Corporate Finance: International Practices
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type: Elective course (International Bachelor's Programme in World Politics)
Area of studies: International Relations
Delivered by: Faculty of World Economy and International Affairs
When: 4 year, 1, 2 module
Mode of studies: distance learning
Open to: students of one campus
Instructors: Фокин Антон Валерьевич, Ella Khromova (Fokina), Darya Litvinova
ECTS credits: 5
Contact hours: 32
The Corporate finance course is an intermediary two-module course for four-year undergraduate students. It is focusing on corporate applications in the international environment. The course develops theoretical and practical frame works for understanding and analyzing major financial problems of modern firm in the market environment. The course is taught in English. Russian is used as supplementary language to explain basic concepts and introduce some Russian terminology. The first part of the course is devoted to principles of accounting. By the end of this part of a course, students are expected to be able to apply a set of accounting concepts to read annual financial report of a corporation and financial ratios to assess its financial position. The second part deals with principles of company valuation and covers the essentials of capital structure and methods of company valuation. It is focused on estimating and forecasting cash flow of a firm in order to calculate its market value.
- 1. To prepare and analyze companies’ financial statements and financial ratios for decision-making purposes and perform financial planning, applying various models
- 2. To conduct quantitative and qualitative research to find and analyze stock information
- 3. To perform valuation of a company through multiples and discounted cash flows models
- 4. To evaluate the optimal capital structure of a company and analyze its leverage
- 5. To make a justified investment decision applying project analysis and evaluation of multiple investment criteria
Expected Learning Outcomes
- To develop skills in analyzing corporate behavior in capital markets and the relationship of agent, and principal of raising funds, allocating capital and distributing returns.
- To broaden the scope in evaluating different management decisions and their influence on corporate performance and value.
- To develop a strategic understanding of key financial decisions faced by organizations today by putting them into an international context.
- Basic Accounting Equation and Balance Sheet
- Profit and Loss statement
- Cash Flow Statement and the link between 3 statements
- Company Valuation Approaches
- Capital Structure Choice
- DCF Model: Cash Flows
- DCF Model: Discount rate
- DCF Model: Construction
- Home assignments
- Participation during lectures and classesStudents are expected to attend every lecture and class and participate by contributing to the in-class discussions and problem solving. Students may prepare to their in-class problems by reading the materials provided at the end of each lecture.
- Group project
- Final written examFinal written exam is held during an exam week. The exam is obligatory and cannot be covered by the cumulative grade. The exam lasts 120 minutes and contains 8 problems that include some essays and problem- solving tasks similar to home assignments and class problems.
- 2022/2023 2nd module0.15 * Participation during lectures and classes + 0.15 * Home assignments + 0.4 * Group project + 0.3 * Final written exam
Recommended Core Bibliography
- Accounting : understanding and practice, Leiwy, D., 2013
- Financial markets and corporate strategy, Hillier, D., 2012
- Principles of corporate finance, Brealey, R. A., 2008
- Satran, R. (2013). Breaking Into Wall Street. U.S. News Digital Weekly, 5(17), 8.
Recommended Additional Bibliography
- Cost accounting : a managerial emphasis, Horngren, C. T., 2015