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Regular version of the site
Bachelor 2017/2018

Corporate Finance in International Companies

Type: Compulsory course (World Economy)
Area of studies: Economics
When: 2 year, 1 module
Mode of studies: offline
Language: English
ECTS credits: 3

Course Syllabus

Abstract

The aim of the course "International Corporate Finance" is to help students to develop an understanding of key financial decisions faced by companies by putting them into an international context. Students will be able to analyze advantages and disadvantages of the major forms of payment in international trade, identify the primary types of foreign-exchange risk faced by international business, describe the techniques used by firms to manage their working capital, evaluate the various capital budgeting techniques used for international investments, understand the primary sources of investment capital available to international companies. The course provides students with skills and knowledge to analyze different types of companies’ financial decisions making under risks of conducting business internationally – investment decisions, financing decisions and dividend decisions.
Learning Objectives

Learning Objectives

  • Providing students with information on the financial aspects of the activities of modern international corporations, the principles and mechanisms of managing corporate financial flows, both from the point of view of operational activities and from the standpoint of attracting and further investing capital.
Expected Learning Outcomes

Expected Learning Outcomes

  • Formulates the principles of a financial approach to company analysis
  • Compares investment projects according to the criteria of NPV, IRR, payback period, profitability index
  • Formulates the main factors of the value of the company
  • Analyzes financial statements
Course Contents

Course Contents

  • The types of corporations. International Finance Market. Stock Exchange.
  • Balance. Profit and loss. Cash flow. Explanatory note. What is not visible in the balance sheet. Cases of misrepresentation and falsification of reporting in international practice, the difference between the laws of the Russian Federation and other countries
  • Financial decisions. Decision evaluation, interest rates and terms, Present Value, NPV, IRR
  • Interest rate. Effective interest rate. Discounted rates. Risks and rates. Bonds. Dynamics of interest rates on bonds. Corporate bonds.
  • Assessment of projects and firms. Application of the NPV rule, comparison with alternative methods. Application of the IRR rule. Payback rule and its application. The choice between projects.
  • Fundamentals of Capital Budgeting
  • Capital markets and risk assessment. Optimal portfolio structure. Volatility.
  • Cost of capital. Investor Behavior.
  • Capital structure in the ideal market. Debt and taxation.
  • Options.
  • Long term financing. IPO. Debt financing.
  • Short term financing
  • Mergers and acquisitions.
  • Risks
  • International aspects of corporate finance.
Assessment Elements

Assessment Elements

  • non-blocking Tests
  • non-blocking Exam
Interim Assessment

Interim Assessment

  • Interim assessment (1 module)
    0.5 * Exam + 0.5 * Tests
Bibliography

Bibliography

Recommended Core Bibliography

  • Berk, J. B., & DeMarzo, P. M. (2014). Corporate Finance: The Core, Global Edition (Vol. Third edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1417990

Recommended Additional Bibliography

  • Corporate Finance : Theory and Practice