Bachelor
2021/2022
Assets Evaluation and Investment Analyses
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
Department of Finance
When:
4 year, 2 module
Mode of studies:
distance learning
Open to:
students of all HSE University campuses
Instructors:
Varvara Nazarova
Language:
English
ECTS credits:
5
Contact hours:
42
Course Syllabus
Abstract
The course aims at understanding of basics of investment process. The students will learn - the principles of investment analysis - methods of calculation of different investment indices - models of formation of portfolio of investments - principles of selection of sources of investments.
Learning Objectives
- To provide students with theoretical knowledge in the field of investment, investment activity at the level of the main groups of investors and the investment mechanism in various forms of its implementation as a basis for the subsequent study of specialization disciplines.
- In course how industries and companies can be analyzed in a competitive framework will be explained. Further, how corporations can be valued using models based upon projections of earnings and cash flows will be explained. We look “dividend discount models” as well as “free cash flow” models, where future cash flows and enterprise value are modeled on more explicit assumptions about firms’ “value drivers”. We also describe and calculate alternative measures of residual earnings and discuss the use of “residual income” models, including the widely used EVA™ model. Finally, how various valuation techniques can be put to work in merger, acquisition, restructuring or divesture situations will be showed. Topics include valuation techniques and their application, capital markets and cost of capital; and project appraisal methods and their application.
Expected Learning Outcomes
- Be able to build a model of financial management, based on a system covering all aspects of the activities of a modern company with the release levels and planning horizon (e.g. using KPI)
- Gain knowledge and skills in order to make management decisions in this area
- Know and be able to use special terminology of financial strategic management
- To know the essence of the economic, organizational and social changes that occur in domestic companies with a shift of emphasis from production to marketing principles of planning and management
- Be able to build a model of financial management, based on a system covering all aspects of the activities of a modern company with the release levels and planning horizon (e.g. using KPI)
- Gain knowledge and skills in order to make management decisions in this area
- Explore the possibilities of software for creating and using the valuation;
- Know and be able to use special terminology of financial strategic management.
- Know the patterns of functioning of a modern economy at the macro and micro levels
- To know the essence of the economic, organizational and social changes that occur in domestic companies with a shift of emphasis from production to marketing principles of planning and management
Course Contents
- Topic 1. Corporation and the investment process. Corporate investment management system
- Topic 2. Designing cash flows of an investment project
- Topic 3. Analysis of the effectiveness of capital investments
- Topic 4. Investment projects and methods of financing them
- Topic 5. Evaluation of projects with unequal deadlines.
- Topic 6. The method of real options when evaluating investment projects
- Topics 7. Evaluation of the project in conditions of uncertainty and risk
- Topic 8. Framework for Corporate Valuation
- Topic 9. Value Creation Company
- Topic 10. Practice in companies valuation
Assessment Elements
- current activities (quiz)Quiz is carried out at the seminar. The text of the work and the rules for performing the work are sent to the corporate mail of each student. The period for performing the work is determined. The student has the opportunity to complete the test in the sent file or print the document, write the solution and send the scanned work. The time for performing the work is assigned before starting work. Work solutions must be laid out in a special folder created in the LMS, no later than the time suggested at the beginning of the test
- class work
- homework
- the final written examinationExam is carried out at the seminar. The text of the work and the rules for performing the work are sent to the corporate mail of each student. The period for performing the exam is determined. The student has the opportunity to complete the test in the sent file or print the document, write the solution and send the scanned work. The time for performing the work is assigned before starting work. Work solutions must be laid out in a special folder created in the LMS, no later than the time suggested at the beginning of the test.
Interim Assessment
- 2021/2022 2nd module0.1 * class work + 0.2 * current activities (quiz) + 0.2 * homework + 0.5 * the final written examination
Bibliography
Recommended Core Bibliography
- Corporate finance: theory and practice, Damodaran, A., 2001
- Investment valuation : tools and techniques for determining the value of any asset, Damodaran, A., 2012
- Valuation: measuring and managing the value of companies, Copeland, T., 2000
- Инвестиционные рычаги максимизации стоимости компании. Практика российских предприятий, Теплова, Т.В., 2007
Recommended Additional Bibliography
- Инвестиции : учебник для бакалавров, Теплова Т.В., 2012
- Корпоративные финансы: перспективы и реальность. Управление стоимостью компании: Сборник статей, , 2006