Master 2021/2022

Business Value Management

Type: Compulsory course

Area of studies: Finance and Credit

Delivered by: School of Economics and Finance

Where: Faculty of Economics

When: 2 year, 1, 2 module

Mode of studies: offline

Open to: students of one campus

Instructors: Первушина Ирина Михайловна, Anastasiya A. Bozhya-Volya, Anna Bykova, Петрова Мария Владимировна

Master’s programme: Financial Strategies and Analitics

Language: English

ECTS credits: 8

Contact hours: 72

Course Syllabus

Abstract

The course covers major strategic financial issues related with financial accounting, investments, value measurement, value drivers identification and business strategy development. The first part of the course is aimed at deepening students' knowledge of various approaches to assessing the equity capital value of of both public (public equity) and non-public companies (private equity). Two approaches to fundamental analysis and stock selection (top-down and bottom-up) and 4 approaches to further valuation are considered: Dividend models; Discounted cash flow models; Residual income models; Comparative evaluation. As a result of passing this discipline, students should develop an understanding of the analytical process of assessing securities, as well as skills for assessing equity capital in the context of the availability of various input parameters. The second part employs problem-based learning principles when students work on the case-studies based on the data from one of the Perm region located companies. The issues to be investigated are also provided by CFO of these companies. During their work, students understand companies’ perspectives, evaluate major strategic corporate and investment decisions, and develop an integrated framework for value-based financial management and individual financial decision-making. Blending the theory and practice along with the learning-by-doing principle, allows for deep understanding key finance principles of measuring business success, value creation and companies’ strategies taking into account risk and uncertainty into investment decisions.

Learning Objectives

• The course covers major strategic financial issues related with financial accounting, investments, value creation and business strategy. Such issues are of particular important for company financial officers, managers and analysts involved or interacting with finance-related activities and decision-making process.

Expected Learning Outcomes

• A solid foundation in developing an integrated value-based framework for strategic decision-making.
• Different types of capital structure and their implications for cost of capital and associated decisions
• Formulating of a company strategy taking account of a range of stakeholders and their interests and differing investment and financing options
• Identifying and justifying the range of investment appraisal techniques, select as appropriate and apply within the investment appraisal process, and make the recommendation about the investment strategy
• Mechanisms of making investment decisions that create value for shareholders and firm valuation techniques and key value drivers identification, including intellectual resources
• The nature and significance of financial risk and uncertainty, and apply techniques to take account of these financial risks
• Using financial and accounting statements to measure the financial health of a company, forecasting and managing a company’s short- and long-term liquidity needs, measuring the contribution of a new project or acquisition to shareholder value, and critically evaluate and analyze them in order to evaluate the business strategy.

Course Contents

• Investment Analysis
• Introduction into the strategic financial management (SFM):
• Value based management (VBM)

Assessment Elements

• Seminar (parts 2-3)
• Control Work
• Project 1 (Self-study work)
• Project 2
• Seminars (part 1)
• Exam

Interim Assessment

• 2021/2022 1st module
  0.4 * Seminars (part 1) + 0.6 * Control Work
• 2021/2022 2nd module
  0.25 * Project 2 + 0.4 * Project 1 (Self-study work) + 0.35 * 2021/2022 1st module

Bibliography

Recommended Core Bibliography

• Paul Asquith, & Lawrence A. Weiss. (2019). Lessons in Corporate Finance : A Case Studies Approach to Financial Tools, Financial Policies, and Valuation: Vol. Second edition. Wiley.
• Инвестиционная оценка. Инструменты и методы оценки любых активов : пер. с англ., Дамодаран А., 2011

Recommended Additional Bibliography

• McKinsey & Company Inc, Tim Koller, Marc Goedhart, & David Wessels. (2020). Valuation : Measuring and Managing the Value of Companies, University Edition. Wiley.