Kurso programos
FINANCIAL MANGEMENT (BS at Vilnius University 3'rd year International Business Group
VILNIUS UNIVERSITY
BUSINESS SCHOOL
FUNDAMENTALS OF CORPORATE FINANCE
Prepared by prof. dr. Arvydas Paškevičius
The course Fundamentals of Corporate Finance introduces the fundamentals of financial management of a public company, therefore it may be attended by the students who are only starting to study financial disciplines.
The course of Fundamentals of Corporate Finance covers the concepts of cash flows, the fundamentals of financial analysis and introduces the principles of long-term financial planning and various cases of calculation of time value of money.
The purpose of the course is not only to acquaint the students with the fundamental concepts of corporate managerial finance but also to formulate practical skills while solving elementary financial problems. Therefore, the course includes not only theoretical lectures but also practical work and home assignments. The course consists of 48 hours, 5 credits.
VMA
SYLABUS
1. Introduction to Corporate Finance
1.1. Corporate Finance and the Financial Manager
1.2. The Forms of Business Organization
1.3. The Goal of Financial Management
1.4. The Agency Problem and Control of the Corporation
1.5. Financial Markets and the Corporation
2. Financial Statements and Cash Flow
2.1. The Balance Sheet
2.2. The Income Statement
2.3. Cash flow
3. Working with Financial Statements
3.1. Cash Flow and Financial Statements: A Closer Look
3.2. Standardized Financial Statements
3.3. Ratio Analysis
3.4. The Du Pont Identity
3.5. Using Financial Statement information
Lecture Notes Q&P Test Questions
4. Long-term Financial Planning and Growth
4.1. What is Financial Planning?
4.2. Financial Planning Models: A First Look
4.3. The Percentage of Sales Approach
4.4. External Financing and Growth
Lecture Notes Q&P Test Questions
5. The Time Value of Money
5.1. Future Value and Compounding
5.2. Present Value and Discounting
5.3. More on Present and Future Values
Lecture Notes Q&P Test Questions
6. Discounted Cash Flow Valuation
6.1. Present and Future Values of Multiple Cash Flows
6.2. Valuing Level Cash Flows: Annuities and Perpetuities
6.3. Comparing Rates: The Effect of Compounding
6.4. Loan Types and Loan Amortization
Lecture Notes Q&P Test Questions
7. Interest Rates and Bond Valuation
7.1. Bonds and Bond Valuation
7.2. More on Bond Features
7.3. Bond Ratings
7.4. Some Different Types of Bonds
7.5. Bond Markets
7.6. Inflation and Interest Rates
7.7. Determinants of Bond Rates
Lecture Notes Q&P Test Questions
8. Stock Valuation
8.1. Common Stock Valuation
8.2. Some Features of Common and Preferred Stock
8.3. Stock Markets
Lecture Notes Q&P Test Questions
LITERATURE
1. Fundamentals of Corporate Finance, Ross, S. A. 2016.
2. Principles of Corporate Finance, Brealey, Myers, 2010.
3. Financial Management, Ray M. Brooks. 2010.
4. Capital Markets, Fabozzi Modigliani. 2010 .
Textbook materials (access can be granted individually) Ch1 Ch2 Ch3 Ch4 Ch5 Ch6 Ch7 Ch8 Ch9 Ch10
SCHEDULE
|
Nr. |
S.D. |
Data |
Time |
Room |
Chapter |
|
1 |
Thu |
6-Sep |
9:00-10:30 |
202 |
Introduction to the Course. Introduction to Corporate Finance |
|
2 |
Thu |
6-Sep |
11:00-12:30 |
202 |
Introduction to Corporate Finance. The preparation to the test |
