||Weekly Class Schedule
||Monday, 16:00 - 16:50/ Wednesday, 14:00 -15:50
||It is a prerequisite to
||Office Hours / Room / Phone
||The course introduces students to the ways investors and most importantly, managers can influence the cash flows of the company to enhance shareholder value, the approaches to attract capital and distribute profits. More specifically, the details of the managers' investment, financing, and dividend decisions will be examined. In addition, the common faulty decisions that do not enhance stockholders’ investment value will be analyzed.
||Main reading: Berk, J., DeMarzo, P., Harford, J., Fundamentals of Corporate Finance, 3rd edition 2015.
Supplementary reading: Brealey, R., Myers, S., Marcus, A., Fundamentals of Corporate Finance, 3rd edition 2001.
||After successful completion of the course, the student will be able to:
- Understand the basic types of financial management decisions and the role of the financial manager.
- Determine a firm’s cash flow from its financial statements.
- Analyze and interpret some common ratios of a company
- Apply the investment decision of a firm through the budgeting techniques.
- Evaluate the cost of capital as well as capital structure of a firm.
||Open class discussions with real-life examples, active tutorial sessions for engaged learning and continuous feedback on progress, team assignments, quizzes, team projects that involve theoretical and practical segments.
||Introduction to Corporate Finance
||Overview of financial statements, cash flow and interest rates
||Chapter 2, & 4
||Overview of Time Value of Money and Valuing Cash Flow Streams
||Valuation and Characteristics of Bonds and stocks & Quiz 1
||Chapter 6 & 7 (March 18)
||Discounted Cash Flow Valuation
||Systematic Risk and the Equity Risk Premium
||Chapter 11 & 12
||The Cost of Capital
||Raising Equity Capital
||Debt Financing & Quiz 2
||Chapter 15 ( April 29)
||Dividends and Payout Policy
||Financial Planning and Forecasting
||Chapter 18, 19 & 20
||Group Project Presentations