Кто читает:: Банковский институт

Статус:: Курс обязательный

Когда читается:: 1-й курс, 1, 2 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

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.
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

Course Contents

Fundamentals of Corporate Finance.
Corporate Governance and other ESG Considerations in Investments Analysis
Capital Investments
Cost of Capital
Capital Structure & Financing Decisions
Measures of Leverage
Payout Policy
Working Capital & Liquidity
Company Valuation: Foundations
Mergers and Acquisitions

Assessment Elements

Attendance and participation in class discussions
Individual class and home assignments
Final Exam
The format of exam: -written (open questions plus quiz including multiple choice questions and problems) -in class, off-line

Interim Assessment

2024/2025 2nd module
0.1 * Attendance and participation in class discussions + 0.6 * Final Exam + 0.3 * Individual class and home assignments

Bibliography

Recommended Core Bibliography

Berk, J. B., & DeMarzo, P. M. (2014). Corporate Finance: The Core, Global Edition (Vol. Third edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1417990
Berk, J. B., & DeMarzo, P. M. (2017). Corporate Finance: The Core, Global Edition: Vol. Fourth edition. Pearson.
Brealey, R. A., & Allen, F. (2015). Principles of corporate finance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BEEE7487
DePamphilis, D. (2015). Mergers, Acquisitions, and Other Restructuring Activities. Elsevier. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.eee.monogr.9780128013908
McKinsey & Company Inc, Tim Koller, Marc Goedhart, & David Wessels. (2020). Valuation : Measuring and Managing the Value of Companies, University Edition. Wiley.
Richard Brealey, Stewart Myers, & Franklin Allen. (2020). ISE EBook Online Access for Principles of Corporate Finance: Vol. Thirteenth edition. McGraw-Hill Education.
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

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

Authors

Dimova Elena Anatolevna
ODINTSOVA ULYANA ALEKSANDROVNA
ELIZAROVA IRINA NIKOLAEVNA

Магистерская программа «Финансовый аналитик»

Контакты:

Corporate Issuers

Course Syllabus