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FINANCIAL MANGEMENT (IBS at Vilnius University 3'rd year International Business Group)

 

 

VILNIUS UNIVERSITY

INTERNATIONAL BUSINESS SCHOOL

FUNDAMENTALS OF CORPORATE FINANCE

 

Prepared by prof. dr. Arvydas Paðkevièius

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.

SYLLABUS

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

       Lecture Notes               Test Questions

2.     Financial Statements and Cash Flow

2.1. The Balance Sheet
2.2. The Income Statement
2.3. Cash flow

                Lecture Notes             Test Questions

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

 

9. Net Present Value and Other Investment Criteria

 

9.1. Net present value

9.2. The Payback Rule

9.3. The Discounted Payback

9.4. The Average Accounting Return

9.5. The Internal Rate Of Return

9.6. The Profitability Index

                  Lecture Notes         Q&P           Test Questions

 

10. Making Capital Investment Decisions

 

10.1. Project Cash Flows: A First Look

10.2. Incremental Cash Flows

10.3. Pro Forma Financial Statements and Project Cash Flows

10.4. More on Project Cash Flow

10.5. Alternative Definitions of Operating Cash Flow

10.6. Some Special Cases of Cash Flow Analysis

               Lecture Notes         Q&P           Test Questions

 

LITERATURE

1. Fundamentals of Corporate Finance, Ross, S. A. 2010.

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

 

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 15%.

Where a student has missed not more than 25% of the total lectures and practical classes (seminars), 1 point or 10% are added to the final grade.

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 three tests. Where the grade for the colloquium is above 4, it is multiplied by 25% and shall be added to the final result. It is necessary to pass all 3 tests.

Composition of the final accumulative grade:

The final accumulative grade shall be composed of: 

Problem solutions at seminars and lectures – 15 %

Attendance of lectures and practical classes – 10%

Grade from colloquium 1 – 25%

Grade from colloquium 2 – 25%

Grade from colloquium 3 – 25%

 

        TEST RESULTS

  

A.Paskevicius research topic as of 2014-02-14

2014 The Baltic Securities Market



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