Kurso programos
CORPORATE FINANCE (BS at Vilnius University 3'rd year International Business Group)
VILNIUS UNIVERSITY
BUSINESS SCHOOL
CORPORATE FINANCE
International Business Group Prepared by prof. dr. Arvydas Paškevičius
With the consent of the administration, students who could not participate in the exam due to illness or other justifiable reason, will be able to write the missed exam on December 15. 11 o'clock in the exam center. Those interested should send an explanation and supporting documents to arvydas@paskevicius.com
The course 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 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
ORGANIZATION OF STUDIES
Dear students
We will use several programs to organize our studies.
First, this page provides all the information (lecture schedule, lecture notes, exercise tasks, recommended reading, case study tasks, exam questions and assessment requirements and results).
Second, VMA e-learning, where you will find practice, tests and exam tasks, as well as a link to this page.
Thirdly, in a special situation, the BS administration can organize studies remotely. In this case, we will organize lectures, seminars, consultations and exams using the MS
teams program. Instructions on how to install MS Teams can be found HOW TO ATTEND A VIDEO LECTURE (Instructions
in English are given at the end).
After installing MS Teams, use the link to join the Corporate Finance (International business 3IBBA)
SCHEDULE
|
Nr. |
S.D. |
Data |
Time |
Room |
Group 1 |
Group 2 |
Notes |
|
1 |
Thu |
8-Sep |
13:00-14:30 |
103 |
A lecture. Introduction to the Course. Introduction to Corporate Finance |
A lecture. Introduction to the Course. Introduction to Corporate Finance |
Homework: Visit the website https://www.paskevicius.com/kurso_programos/?id=167 Topic 1 test questions |
|
2 |
Thu |
15-Sep |
13:00-14:30 |
103 |
A lecture. Financial Statements and Cash Flow |
A lecture. Financial Statements and Cash Flow |
Homework: topic 2 test questions. |
|
3 |
Thu |
22-Sep |
11:00-12:30 |
103 |
Exercise/seminar. The preparation to the test. Introduction to Corporate Finance. Financial Statements and Cash Flow |
|
|
|
4 |
Thu |
22-Sep |
13:00-14:30 |
103 |
A lecture. Financial Statements and Cash Flow. The preparation to the test. Working With Financial Statements |
A lecture. Financial Statements and Cash Flow. The preparation to the test. Working With Financial Statements |
|
|
5 |
Thu |
22-Sep |
14:40-16:10 |
103 |
|
Exercise/seminar. The preparation to the test. Introduction to Corporate Finance. Financial Statements and Cash Flow |
Homework: Preparing for the test. Self-test |
|
6 |
Thu |
29-Sep |
11:00-12:30 |
EC 108-1 108-2 |
Test #1 (Ch 1,2) |
Test #1 (Ch 1,2) |
If the test is not performed at the exam center, but remotely, then during the test it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen. |
|
7 |
Thu |
29-Sep |
13:00-14:30 |
103 |
A lecture. Working With Financial Statements |
A lecture. Working With Financial Statements |
Homework: Chapter 3 Questions and Problems #1-17,26,29 (page 88-89) must be solved in Word format and must be submitted to the teacher by 11 a.m. on the 6th of April. (arvydas@paskevicius.com) Chapter 3 test questions must be reviewed. |
|
8 |
Thu |
6-Oct |
11:00-12:30 |
103 |
Exercise/seminar. Working With Financial Statements |
|
|
|
9 |
Thu |
6-Oct |
13:00-14:30 |
103 |
A lecture. Long-term Financial Planning and Growth |
A lecture. Long-term Financial Planning and Growth |
Homework: Chapter 4 Q&P # 1-14 (page 120-123) must be solved in Word format and must be submitted to the teacher by 11 a.m. on the 13th of April. (arvydas@paskevicius.com) . Chapter 4 test question must be reviewed. |
|
10 |
Thu |
6-Oct |
14:40-16:10 |
103 |
|
Exercise/seminar. Working With Financial Statements |
|
|
11 |
Thu |
13-Oct |
11:00-12:30 |
103 |
Exercise/seminar. Long-term Financial Planning and Growth. |
|
|
|
12 |
Thu |
13-Oct |
13:00-14:30 |
103 |
A lecture. The preparation to the test. Working With Financial Statements. Long-term Financial Planning and Growth. |
A lecture. The preparation to the test. Working With Financial Statements. Long-term Financial Planning and Growth |
