Kurso programos
CORPORATE FINANCE (Vilnius University Faculty of Economics and Business Administration. Finance and Banking Master Programme)
VILNIUS UNIVERSITY
Faculty of Economics and Business Administration
FINANCE AND BANKING
The course is dedicated to students ofFinance and Banking Master Programme
Prepared by prof. dr. Arvydas Paškevičius
The aim of the course is to form the theoretical and practical abilities and skills to evaluate a company’s corporate governance; to analyse a capital budgeting problem; to estimate a company’s cost of capital; to evaluate a company’s operating and financial leverage and its working capital management.
Student will be able: to evaluate a company’s corporate governance; to analyse a capital budgeting problems; calculate and interpret the weighted average cost of capital (WACC) of a company; to evaluate a company’s operating and financial leverage; explain the effects of leverage, taxes, financial distress, agency costs, and asymmetric information on a company’s cost of equity, cost of capital, and optimal capital structure; describe the expected effect of regular cash dividends, extra dividends, liquidating dividends, stock dividends, stock splits, and reverse stock splits on shareholders’ wealth and a company’s financial ratios; describe primary and secondary sources of liquidity and factors that influence a company’s liquidity position; to produce and to analyse the financial statements of a company.
Master of Science in Finance and Banking degree program participate in Chartered Financial Analyst (CFA) University Affiliation Program (UAP). Vilnius University is listed on the University Affiliation Program page on the CFA Institute website.Participation in the CFA University Affiliation Program gives us the opportunity to use the latest CFA instructor materials.
Student Guide to Scholarships
The course consists of 24 hours, 5 credits.
VMA Dear students, we kindly ask you to fill out a questionnaire
click here
SYLLABUS
1. Corporate Governance
1.1. Introduction
1.2. Corporate governance: Objectives and guiding principles
1.3. Forms of business and conflicts of interest
1.4. Specific sources of conflict: Agency relationships
1.5. Corporate Governance Evaluation: Board of director Attributes
1.6. Environmental, social, and governance factors
1.7. Valuation implications of corporate governance
2. Capital Budgeting
2.1. Introduction
2.2. The capital budgeting process
2.3. Basic principles of Capital Budgeting
2.4. Investment decision criteria
2.5. Cash flow projections
2.6. More on cash flow projections
2.7. Project analysis and evaluation
2.8. Other income measures and
valuation modelsThe Balance Sheet
3. Cost of Capital
3.1. Introduction
3.2. Cost of capital
3.3. Costs of the Different sources of capital
3.4. Topics in cost of capital
estimation3.2. Standardized Financial Statements
4. Measures of leverage
4.1. Introduction
4.2. Leverage
4.3. Business risk and financial risk4.4. External Financing and Growth
5. Capital Structure
5.1. Introduction
5.2. The Capital Structure Decision
5.3. Practical Issues in Capital Structure Policy
6. Dividends and Share repurchases: Basics
6.1. Introduction
6.2. Dividends: Forms
6.3. Dividends: Payment Chronology
6.4. Share Repurchases
6.5. Concluding RemarksPresent
and Future Values of Multiple Cash Flows
7. Dividends and Share repurchases: Analysis
7.1. Introduction
7.2. Dividend Policy and Company Value: Theory
7.3. Factors Affecting Dividend policy
7.4. Payout Policies
7.5. Analysis of Dividend Safety
8. Working Capital Management
8.1. Introduction
8.2. Managing and measuring Liquidity
8.3. Managing the Cash Position
8.4. Investing Short-term Funds
8.5. Managing accounts Receivable
8.6. Managing Inventory
8.7. Managing Accounts Payable
9. Financial Statement Analysis
9.1. Introduction
9.2. Common-Size Analysis
9.3. Financial Ratio Analysis
9.4. Pro Forma Analysis
Lecture Notes Test Questions
SCHEDULE FOR THE WORK
|
# |
S.D. |
Data |
Time |
Room |
Chapter |
Notes |
|
1 |
Tue |
11-Sep |
17:30-19:00 |
403 |
1.Corporate Governance |
Homework: Chapter 1 Test Questions |
|
2 |
Tue |
11-Sep |
19:10-21:00 |
403 |
2.Capital Budgeting |
|
|
3 |
Thu |
13-Sep |
17:30-19:00 |
403 |
2.Capital Budgeting |
Homework: Chapter 2 and 3 Test Questions |
|
4 |
Thu |
13-Sep |
19:10-21:00 |
403 |
3.Cost of Capital |
|
|
5 |
Fri |
14-Sep |
17:30-19:00 |
403 |
4.Measures of leverage |
|
|
6 |
Fri |
14-Sep |
19:10-21:00 |
403 |
4.Measures of leverage |
|
|
7 |
Tue |
18-Sep |
17:30-19:00 |
403 |
Test # 1 |
Homework: Chapter 4 and 5 Test Questions |
|
8 |
Tue |
18-Sep |
19:10-21:00 |
403 |
5.Capital Structure |
|
|
9 |
Thu |
20-Sep |
17:30-19:00 |
403 |
6.Dividends and Share repurchases: Basics |
Homework: Chapter 6 and 7 Test Questions |
|
10 |
Thu |
20-Sep |
19:10-21:00 |
403 |
7.Dividends and Share repurchases: Analysis |
|
|
11 |
Tue |
21-Sep |
17:30-19:00 |
403 |
8.Working Capital Management |
Homework: Chapter 8 and 9 Test Questions |
|
12 |
Tue |
21-Sep |
19:10-21:00 |
403 |
9.Financial Statement Analysis |
|
|
13 |
Tue |
2-Oct |
17:30-19:00 |
EC |
Exam |
|
LITERATURE
|
Michelle R. Clayman, CFA, Martin S. Fridson, CFA, George H. Troughton, CFA. |
2012 |
Corporate Finance: a practical approach |
2nd Edition |
Wiley |
|
Ross, Stephen A. Westerfield, Randolph W. Jordan, Bradford D. |
2009 |
Fundamentals of Corporate Finance |
9th Edition |
McGraw-Hill/Irwin |
|
Supplementary reading |
||||
|
Kester W. Carl, Richard S. Ruback, Peter Tufano |
2010 |
Case Problems In Finance |
||
|
Robert F. Bruner, Kenneth Eades, Michael Schill |
2010 |
Case Studies in Finance |
||
EVALUATION
Assessment requirements:
Analysis and solutions of tasks and problems at seminars, interim tests, examination.
Final assessment criteria:
The grade assigned for problem solution at seminars is multiplied by 0.20.
The grade assigned for Test # 1 (closed and open-ended tasks / questions) is multiplied by 0.40.
Examination shall be taken by electronic means at the Examination center. Students are required to solve tasks presented in the test. The grade of the examination is multiplied by 0.4 and shall be added to the final result.
Composition of the final accumulative grade
The final accumulative grade shall be composed of:
Problem solutions at seminars – 20 %
Test # 1 – 40%
Examination – 40%
Grįžti