International Corporate Finance

2021/2022

Academic Year

ENG

Instruction in English

5

ECTS credits

Delivered at:

Магистерская программа "Международный бизнес", направление подготовки "Менеджмент"

Course type:

Compulsory course

When:

1 year, 2, 3 module

Instructors

Guseva, Olga

Kratko, Irina

Course Syllabus

Abstract

This course is a corporate finance course of basic level. The aim of the course is to provide the student with sufficient knowledge to understand the logic of the modern financial analysis of strategic corporate decisions and it focuses mainly on financial decision- making process in corporations including investing, financing, payout policies. The course covers basic finance topics such as principles of equity and debt valuation, cost of capital, capital structure. The course covers such topics as debt and equity valuation; estimating the risk and the cost of capital; modelling the cash flows; optimization of capital structure; payout policy; and investment decisions.

Learning Objectives

• know main features of multinational companies and explain why we should pay attention to international character of the company;
• know core corporate finance concepts and theories
• know the logic and the mechanism of raising the capital by large companies
• know the logic and the mechanisms of payout policy of large corporations
• be able to apply key corporate finance concepts to multinational companies
• be able to estimate the cost of capital of a public corporation
• be able to evaluate the efficiency of an investment project
• be able to describe the process of decision-making in multinational companies and analyze agency problems inside
• be able to apply classical models while making equity valuation

Expected Learning Outcomes

• be able to apply classical models while making equity valuation
• be able to apply key corporate finance concepts to multinational companies
• be able to describe the process of decision-making in multinational companies and analyze agency problems inside
• be able to estimate the cost of capital of a public corporation
• be able to evaluate the efficiency of investment project and cash flows
• know the logic and the mechanisms of payout policy of large corporations
• know the main features of multinational companies and explain why we should pay attention to international character of the company

Course Contents

• Introduction to Corporate Finance
• Measuring the Value. Debt Valuation
• Risk and Return. Capital Asset Pricing Model
• Equity Valuation
• Capital Structure and Overall Cost of Capital
• Investment Decisions
• Payout Policy

Assessment Elements

• Final exam in form of a case study
• work & home assignments
• Final exam in form of a case study
• work & home assignments

Interim Assessment

• 2021/2022 3rd module
  0.6 * work & home assignments + 0.4 * Final exam in form of a case study

Bibliography

Recommended Core 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
• Butler, K. C. (2016). Multinational Finance : Evaluating the Opportunities, Costs, and Risks of Multinational Operations (Vol. Sixth edition). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1221493
• Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset (Vol. 3rd ed). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442924
• Principles of corporate finance, Brealey, R. A., 2017

Recommended Additional Bibliography

• Corporate Finance : Theory and Practice Vernimmen, Pierre; Quiry, Pascal;and more John Wiley & Sons, Incorporated 2014 ISBN: ISBN number:9781118849330, ISBN number:9781118849323