| CORPORATE FINANCE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shandong University of Finance and Economics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Module Code： | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Number of Instruction Hours: 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Credits：3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| About this Module | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate Finance is a compulsory course for all the students who are in the subject of finance,which presents the basic insights of corporate finance theory, but emphasizes the application of theory to real business decisions. There are four basic issues included in this module. After completing reviewing of time value of money, students are required to get access to capital budgeting and capital structure. Apart from them, dividend policy is a quite essential issue in the course, which helps decision makers to increase firm’s value more effectively. Each session involves class discussion, some centered on lectures and others around business cases. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By the end of the course, students should also be able to read and analyze financial reports, solve basic financial management problems. Meanwhile, some basic capital budgeting criteria such NPV, IRR should be fluently used by students. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prerequisites and Preparation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE, INVESTMENT. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Course Goals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The objective of the course is for you to learn the financial tools needed to make good business decisions. The emphasis will be on linking corporate finance to other aspects of corporate strategy. There are three main sessions of the course. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. Financing Needs and Capital Structure: The course starts with analyzing the factors that determine a company’s need for external financing, be it debt or equity. We then move on to a consideration of the optimal mix of debt and equity financing. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. Project and Company Valuation: In the second module, we develop the tools needed for valuing investment projects, including the determination of the relevant cash flows and the appropriate discount rate. We will then use these basic tools to value companies, and to select investment projects. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. Selected Topics: The final module deals with selected aspects of modern corporate finance, most likely including Risk Management and Corporate Governance. The actual topics will be determined by the time available, and by the interests of students. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Course Components and Requirements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| · Assigned readings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| · Lectures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| · Six problem sets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| · One midterm exams | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| · Final Exam | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assigned Readings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CORPOATE FINANCE, by Stephen A. Ross | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Topical material and additional reading for class discussion may be assigned during the semester. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deliverables and Grading | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Method of evaluation and grading: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| This course is designed to be time-consuming and challenging. The course is a combination of lectures and cases. Unless you have the time to thoroughly prepare the cases, we strongly recommend that you not take the course. Each case will come with guideline questions. Students are required to submit a two-page memorandum on the cases. Students are required to work in teams of no more than five. Teams with less than three people are strongly discouraged. Only one memorandum need be handed in for a given group. You have the option of not handing in two cases during the semester. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The memorandums should be typed and double-spaced. They should be written as if your were presenting it to your business colleagues. The two-page limit is for text only. You may attach as many numerical calculations as you wish. Memorandums will not be accepted after the class has met. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class attendance and participation in case discussions is critical to the learning process. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||