Кто читает:: Банковский институт

Статус:: Курс обязательный

Когда читается:: 1-й курс, 3 модуль

Abstract

The course develops theoretical framework for understanding and analyzing major financial problems of modern firm in the market environment. The course covers basic models of corporate capital valuation, including pricing models for primary financial assets, real assets valuation and investment projects analysis, capital structure. The course is focused on developing skills in analyzing corporate behavior in capital markets and the relationship of agent and principal in raising funds, allocating capital, distributing returns. It provides necessary knowledge in evaluating different management decisions and their influence on corporate performance and value.

Learning Objectives

The main objective of the course is to provide the conceptual background for corporate financial analysis from the point of corporate value creation. The course aims to develop an understanding of the theoretical foundations and practical aspects of the decisions made by the financial managers of a corporation.

Expected Learning Outcomes

Assess the value of a firm's stock based on fundamental information
Assess the sensitivity of project value to changes in parameters
Analyze the trade-off between current earnings and future growth prospects
Understand and apply the approaches to the management of current assets and liabilities, including short-term bank financing, and the receivables aging schedule.
Evaluate a firm's short-term investment policies and short-term funding strategy. Understand why the management of inventory, receivables, and payables is important to a firm's overall profitability and value
Describe the sources of value creation in mergers and acquisitions. Assess the gains or losses to both acquiring and target firm in a merger
Define the role and responsibilities of a firm's financial manager
Understand the specific issues that are covered under the heading of "corporate governance" and which practices are considered good. You should know the characteristics of an independent and effective board of directors. Much of the rest of the material has to do with shareholder interests and whether a firm's actions and procedures promote the interests of shareholders
Know how to calculate all of the measures used to evaluate capital projects and the decision rules associated with them. Evaluate and rank alternative investment projects
Understand weighted average cost of capital and be able to calculate the costs of common equity, preferred stock, and the after-tax cost of debt.
Define and calculate various measures of leverage and the firm characteristics that affect the levels of operating and financial leverage. Calculate the breakeven quantity of sales is that quantity of sales for which total revenue just covers total costs
Estimate a firm's cost of capital in relation to risk and leverage
Explain the factors that affect a firm's choice of capital structure.
Explain the factors that affect a firm's choice of payout policy. Know the terminology and mechanics of dividend payments. Calculate the EPS and book value of a firm after a share repurchase, given the relevant information about the firm and the source of the funds

Course Contents

Fundamentals of Corporate Finance
Corporate Governance and other ESG Considerations in Investments Analysis
Capital Budgeting
Cost of Capital. Capital Structure
Measures of Leverage
Payout Policy
Mergers and Acquisitions
Final Project and Test

Assessment Elements

Attendance and participation in class discussions
Home assignments & tasks
a) The core criteria for marking the home assignments include the clarity and coherence of arguments, the accuracy and depth of analysis, and the application of relevant concepts and frameworks. Calculations must be correct, and the task should be completed in full to demonstrate thorough understanding and attention to detail. Creativity and critical thinking are highly valued, especially in addressing complex issues. When using AI tools, students must ensure proper citation of any AI-generated content and demonstrate their understanding by integrating AI outputs with their own insights. Plagiarism or over-reliance on AI without proper attribution will negatively impact the assignment’s evaluation.
Class assignments & quizzes
b) The core criteria for marking the class assignments and quizzes include accuracy and completeness in responses, clarity and coherence of explanations, and correct application of concepts and frameworks. All calculations must be accurate, and each task or question should be fully addressed to demonstrate understanding. For quizzes, timely and correct responses are especially important. Creativity and critical thinking are encouraged, particularly in problem-solving and analysis. When utilizing AI tools, students must properly cite any AI-generated content and ensure that their work reflects their own understanding. Plagiarism or over-reliance on AI without proper attribution will negatively impact the evaluation.
Final exam
c) The assessment criteria for the Final Exam, which includes multiple-choice questions, theoretical questions, and quantitative problems, focus on accuracy, comprehension, and application of concepts. Multiple-choice questions will be evaluated based on correct selection and understanding of key ideas. Theoretical questions require clear, well-structured, and insightful explanations that demonstrate a deep understanding of the subject matter. Quantitative problems will be assessed on the correctness of calculations, proper methodology, and the ability to apply relevant formulas and concepts. Overall, responses should be coherent, concise, and demonstrate critical thinking.

Interim Assessment

2026/2027 3rd module
0.15 * Home assignments & tasks + 0.1 * Attendance and participation in class discussions + 0.6 * Final exam + 0.15 * Class assignments & quizzes

Bibliography

Recommended Core Bibliography

Berk, J. B., & DeMarzo, P. M. (2017). Corporate Finance: The Core, Global Edition: Vol. Fourth edition. Pearson.

Recommended Additional Bibliography

Aswath Damodaran. (2016). Damodaran on Valuation : Security Analysis for Investment and Corporate Finance. Wiley.

Authors

Dimova Elena Anatolevna
KUZIUKOVA IULIIA IGOREVNA
Elizarova Irina Nikolaevna

Магистерская программа «Финансы»

Corporate Issuers

Course Syllabus