen career.

Learning Objectives

• Understand important terminology and framework, concepts and analytical tools to identify and solve financial management problems
• Be able to use basic financial analysis techniques to transform concepts into practice

Expected Learning Outcomes

• - Be able to compute payback and discounted payback and understand their shortcomings - Understand accounting rates of return and their shortcomings - Be able to compute internal rates of return (standard and modified) and understand their strengths and weaknesses - Be able to compute the net present value and understand why it is the best decision criterion - Be able to compute the profitability index and understand its relation to net present value
• - Be able to compute the future value of an investment made today - Be able to compute the present value of cash to be received at some future date - Be able to compute the return on an investment (ROI) - Be able to compute the number of periods that equates a present value and a future value given an interest rate
• - Be able to compute the future value of multiple cash flows - Be able to compute the present value of multiple cash flows - Be able to compute loan payments - Be able to find the interest rate on a loan - Understand how interest rates are quoted - Understand how loans are amortized or paid off
• - Know how to calculate expected returns - Understand the impact of diversification - Understand the systematic risk principle - Understand the security market line - Understand the risk-return trade-off
• - Know how to calculate the return on an investment - Understand the historical returns on various types of investments - Understand the historical risks on various types of investments - Understand the implications of market efficiency
• - Know how to determine relevant planning cycle to run the business - Understand the importance of S&OP process & IBP for the company - Understand different types of financial planning activities
• - Know the basic types of financial management decisions and the role of the financial manager - Know the financial implications of the different forms of business organization - Know the goal of financial management - Understand the conflicts of interest that can arise between owners and managers - Understand the various types of financial markets
• - Know three key financial statements and their main purposes - Know the difference between book value and market value - Know the difference between accounting income and cash flow - Know how to determine a firm’s cash flow from its financial statements
• - Understand forecasting risk and sources of value - Understand and be able to conduct scenario and sensitivity analysis - Understand the various forms of break-even analysis - Understand operating leverage - Understand capital rationing and its effects
• - Understand how stock prices depend on future dividends and dividend growth - Understand how corporate directors are elected - Understand how stock markets work - Understand how stock prices are quoted
• - Understand how to determine the relevant cash flows for various types of proposed investments - Understand the various methods for computing operating cash flow - Understand how to set a bid price for a project - Understand how to evaluate the equivalent annual cost of a project
• - Understand sources and uses of cash and the Statement of cash flows - Know how to standardize financial statements for comparison purposes - Know how to compute and interpret important financial ratios - Understand the problems and pitfalls in financial statement analysis
• - Understand the financial planning process and how decisions are interrelated - Be able to compute external financing needed and identify the determinants of a firm’s growth - Understand the four major decision areas involved in long- term financial planning - Understand how capital structure policy and dividend policy affect a firm’s ability to grow

Course Contents

• Introduction to Corporate Finance
• Financial Statements
• Working With Financial Statements
• Long-Term Financial Planning and Growth
• Midterm Exam I
• Introduction to Valuation: The Time Value of Money
• Discounted Cash Flow Valuation
• Stock Valuation
• Midterm Exam II for Part III & Part IV
• Net Present Value and Other Investment Criteria
• Making Capital Investment Decisions
• Project Analysis and Evaluation
• Midterm Exam III
• Some Lessons from Capital Market History
• Return, Risk, and the Security Market Line
• Planning cycles, Integrated business planning, S&OP
• Final Exam

Assessment Elements

• Assignments
• Attendance
• Midterm exam I
• Midterm exam II
• Midterm exam III
• Final exam

Interim Assessment

• 2021/2022 3rd module
  0.1 * Midterm exam III + 0.2 * Assignments + 0.1 * Midterm exam I + 0.4 * Final exam + 0.1 * Midterm exam II + 0.1 * Attendance

Bibliography

Recommended Core Bibliography

• Ross, S. A., Westerfield, R., & Jordan, B. D. (2012). Fundamentals of corporate finance. Slovenia, Europe: McGraw-Hill. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.D5D5B17E

Recommended Additional Bibliography

• Berk, J., DeMarzo, P., & Harford, J. V. T. (2014). Fundamentals of Corporate Finance, Global Edition (Vol. Third edition). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419502