Homework: Preparing for the Examination I. Self-test |
|
13 |
Thu |
13-Oct |
14:40-16:10 |
103 |
|
Exercise/seminar. Long-term Financial Planning and Growth. |
|
|
14 |
Thu |
20-Oct |
11:00-12:30 |
EC 108-3 108-4 108-5 |
Examination I |
Examination I |
If the examination is not performed at the exam center, but remotely, then during the examination it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen |
|
15 |
Thu |
20-Oct |
13:00-14:30 |
103 |
A lecture. The Time Value of Money. Discounted Cash Flow Valuation. |
A lecture. The Time Value of Money. Discounted Cash Flow Valuation. |
Homework: Chapter 5 Q&P # 1-10 (page 152-153) must be solved in Word format and must be submitted to the teacher by 11 a.m. on the 27th of October. (arvydas@paskevicius.com) . Chapter 5 test question must be reviewed. |
|
16 |
Thu |
27-Oct |
11:00-12:30 |
103 |
Exercise/seminar. The Time Value of Money. |
|
|
|
17 |
Thu |
27-Oct |
13:00-14:30 |
103 |
A lecture. Discounted Cash Flow Valuation. |
A lecture. Discounted Cash Flow Valuation. |
Homework: Homework: Chapter 6 Q&P # 1-15 (page 191-192). must be solved in Word format and must be submitted to the teacher by 11 a.m. on the 3rd of November. (arvydas@paskevicius.com). Chapter 6 test question must be reviewed. |
|
18 |
Thu |
27-Oct |
14:40-16:10 |
103 |
|
Exercise/seminar. The Time Value of Money. |
|
|
19 |
Thu |
3-Nov |
11:00-12:30 |
103 |
Exercise/seminar. Discounted Cash Flow Valuation. |
|
|
|
20 |
Thu |
3-Nov |
13:00-14:30 |
103 |
A lecture. Interest Rates and Bond Valuation. |
A lecture. Interest Rates and Bond Valuation. |
Homework: Chapter 7 Q&P # 1-12, 15 (page 238-239) . must be solved in Word format and must be submitted to the teacher by 11 a.m. on the 10th of November. (arvydas@paskevicius.com). Chapter 7 test question must be reviewed.
|
|
21 |
Thu |
3-Nov |
14:40-16:10 |
103 |
|
Exercise/seminar. Discounted Cash Flow Valuation. |
|
|
22 |
Thu |
10-Nov |
11:00-12:30 |
103 |
Exercise/seminar. Interest Rates and Bond Valuation. |
|
|
|
23 |
Thu |
10-Nov |
13:00-14:30 |
103 |
Guest professor's lecture / |
Guest professor's lecture / |
|
|
24 |
Thu |
10-Nov |
14:40-16:10 |
103 |
|
Exercise/seminar. Interest Rates and Bond Valuation. |
|
|
25 |
Thu |
17-Nov |
| Business trip | Business trip
|
|
|
|
26 |
Thu |
24-Nov |
11:00-12:30 |
103 |
Analysis of the selected company and presentation of results |
|
|
|
27 |
Thu |
24-Nov |
13:00-14:30 |
103 |
Guest professor's lecture. Juknys Justinas “Moody’s and Ratings”
|
Guest professor's lecture. Juknys Justinas “Moody’s and Ratings” |
|
|
28 |
Thu |
24-Nov |
14:40-16:10 |
103 |
|
Analysis of the selected company and presentation of results
|
|
|
29 |
Thu |
1-Dec |
11:00-12:30 |
103 |
Analysis of the selected company and presentation of results |
|
|
|
30 |
Thu |
1-Dec |
13:00-14:30 |
103 |
Guest professor's lecture / An analysis of crowdfunded projects
|
Guest professor's lecture / |
Homework: Preparing for the Examination II. Self-test
|
|
31 |
Thu |
1-Dec |
14:40-16:10 |
103 |
|
Analysis of the selected company and presentation of results |
|
|
32 |
Thu |
8-Dec |
11:00-12:30 |
EC 108-1 108-2 108-3 |
Examination II |
Examination II |
If the examination is not performed at the exam center, but remotely, then during the examination it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen.
|
| 33 | Thu | 8-Dec
|
13:00-14:30
| 103 | Analysis of the selected company and presentation of results | Analysis of the selected company and presentation of results |
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
Lecture Notes Test Questions PSW VUEF2012
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
ANALYSIS AND PRESENTATION OF THE SELECTED COMPANY
Send requests and presentations: arvydas@paskevicius.com
Slide presentations limited to a duration of 10-15 minutes (desirable in the University Business School form of presentations). Presentations file name must be shortened name of the company. Calculation tables, as additional material illustrating the decision is contained in the Excel form. The presentation you have to send no later than 24 hours before the presentation. The first slide specify: the company name and the author (s) surname (s).
