2024/2025
Corporate Finance
Type:
Mago-Lego
Delivered by:
Department of Financial Management
When:
3 module
Open to:
students of one campus
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
In the modern climate, values of the traditional market economy are being revised. Hence, the concept of sustainable company development has become widespread superseding the concept of profit maximization. This goal is applicable not only to firms that focus on domestic business, but also to companies that operate internationally. Another noticeable trend in company development is expansion at an international level as an important mean of enhancing value for many companies. Since foreign markets can be distinctly different from local markets, they create opportunities for improving profits using advanced financial instruments and concepts. Many barriers to entry into foreign markets have been reduced or removed recently, not least due to the internet, thereby encouraging firms to pursue international business. Consequently, many firms have evolved into multinational companies (MNCs).We start by an overview of financial management and company in which it operates. Next, we focus on the critical factors that affect exchange rates and discuss various functions involved in managing exposure to exchange rate risk. We finally cover how MNCs manage long-term assets and liabilities (financial modelling) in the context where international investments face a much higher degree of political, economic, and regulatory risk than domestic investments. Knowledge of quantitative analysis will often be required to comprehend material and successfully complete exercises and exam questions. Therefore, students should be comfortable with basic statistics concepts. Students should also be able to use Excel for basic statistical analyses.
Learning Objectives
- The goal of this course is to provide students with the big picture of managing corporate finance.
Expected Learning Outcomes
- • Understand principles of modern financial analysis
- • Be able to discuss different stakeholders’ goals as a source of agency conflicts
- • Understand and apply capital budgeting techniques when making investment decisions
- • Be able to discuss the logic of capital structure decisions and understand how market imperfections influence capital structure decisions
- • Understand corporate payout decisions and be able to discuss market reaction to dividend payout
- • Be able to discuss logic of risk management decisions and sources to increase company value
- • Be able to discuss M&A motives and value creation via restructuring
Course Contents
- Fundamental concepts of corporate finance
- Fixed income securities
- Stocks and options
- Projects and their valuation
- Corporate valuation and governance
- Cash distributions and capital structure
- Managing global operations
- Tactical financing decisions
- Special topics
- Advanced issues
Interim Assessment
- 2024/2025 3rd module0.55 * Final individual closed-book exam + 0.15 * Mid-term test 1 + 0.15 * Mid-term test 2 + 0.15 * Mid-term test 3
Bibliography
Recommended Core Bibliography
- 9781265652463 - Richard A. Brealey, Stewart C. Myers, Franklin Allen et al - Principles of Corporate Finance, 14th ed. - 2022 - McGraw-Hills - https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=3242150 - nlebk - 3242150
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925
- Hull, J. C. (2017). Options, Futures, and Other Derivatives, Global Edition. [Place of publication not identified]: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1538007
Recommended Additional Bibliography
- Jeff Madura, & Roland Fox. (2020). International Financial Management, Edition 5. Cengage Learning.
- Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2016). Fundamentals of Multinational Finance, Global Edition: Vol. Fifth edition, Global edition. Pearson.