|
3 |
Thu |
13-Sep |
9:00-10:30 |
202 |
Financial Statements and Cash Flow |
|
4 |
Thu |
13-Sep |
11:00-12:30 |
202 |
Financial Statements and Cash Flow. The preparation to the test |
|
5 |
Thu |
20-Sep |
9:00-10:30 |
202 |
Financial Statements and Cash Flow. The preparation to the test |
|
6 |
Thu |
20-Sep |
11:00-12:30 |
202 |
Working With Financial Statements |
|
7 |
Thu |
27-Sep |
9:00-10:30 |
EC |
Test #1 (Ch1-2) |
|
8 |
Thu |
27-Sep |
11:00-12:30 |
202 |
Working With Financial Statements |
|
9 |
Thu |
4-Oct |
9:00-10:30 |
202 |
Working With Financial Statements. Practice and the preparation to the test |
|
10 |
Thu |
4-Oct |
11:00-12:30 |
202 |
Working With Financial Statements. Practice and the preparation to the test. Long-term Financial Planning and Growth |
|
11 |
Thu |
11-Oct |
9:00-10:30 |
202 |
Long-term Financial Planning and Growth |
|
12 |
Thu |
11-Oct |
11:00-12:30 |
202 |
Long-term Financial Planning and Growth. Practice and the prteparation to the test |
|
13 |
Thu |
18-Oct |
9:00-10:30 |
EC |
Test #2 (Ch3-4) |
|
14 |
Thu |
18-Oct |
11:00-12:30 |
202 |
The Time Value of Money Discounted Cash Flow Valuation |
|
15 |
Thu |
25-Oct |
9:00-10:30 |
202 |
Discounted Cash Flow Valuation practice |
|
16 |
Thu |
25-Oct |
11:00-12:30 |
202 |
The Time Value of Money Discounted Cash Flow Valuation |
|
17 |
Thu |
1-Nov |
|
|
|
|
18 |
Thu |
1-Nov |
|
|
|
|
19 |
Thu |
8-Nov |
9:00-10:30 |
EC |
Discounted Cash Flow Valuation. Practice and the preparation to the test |
|
20 |
Thu |
8-Nov |
11:00-12:30 |
202 |
Interest Rates and Bond Valuation |
|
21 |
Thu |
15-Nov |
9:00-10:30 |
EC |
Test #3 (Ch5-6) |
|
22 |
Thu |
15-Nov |
11:00-12:30 |
202 |
Interest Rates and Bond Valuation |
|
23 |
Thu |
22-Nov |
9:00-10:30 |
202 |
Interest Rates and Bond Valuation. Practice and the preparation to the test |
|
24 |
Thu |
22-Nov |
11:00-12:30 |
202 |
Interest Rates and Bond Valuation. Practice and the preparation to the test. |
|
25 |
Thu |
29-Nov |
11:00-12:31 |
202 |
Interest Rates and Bond Valuation. Practice and the preparation to the test. |
|
26 |
Thu |
29-Nov |
11:00-12:32 |
202 |
Interest Rates and Bond Valuation. Practice and the preparation to the test. |
|
27 |
Thu |
6-Dec |
9:00-10:30 |
EC |
Test #4 (Ch7) |
|
29 |
Thu |
13-Dec |
9:00-10:32 |
EC |
EXAM |
EVALUATION
Assessment requirements:
Analysis and solutions of tasks and problems at seminars, attendance of lectures and practical classes, interim tests, examination.
Final assessment criteria:
The grade assigned for problem solution at seminars is multiplied by 20%.
Colloquium tests shall be taken by electronic means at the Examination centre. Students are required to solve not less than 50% of all tasks presented in four tests. Where the grade for the colloquium is above 5, it is multiplied by 20% and shall be added to the final result. It is necessary to pass all 4 tests. Students who during semester have passed all tests and have accumulated positive assessment may be absent exam.
Composition of the final accumulative grade:
The final accumulative grade shall be composed of:
Problem solutions at seminars and lectures – 20 %
Grade from colloquium 1 – 20%
Grade from colloquium 2 – 20%
Grade from colloquium 3 – 20%
Grade from colloquium 4 – 20%
TEST RESULTS
Grįžti