The analyzed companies are very different, therefore their analysis is original in all cases. The student independently chooses a company from among the companies listed in EURONEXT or NYSE.
The following structure of the Company's analysis is recommended:
1. A general overview of the company, which can describe when the company was established, how its legal status has changed. Advantages and disadvantages of the company's geographical location. The main activity of the company: product-service range, past and future perspectives. Branch overview, competitors. Marketing, markets. Management structure, managers, shareholders, number of employees, dynamics. And other general information.
2. The financial statements of absolute numbers, the overall size of the company balance sheet and profit (loss) statement; the company's balance sheet and profit and loss account for the base year. The tables provided are accompanied by comments explaining the dynamics of the indicators. The student must present not only the trends, but also their opinion about them and possible ways to improve their financial condition.
3. Cash flow statement. The tables provided are accompanied by comments explaining the dynamics of the indicators. The student must present not only the trends, but also their opinion about them and possible ways to improve their financial condition.
4. Ratio analysis.
Short-term solvency and liquidity ratios. Long - term solvency and capital structure indicators. Asset management efficiency and turnover indicators. Profitability indicators. Market value indicators. Du Pont analysis. The presented indicators are accompanied by comments explaining the dynamics of the indicators. The student must present not only the trends, but also their opinion about them and possible ways to improve their financial condition.
5. A summary conclusion of the company's analysis is presented. Recommendations to buy stocks, refrain from trading or sell.
At the end, the sources of used literature and information are presented.
Assessment of company analysis and presentation:
1. Presentations submission timeliness, slide quality, oratorical art, audience involvement in the company analysis 0-3.
2. Size and uniqueness of the analyzed company 0-3
3. The width of the analysis performed, i. e. whether enough work has been done 0-4
4. Depth of analysis, i. e. whether complex analytical methods were used 0-4
5. It was collected an additional, interesting and valuable material on the Internet. 0-2
6. A summary conclusion. Recommendations to buy stocks or sell. 0-2
7. Working as opponent of the peer presentations or active participation in the cases analysis 0-1. Good questions or comments prized pluses, 3-4 pluses equal to 1 point.
LITERATURE
1. Fundamentalsof Corporate Finance, Ross, S. A. 2019.
2.Principles of Corporate Finance, Brealey, Myers, 2010.
3. Financial Management, Ray M. Brooks. 2010.
4. Capital Markets, Fabozzi Modigliani. 2010 .
EVALUATION
Assessment requirements:
For the final assessment, students must work actively during the semester; perform homework assignments; provide an analysis of the selected company and present its results; successfully pass the test, parts I and II of the exam.
Final assessment criteria:
Homework assignments. 10 percent doing homework assignments. Assignments in Word format must be submitted to the teacher before the beginning of the classes arvydas@paskevicius.com The assessment of the completed assignment is multiplied by 0.1 and added to the final assessment. The assessment of late tasks is reduced by 50%.
Work in auditorium (seminars and lectures). 10 percent assessment consists of the student's active participation in lectures and seminars, the solution of practical tasks. The invited student presents the completed homework assignments, comments on them and discusses them. The evaluation of the solution of the practical tasks is multiplied by 0.1 and summed up to the final evaluation.
Analysis of the selected company and presentation of results. The analysis of the selected company, interpretation of the results, their presentation are evaluated. The analysis score is multiplied by 0.2 and added up to the final assessment. The assessment of late tasks is reduced by 50%.
Test. Test (closed and open questions), problem solving. Students must complete at least 50% of the assignments. If the grade is 5 or higher, it is multiplied by 0.10 and added to the overall final grade. Failure to pass the test will result in a negative final evaluation. If the test is not performed at the exam center, but remotely, then during the test it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen.
Examination I. Examination I (closed and open questions), problem solving. Students must complete at least 50% of the assignments. If the grade is 5 or higher, it is multiplied by 0.25 and added to the overall final grade. Failure to pass the examination will result in a negative final evaluation. If the examination is not performed at the exam center, but remotely, then during the examination it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen.
Examination II. Examination II (closed and open questions), problem solving. Students must complete at least 50% of the assignments. If the grade is 5 or higher, it is multiplied by 0.25 and added to the overall final grade. Failure to pass the examination will result in a negative final evaluation. If the examination is not performed at the exam center, but remotely, then during the examination it is mandatory to turn on the MS TEAMS on the phone and point the camera at the computer screen
Composition of the final accumulative grade:
The final accumulative grade shall be composed of:
Homework assignments – 10 %
Work in auditorium (seminars and lectures) – 10%
Analysis of the selected company and presentation of results – 20%
Test – 10%
Examination I – 25%
Examination II – 25%
TEST RESULTS
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