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Regular version of the site
Master 2022/2023

Corporate Finance

Category 'Best Course for Career Development'
Type: Compulsory course (Finance)
Area of studies: Finance and Credit
Delivered by: Department of Finance
When: 1 year, 2, 3 module
Mode of studies: offline
Open to: students of one campus
Instructors: Varvara Nazarova
Master’s programme: Finance
Language: English
ECTS credits: 6
Contact hours: 80

Course Syllabus

Abstract

The key aim of the course is to provide students with knowledge and skills in taking corporate financial and investment decisions, develop analytic instruments to assess the effectiveness and efficiency of such decisions, elaborate models of corporate finance and financial strategy.
Learning Objectives

Learning Objectives

  • To make clear the principles of financial management.
  • To provide tools for analysis of a company’s business environment and its impact at investments and financial decisions.
  • To create the knowledge and understanding of key corporate finance concepts.
  • To develop the skills in investment and financial decisions assessment and toolkit for their evaluation.
  • To develop the understanding of the impact of financial decisions at corporate efficiency.
Expected Learning Outcomes

Expected Learning Outcomes

  • Students are able to analyze principles of decision-making, to determine the key interests of major stakeholders, to analyse the structure of assets, liabilities and cash flows of a company, to evaluate the efficiency of financial decisions.
  • Students are able to apply CAPM to estimate cost of equity in different frameworks; to calculate the value of stock using DDM; to calculate the cost of debt; to evaluate different types of bonds; to assess the corporate debt; to calculate value of convertible bond and common shares.
  • Students are able to calculate WACC for a corporation and an investment project.
  • Students are able to define the FCFE and amount of dividends, to be paid, to optimize the payout policy.
  • Students are able to define the sustainable growth rate of a corporation, to calculate the corporate need for external funding.
  • Students are able to develop capital budget.
  • Students are able to implement principles of value-based management in financial decisions.
  • Students have skills to match financial decisions and a company’s strategy, to analyse investments, to set financial objectives, to apply tools of working capital management; to be prepared for taking ethical and reasonable, data-driven financial and investment decisions, timely and in a persuasive manner.
  • Students know basic concepts of corporate finance, key financial and non-financial stakeholders, the role of financial and non-financial institutions in a company’s funding, models of asset pricing, capital structure decisions and payout decisions.
  • Students understand capital structure theories, make decisions on capital structure.
  • Students understand how to consider capital budgeting constraints at project analysis.
  • Students understand pinciples of portfolio approach, derivation of CAPM, its constraints; alternative models principles, principles of stock valuation, principles of bonds valuation.
  • Students understand principles of cash flows analysis, financial modeling; the concept of corporate sustainable growth.
  • Students understand principles of corporate goals and strategy forming, corporate financial policy, the role of financial manager at capital markets, principles of corporate investment and financial decision-taking.
  • Students understand principles of dividend decisions, the relationship between payouts and companies’ value.
  • Students understand the concept of WACC and its role as a barrier cost of capital.
  • Students understand to consider strategic intents in financial decisions.
Course Contents

Course Contents

  • Goals and Government of the Firm
  • Financial analysis and financial modeling. Growth management
  • Investment Decision Taking
  • Risk and return
  • Calculation of cost of capital
  • Capital Structure Decisions
  • Payout policy
  • Value-based management and strategic financial decisions
  • Strategic financial decisions and their reflection in companies’ efficiency (business game)
Assessment Elements

Assessment Elements

  • non-blocking Midterm Test
    The mark 9-10: Has a clear argument, which addresses the topic and responds effectively to all aspects of the task. Fully satisfies all the requirements of the task; the student gave more arguments and theories than were discussed at the lecture
  • non-blocking Midterm Test
    Has a clear argument, which addresses the topic and responds effectively to all aspects of the task. Fully satisfies all the requirements of the task;
  • non-blocking Home Assignments
  • non-blocking In-class Activities
    Mark 9-10: A critical analysis which demonstrates original thinking and shows strong evidence of preparatory research and broad background knowledge.
  • non-blocking Final Exam
    A critical analysis which demonstrates original thinking and shows strong evidence of preparatory research and broad background knowledge
Interim Assessment

Interim Assessment

  • 2022/2023 3rd module
    0.2 * Home Assignments + 0.1 * Midterm Test + 0.1 * In-class Activities + 0.5 * Final Exam + 0.1 * Midterm Test
Bibliography

Bibliography

Recommended Core Bibliography

  • Vernimmen, P. (2017). Corporate Finance : Theory and Practice (Vol. Fifth edition). Hoboken: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1606902

Recommended Additional Bibliography

  • Jensen, M. C. (2010). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Journal of Applied Corporate Finance, 22(1), 32–42. https://doi.org/10.1111/j.1745-6622.2010.00259.x