Бакалавриат 2020/2021

Финансы и бизнес

Лучший по критерию «Новизна полученных знаний»

Статус: Курс обязательный (Программа двух дипломов НИУ ВШЭ и Университета Кёнхи «Экономика и политика в Азии»)

Направление: 41.03.01. Зарубежное регионоведение

Кто читает: Факультет мировой экономики и мировой политики

Где читается: Факультет мировой экономики и мировой политики

Когда читается: 2-й курс, 1-3 модуль

Формат изучения: без онлайн-курса

Преподаватели: Студенникова Светлана Эдуардовна

Язык: английский

Кредиты: 4

Контактные часы: 52

Course Syllabus

Abstract

This course is intended to provide a market-oriented framework for analyzing the major types of financial decisions made by corporations. The primary objective is to provide a framework, concepts and analytical tools to identify and solve financial management problems. It also introduces basic financial analysis techniques to transform concepts into practice, with emphasis on topics in the corporate finance area. It serves as the basis for all other courses in the area of corporate finance and provides basic tools that every business student will need to be successful in his or her chosen career.

Learning Objectives

• Understand important terminology and framework, concepts and analytical tools to identify and solve financial management problems
• Be able to use basic financial analysis techniques to transform concepts into practice

Expected Learning Outcomes

• - Know the basic types of financial management decisions and the role of the financial manager - Know the financial implications of the different forms of business organization - Know the goal of financial management - Understand the conflicts of interest that can arise between owners and managers - Understand the various types of financial markets
• - Know three key financial statements and their main purposes - Know the difference between book value and market value - Know the difference between accounting income and cash flow - Know how to determine a firm’s cash flow from its financial statements
• - Understand sources and uses of cash and the Statement of cash flows - Know how to standardize financial statements for comparison purposes - Know how to compute and interpret important financial ratios - Understand the problems and pitfalls in financial statement analysis
• - Understand the financial planning process and how decisions are interrelated - Be able to compute external financing needed and identify the determinants of a firm’s growth - Understand the four major decision areas involved in long- term financial planning - Understand how capital structure policy and dividend policy affect a firm’s ability to grow
• - Be able to compute the future value of an investment made today - Be able to compute the present value of cash to be received at some future date - Be able to compute the return on an investment (ROI) - Be able to compute the number of periods that equates a present value and a future value given an interest rate
• - Be able to compute the future value of multiple cash flows - Be able to compute the present value of multiple cash flows - Be able to compute loan payments - Be able to find the interest rate on a loan - Understand how interest rates are quoted - Understand how loans are amortized or paid off
• - Understand how stock prices depend on future dividends and dividend growth - Understand how corporate directors are elected - Understand how stock markets work - Understand how stock prices are quoted
• - Be able to compute payback and discounted payback and understand their shortcomings - Understand accounting rates of return and their shortcomings - Be able to compute internal rates of return (standard and modified) and understand their strengths and weaknesses - Be able to compute the net present value and understand why it is the best decision criterion - Be able to compute the profitability index and understand its relation to net present value
• - Understand how to determine the relevant cash flows for various types of proposed investments - Understand the various methods for computing operating cash flow - Understand how to set a bid price for a project - Understand how to evaluate the equivalent annual cost of a project
• - Understand forecasting risk and sources of value - Understand and be able to conduct scenario and sensitivity analysis - Understand the various forms of break-even analysis - Understand operating leverage - Understand capital rationing and its effects
• - Know how to calculate the return on an investment - Understand the historical returns on various types of investments - Understand the historical risks on various types of investments - Understand the implications of market efficiency
• - Know how to calculate expected returns - Understand the impact of diversification - Understand the systematic risk principle - Understand the security market line - Understand the risk-return trade-off
• - Know how to determine relevant planning cycle to run the business - Understand the importance of S&OP process & IBP for the company - Understand different types of financial planning activities

Course Contents

• Introduction to Corporate Finance
  Corporate Finance and The Financial Manager Forms of Business Organization The Goal of Financial Management The Agency Problem and Control of the Corporation Financial Markets and the Corporation Fundamentals of Corporate Finance, by Brealey, Myers, Marcus  Articles & Videos from various sources All necessary materials (lecture PPT files, a list of Textbook Chapters & problems, sample multiple choice questions, related articles, and related videos) will be distributed during the course.
• Financial Statements
  The Balance Sheet The Income Statement Taxes Cash Flow
• Working With Financial Statements
  Cash Flow and Financial Statements: A Closer Look Standardized Financial Statements Ratio Analysis The Du Pont Identity Using Financial Statement Information
• Long-Term Financial Planning and Growth
  What is Financial Planning? Financial Planning Models: A First Look The Percentage of Sales Approach External Financing and Growth Some Caveats Regarding Financial Planning Models
• Midterm Exam I
  Midterm exam I: Business case solution and problem solving Detailed discussion of Midterm exam I results and problem solving
• Introduction to Valuation: The Time Value of Money
  Future Value and Compounding Present Value and Discounting More about Present and Future Values
• Discounted Cash Flow Valuation
  Future and Present Values of Multiple Cash Flows Valuing Level Cash Flows: Annuities and Perpetuities Comparing Rates: The Effect of Compounding Loan Types and Loan Amortization
• Stock Valuation
  Common Stock Valuation Some Features of Common and Preferred Stocks The Stock Markets
• Midterm Exam II for Part III & Part IV
  Midterm exam II: Business case solution and problem solving Detailed discussion of Midterm exam II results and problem solving
• Net Present Value and Other Investment Criteria
  Net Present Value The Payback Rule The Discounted Payback The Average Accounting Return The Internal Rate of Return The Profitability Index The Practice of Capital Budgeting
• Making Capital Investment Decisions
  Project Cash Flows: A First Look Incremental Cash Flows Pro Forma Financial Statements and Project Cash Flows More on Project Cash Flow Alternative Definitions of Operating Cash Flow
• Midterm Exam III
  Midterm exam III: Business case solution and problem solving Detailed discussion of Midterm exam III results and problem solving
• Project Analysis and Evaluation
  Evaluating NPV Estimates Scenario and Other What-If Analyses Break-Even Analysis Operating Cash Flow, Sales, Volume, and Break-Even Operating Leverage Capital Rationing
• Some Lessons from Capital Market History
  Returns The Historical Record Average Returns: The First Lesson The Variability of Returns: The Second Lesson More about Average Returns Capital Market Efficiency
• Return, Risk, and the Security Market Line
  Expected Returns and Variances Portfolios Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic Diversification and Portfolio Risk Systematic Risk and Beta The Security Market Line The SML and the Cost of Capital: A Preview
• Planning cycles, Integrated business planning, S&OP
  The importance of S&OP process & IBP for the company. Different types of financial planning activities
• Final Exam
  Preparation for Final Exam – Summary of the course Final Exam mechanics: Business case solution and problem solving

Assessment Elements

• Assignments
• Attendance
• Midterm exam I
• Midterm exam II
• Midterm exam III
• Final exam

Interim Assessment

• Interim assessment (3 module)
  0.2 * Assignments + 0.1 * Attendance + 0.4 * Final exam + 0.1 * Midterm exam I + 0.1 * Midterm exam II + 0.1 * Midterm exam III

Bibliography

Recommended Core Bibliography

• Ross, S. A., Westerfield, R., & Jordan, B. D. (2012). Fundamentals of corporate finance. Slovenia, Europe: McGraw-Hill. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.D5D5B17E

Recommended Additional Bibliography

• Berk, J., DeMarzo, P., & Harford, J. V. T. (2014). Fundamentals of Corporate Finance, Global Edition (Vol. Third edition). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419502